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FedEx
From Wikipedia, the free encyclopedia
Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and
Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was
founded to oversee all of the operations of those companies and its original air division, Federal Express.[5]
In the 1990s, FedEx Ground planned, but later abandoned, a joint service with British Airways to have BA fly a
Concorde supersonic jet airliner to Shannon, Ireland with FedEx packages on board, and then FedEx would have
flown the packages subsonically to their delivery points in Europe. Ron Ponder, a vice president at the time, was in
charge of this proposed venture.
FedEx Corp. acquired privately held Kinko's, Inc. in February 2004 and re-branded it FedEx Kinko's. The
acquisition was made to expand FedEx's retail access to the general public. After the acquisition, all FedEx Kinko's
locations exclusively offered only FedEx shipping.[5] In June 2008, FedEx announced that they would be dropping
the Kinko's name from their ship centers; FedEx Kinko's would now be called FedEx Office.[6][7] In September
2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded it FedEx SmartPost.[5]
In December 2007, the U.S. Internal Revenue Service "tentatively decided" the FedEx Ground Division might be
facing a tax liability of $319 million for 2002, due to misclassification of its operatives as independent contractors.
Reversing a 1994 decision which allowed FedEx to classify its operatives that own their own vehicles as
independent contractors, the IRS audited the years 2003 to 2006, with a view to assessing whether similar
misclassification of operatives had taken place. FedEx denied that any irregularities in classification had occurred,
but faced legal action from operatives claiming benefits that would have accrued had they been classified as
employees.[8]
In June 2009, FedEx began a campaign against United Parcel Service (UPS) and the Teamsters union, accusing its
competitor of receiving a bailout in an advertising campaign called "Brown Bailout". FedEx claimed that signing
the Federal Aviation Administration re-authorization bill, which would let some of its workers unionize more
easily (and, according to the Memphis-based company, "could expose [its] customers at any time to local work
stoppages that interrupted the flow of their time-sensitive, high-value shipments),[9] was equivalent to giving UPS
a "bailout". Independent observers heavily criticized FedEx's wording,[9] claiming that it was "an abuse of the
term".[9] FedEx Express employees are regulated under the Railway Labor Act.[10]
On January 14, 2013, FedEx named Henry Maier CEO and President of FedEx Ground, to take effect after David
Rebholz retired on May 31, 2013.[11] On July 17, 2014, FedEx was indicted for conspiracy to distribute controlled
substances in cooperation with the Chhabra-Smoley Organization and Superior Drugs.[12] According to the U.S.
Department of Justice, "FedEx is alleged to have knowingly and intentionally conspired to distribute controlled
substances and prescription drugs, including Phendimetrazine (Schedule III); Ambien, Phentermine, Diazepam,
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and Alprazolam (Schedule IV), to customers who had no legitimate medical need for them based on invalid
prescriptions issued by doctors who were acting outside the usual course of professional practice."[13] A
representative for the company contested these claims, stating that it would violate personal rights of customers to
deny service and that "We are a transportation company we are not law enforcement".[14] On July 17, 2016 the
Department of Justice U.S. Attorney's Office confirmed in a statement that it had asked U.S. District Court Judge
Charles Breyer to dismiss the indictment but also did not say why.[15][16][17]
In April 2015, FedEx acquired their rival firm TNT Express for 4.4 billion ($4.8 billion; 3.2 billion) as it looks
to expand their operations in Europe.[18][19]
FedEx Ground (Green "Ex"): Guaranteed day-definite delivery within Canada and the United States at a
cost savings as compared to time-definite FedEx Express. Uses a large fleet of trucks which are owned by
the independent owner/operators and drivers are independent contractors who control individual delivery
routes and territories. Formerly Roadway Package System (RPS).[22]
FedEx Home Delivery: A division of FedEx Ground, FedEx Home Delivery specializes in residential
delivery Tuesday through Saturday and offers delivery options to provide more flexibility for
residential recipients. The logo includes a drawing of a dog carrying a package . FedEx Home
Delivery only operates in the United States. In the US it is not uncommon for Home Delivery
packages to be delivered by standard Ground trucks. To make up the difference, FedEx Ground in
Canada performs the business deliveries and residential deliveries.[23]
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FedEx SameDay City allows a between: Standard, providing pickup by noon and delivery by the end of the day, or
Priority, providing delivery within 2 hours. FedEx SameDay City is currently expanding in all major cities across
the country and is planning on becoming its own operating unit in the next five years.
