Frederick W. Smith established FedEx in Little Rock, Arkansas, in 1971.
Smith developed the idea for an integrated overnight delivery network while studying at Yale University. His 1965 term paper proposed using aircraft to move packages through a central hub, a concept designed to make urgent deliveries more reliable than conventional systems.
Federal Express began operations in 1973 from Memphis International Airport, using a fleet of 14 Dassault Falcon 20 aircraft. Memphis was selected for its central location, favorable weather, and available airport infrastructure. The company initially served 25 cities and delivered 186 packages on its first night.
The company changed its name from Federal Express to FedEx in 2000. UPS is an older rival, founded in 1907, while DHL was founded in 1969. Although Smith founded the business, its early growth also depended on the hub-and-spoke logistics model and the deregulation of the U.S. airline industry.