$5 billion Net Worth, $87.7 billion Company: FedEx Visionary Fred Smith Passes Away

Frederick W. Smith, the founder of leading courier and logistics company, FedEx, passed away on June 21 at the age of 80. He died in Memphis, Tennessee, where FedEx has its global headquarters.
Smith came up with the core idea for FedEx while studying economics at Yale University. What began as a college paper on the need for a centralised overnight delivery system went on to revolutionise global shipping. Today, FedEx operates in more than 220 countries and territories, handles over 1.7 crore packages daily, and employs close to five lakh people across the world.

FedEx registered revenues of $87.7 billion (approximately Rs 7.3 lakh crore) in the financial year 2023–24, while Smith’s personal wealth has been estimated at between $5 billion and $6 billion (Rs 41,000–Rs 49,000 crore).

Smith was raised in Memphis, and lost his father early in life. After completing his studies, he joined the United States Marine Corps and served two tours in Vietnam, where he earned several honours, including the Silver Star and two Purple Hearts for his bravery.

He founded Federal Express in 1971, investing $4 million from his inheritance and securing $91 million from investors. The company began operations in 1973 with 14 small aircraft, 389 employees, and service to 25 American cities.

But the early days were tough. In a widely told story, when the company was on the verge of shutting down due to lack of funds, Smith flew to Las Vegas with the firm’s last $5,000, gambled at a blackjack table, and won $27,000—just enough to keep the business running for another week.

Smith introduced the now widely used hub-and-spoke model in logistics, where shipments are routed through a central hub before being sent to their final destinations.


The model allowed FedEx to offer dependable overnight delivery and has since been adopted by airlines and other courier firms around the world. Over time, FedEx expanded its services globally, made several acquisitions, and played an important role in maintaining supply chains during the COVID-19 pandemic, especially in vaccine distribution.

Smith served as CEO of FedEx for nearly 50 years before stepping down in 2022 and assuming the role of Executive Chairman of the board, a position that he held until his death. Raj Subramaniam, an Indian-American, succeeded him as CEO of the company.

Smith was keen on supporting military veterans and contributing to educational causes.


He is survived by his wife, Dianne Avis, and ten children. His son Arthur Smith is currently the head coach of the Atlanta Falcons, an NFL team. His daughter Molly Smith is a Hollywood film producer. Another daughter, Windland Smith Rice, a nature photographer, passed away in 2005. – TWL Bureau