SCAC codes
The Standard Carrier Alpha Code (SCAC) is a unique code used to identify transportation companies. It is
typically two to four alphabetic letters long. It was developed by the National Motor Freight Traffic Association in
the 1960s to help the transportation industry for computerizing data and records. FedEx's codes include:
In 2005, FedEx was among 53 entities that contributed the maximum of $250,000 to sponsor the second
inauguration of President George W. Bush.[29][30][31]
During the first three months of 2010, FedEx spent nearly $4.9 million lobbying the federal government (UPS,
FedEx's main competitor, spent $1.6 million on lobbying over the same period), a 4% increase from the
$4.7 million spent during the last quarter of 2009, but more than twice what it spent on lobbying during the first
quarter of 2009.[32]
Advertising
Some of FedEx's ad campaigns:[34]
John Moschitta ad
In 1981, their advertising firm Ally & Gargano hired performer John
Moschitta, Jr., known for his fast speech delivery, to do an ad for
Federal Express titled "Fast Paced World". This single commercial
would be cited years later by New York as one of the most memorable
ads ever.[35]
Motorsports
From 1997 to 2002, FedEx was the title sponsor of Champ Car
World Series when it was known as CART. The series was
known as the "CART FedEx Championship Series", which led FedExForum in Memphis, Tennessee.
to the official "Champ Car" designation in reference to the fact
they were the FedEx Championship.
FedEx became the sponsor of the No. 11 NASCAR Sprint Cup
Toyota owned by Joe Gibbs Racing and driven by Mike Bliss,
Jason Leffler and Denny Hamlin in 2005. FedEx uses four
(predominantly black) paint schemes to showcase its different
products (Express, Freight, Ground, and Office), and in 2005
also ran a special scheme to promote a charity event at the
FedEx St. Jude Classic golf tournament. The 11 car has been
driven on a permanent basis by Hamlin since 2006.
FedEx previously sponsored the Formula One team McLaren.
Prior to that FedEx had sponsored Ferrari, Benetton, and
Williams F1. FedEx does not currently sponsor any F1 team. Denny Hamlin driving the FedEx-sponsored
No. 11 car at the 2012 Kobalt Tools 400
Football
From 1989 to 2010, FedEx was the title sponsor of the Orange Bowl, played in Miami, Florida.[36]
FedExField, home of the National Football League's Washington Redskins in Landover, Maryland[37]
Other sports
FedEx sponsors FedExForum, home of the NBA's Memphis Grizzlies and the University of Memphis men's
basketball team.[38]
FedEx sponsors the Heineken Cup in Rugby [39]
Beginning in 2007, FedEx became the title sponsor of the FedEx Cup, a championship trophy for the PGA
Tour.[40]
FedEx is the Main Sponsor of the UEFA Europa League since 2015.
See also
Cast Away
Federal Express Flight 705 (attempted hijacking)
Freight company
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Package delivery
Top 100 US Federal Contractors
References
1. "FedEx 2016 Annual Results" (http://annualreport.van.fedex.com/2016/docs/FedEx_2016_Annual_Report.pdf) (PDF).
Retrieved 2016-12-14.
2. "FedEx in Memphis (http://news.van.fedex.com/files/FedEx%20in%20Memphis.pdf)". FedEx. Retrieved on February
28, 2010.
3. "Connecting People and Possibilities: The History of FedEx" (http://about.van.fedex.com/our-story/history-timeline/hist
ory/). FedEx. FedEx. Retrieved 24 February 2016.
4. Delaware Department of State, Division of Corporations, Online Services (https://delecorp.delaware.gov/tin/controller)
Archived (https://web.archive.org/web/20110721035421/https://delecorp.delaware.gov/tin/controller) July 21, 2011, at
the Wayback Machine.; File No. 2803030.
5. FedEx History | About FedEx (http://about.fedex.designcdt.com/our_company/company_information/fedex_history).
About.fedex.designcdt.com. Retrieved on July 11, 2011.
6. " The Marketing Doctor Says: FedEx Does It Again!" (http://blog.marketingdoctor.tv/2008/06/03/marketing-101-fed-ex.
aspx) Marketing Doctor Blog. June 3, 2008.
7. "FedEx Ditches Kinko's" (http://www.businessweek.com/innovate/content/jun2008/id2008069_075908.htm) Business
Week. June 3, 2008.
8. Ron Da Parma (December 27, 2007). "IRS says FedEx may owe $319 million" (http://www.pittsburghlive.com/x/pittsbu
rghtrib/business/s_544387.html). Pittsburgh Tribune-Review. Retrieved 2008-01-03.
