There have been multiple occasions where the United States Postal Service has lost or “misplaced” a package that I had ordered on the internet. Usually the mail system is efficient however since it’s a brand of the federal government, things can get a bit wonky at times, to say the least. Luckily private and publicly owned shipping companies began to popup, and they attempt to offer a better service for customers. FedEx would be one of the leading companies that offer such a service, and now I relay on them to handle my shipping and postal needs. Each year, FedEx sees billions of dollars in revenue and net income, proving that people will pay extra for a company to handle their shipping needs, not the United States Postal Service. While the company is fiscally very strong today, that wasn’t always the case.
FedEx fomed in 1971 in Little Rock, Arkansas where it was known as “Federal Express”. Their primary business concerns dealt with express shipping, typically via the air. The company was then incorporated in 1997 under the name FedEx as they looked to expand their services. When the company acquired Caliber Systems Inc, the moved into the realm of small-package shipping, ground couriers, expedited shipping services, and freight carrying services. FedEx would primarily only serve businesses and corporations, however the acquisition of Kinko’s in 2004 allowed them to offer retail access to the general public. And the person behind it all, was a man by the name of Frederick W. Smith.
Smith was with FedEx and Federal Express in the early days, and now serves as the chairman, CEO, and president of the company. While FedEx is now extremely popular, that wasn’t always the case. Back in the day, the company was on the verge of going bankrupt. FedEx inquired a massive fuel bill for $24,000 dollars, however the company only had just $5,000 to their name. So what did Smith do? Did he take out a loan or borrow money? Nope. Smith took the companies last $5,000 dollars and in a bold move, went to Las Vegas to gamble not only the money, but the future of the company. He could have lost everything, but instead Smith ended up turning that $5,000 into $27,000 of winnings from a blackjack game. Smith then used that money to pay off their debts, and FedEx was saved. So while the company is now fiscally sound, it wasn’t too long ago that they nearly lost everything. If it weren’t for blackjack and Las Vegas, we would still be relying on USPS to handle our shipping needs. Sometimes gambling does pay off.
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