![]() Reorganization and Caliber acquisition Ī Federal Express McDonnell Douglas MD-11 in 1995 In 1994, Federal Express shortened its name to "FedEx" for marketing purposes, officially adopting a nickname that had been used for years. In 1988, it acquired one of its major competitors, Flying Tiger Line, creating the largest full-service cargo airline in the world. The company grew rapidly, and by 1983 had a billion dollars in revenues, a rarity for a startup company that had never taken part in mergers or acquisitions in its first decade. Smith cited his reasons for choosing Memphis International Airport included its location near the mean population center of the country and its lack of frequent inclement weather. He began formal operations in 1973, when he moved operations to Memphis. While his professor didn't think much of the idea, Smith pressed on. He drew up the company's concept in a term paper at Yale, in which he called for a system specifically designed for urgent deliveries. The company was founded in Little Rock, Arkansas in 1971 as Federal Express Corporation by Frederick W. FedEx's air shipping services have made its main hub (aka the "Superhub") at Memphis International Airport the busiest cargo airport in the world by 2020.įor history prior to its 1997 reorganization, see FedEx Express. ![]() In addition, FedEx has purchased the naming rights to FedExField of the NFL's Washington Commanders and FedExForum of the NBA's Memphis Grizzlies. ![]() įedEx's prominence in both the United States and the world have made it a common topic in popular culture, with examples including the film Cast Away as well as some of its marketing slogans (most famously "when it absolutely positively has to be there overnight"). FedEx is also one of the top contractors of the US government and assists in the transport of some United States Postal Service packages through their Air Cargo Network contract. Since then, FedEx also started FedEx Ground, FedEx Office (originally known as Kinko's), FedEx Supply Chain, FedEx Freight, and various other services across multiple subsidiaries, often meant to respond to its main competitor, UPS. FedEx today is best known for its air delivery service, FedEx Express, which was one of the first major shipping companies to offer overnight delivery as a flagship service. The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. The company also says it’s looking to capitalize on the demand for e-commerce outside of Amazon, and building its network intentionally to “serve thousands of retailers in the e-commerce space.FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company focused on transportation, e-commerce and business services based in Memphis, Tennessee. It has increasingly relied on its own contracted last-mile delivery services in recent years, and also allocates more of this business to both UPS and USPS than to FedEx, even outside its other offerings.įedEx did explicitly point out that its Express contract ending had no impact on other aspects of its relationship with Amazon at the time, noting that its international and “other” business units (including ground) weren’t affected. The e-commerce giant also recently began its own Delivery Service Partner program to fund and support delivery startup businesses that can help address its need for logistics. FedEx previously said that Amazon actually makes up less than 1.3% of the shipper’s total revenue, as measured over the year that ended on December 31, 2018.Īmazon is expanding its own shipping capabilities considerably, adding more aircraft to its fleet, and deploying ground-based wheeled delivery robots for last-mile package transportation. ![]() The new contract termination is more significant than the earlier one, in that it means FedEx will not be providing any last-mile delivery service for Amazon, the largest online retailer, in addition to its less sizeable Express air freight. This is the second contract with Amazon that FedEx has allowed to end without renewal, following a similar decision in June that covered only Express air shipments. ![]() FedEx is ending a partnership with Amazon to supply the e-commerce company with ground delivery shipping after its current contract ends this month, the company confirmed to Bloomberg. ![]()
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