9. 'Brown Bailout?' Hardly (http://factcheck.org/2009/07/brown-bailout-hardly), FactCheck.org
10. "UPS, FedEx "Brown Bailout" battle rages on" (https://web.archive.org/web/20100616010653/http://blog.fleetowner.co
m/trucking-straight-talk/2010/06/10/ups-fedex-brown-bailout-battle-rages-on/). Fleetowner.com. Archived from the
original (http://blog.fleetowner.com/trucking-straight-talk/2010/06/10/ups-fedex-brown-bailout-battle-rages-on/) on June
16, 2010. Retrieved June 16, 2010.
11. "FedEx Corp. Announces Henry J. Maier to Succeed David F. Rebholz as President and CEO for FedEx Ground" (http://
www.fortmilltimes.com/2013/01/14/2435327/fedex-corp-announces-henry-j-maier.html). fort mill times. Retrieved
January 14, 2013.
12. Moyer, Justin (July 18, 2014). "FedEx indicted for drug dealing. Not a delivery guy the whole company." (http://ww
w.washingtonpost.com/news/morning-mix/wp/2014/07/18/fedex-indicted-for-drug-dealing-not-a-delivery-guy-the-whole
-company/). Washington Post.
13. "FedEx Indicted For Its Role In Distributing Controlled Substances And Prescription Drugs" (http://www.justice.gov/usa
o/can/news/2014/2014_07_17_fedex.indicted.press.html). U.S. Department of Justice. July 17, 2014.
14. Elias, Paul. "FedEx charges raise online pharmacy issues" (https://news.yahoo.com/fedex-charges-raise-online-pharmacy
-144213122.html). Yahoo. Retrieved 2 August 2014.
15. "A trial accusing FedEx of knowingly shipping illegal prescription drugs just ended suddenly" (http://www.businessinsid
er.com/a-trial-accusing-fedex-of-knowingly-shipping-illegal-prescription-drugs-just-ended-suddenly-2016-6). Retrieved
2016-08-24.
16. Beckerman, Josh (2016-06-20). "FedEx: Justice Department Dismisses Charges Over Online Pharmacy Shipments" (http
s://www.wsj.com/articles/fedex-justice-department-dismisses-charges-over-online-pharmacy-shipments-1466201256).
Wall Street Journal. ISSN 0099-9660 (https://www.worldcat.org/issn/0099-9660). Retrieved 2016-08-24.
17. "Feds Drop Charges Claiming FedEx Knowingly Trafficked Illegal Prescription Drugs" (http://fortune.com/2016/06/20/d
oj-fedex-illegal-online-pharmacies/). Fortune. 2016-06-20. Retrieved 2016-08-24.
18. "FedEx to buy rival TNT Express for 4.4bn" (http://www.bbc.co.uk/news/business-32200600). BBC News. 7 April
2015.
19. "FedEx to buy Dutch Delivery Company TNT for 4.4 billion euros" (http://news.biharprabha.com/2015/04/fedex-to-buy-
dutch-delivery-company-tnt-for-4-4-billion-euros/). news.biharprabha.com. Reuters. 8 April 2015. Retrieved 8 April
2015.
20. The Sneeze: The Man Behind the FedEx Logo (http://www.thesneeze.com/mt-archives/000273.php), November 16,
2004
21. "WATS Scheduled Freight Tonne Kilometres" (http://www.iata.org/ps/publications/wats-freight-km.htm). International
Air Transport Association. 2006.
22. FedEx Ground | About FedEx (http://about.fedex.designcdt.com/our_company/company_information/fedex_ground).
About.fedex.designcdt.com. Retrieved on July 11, 2011.
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External links
FedEx Index of national homepages (http://www.fedex.com/?locati
on=home&link=5) Wikimedia Commons has
media related to FedEx.
Business data for FedEx: Google Finance (https://www.google.com/fi
nance?q=FDX) Yahoo! Finance (https://finance.yahoo.com/q?s=FD
X) Reuters (https://www.reuters.com/finance/stocks/overview?symbol=FDX) SEC filings (https://www.se
c.gov/cgi-bin/browse-edgar?action=getcompany&CIK=FDX)
Categories: Companies in the Dow Jones Transportation Average FedEx Express mail
Logistics companies of the United States Transportation companies of the United States
Trucking industry in the United States American companies established in 1971
1971 establishments in Tennessee Companies based in Memphis, Tennessee
Companies listed on the New York Stock Exchange
Multinational companies headquartered in the United States
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