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FedEx’s CEO Fred Smith Gambled In Las Vegas To Save The Company
Today, FedEx is one of the most important companies in the world in the courier and logistics services industry.
Besides UPS, FedEx is the only shipping company worth mentioning, at least in the United States. But in the 1970′s, FedEx was neither lucky nor successful. It was running out of money and consequentially out of business.
Before becoming a giant corporation with more than 141,000 employees, things were looking really bad for Frederick Wallace Smith, founder and CEO of Federal Express. In 1973, FedEx handled a grand total of 186 packages. In order to save his company Fred injected his entire inheritance, $4 million, to keep the company alive, in addition to $80 million from investors. Still, the company didn’t make sustainable income and faced a major problem; federal regulations forbade shipping companies from shipping documents, meaning that the industry was in trouble.
The company was about to go bankrupt; until Fred decided to go to the city of sins, Las Vegas. There, he made $27,000 at the blackjack tables and wired the winnings back to Federal Express, saving the company from going bankrupt. The result of betting money in Las vegas: Fred saved the company and helped it to stay afloat for a few more days, enough days to collect $11 million from more investors. Today, the company handles billions of packages globally with a net income of 1.184 billion (2010).
Was it destiny that helped Fred succeed? Or mere luck?
Today, FedEx is one of the most important companies in the world in the courier and logistics services industry.
Besides UPS, FedEx is the only shipping company worth mentioning, at least in the United States. But in the 1970′s, FedEx was neither lucky nor successful. It was running out of money and consequentially out of business.
Before becoming a giant corporation with more than 141,000 employees, things were looking really bad for Frederick Wallace Smith, founder and CEO of Federal Express. In 1973, FedEx handled a grand total of 186 packages. In order to save his company Fred injected his entire inheritance, $4 million, to keep the company alive, in addition to $80 million from investors. Still, the company didn’t make sustainable income and faced a major problem; federal regulations forbade shipping companies from shipping documents, meaning that the industry was in trouble.
The company was about to go bankrupt; until Fred decided to go to the city of sins, Las Vegas. There, he made $27,000 at the blackjack tables and wired the winnings back to Federal Express, saving the company from going bankrupt. The result of betting money in Las vegas: Fred saved the company and helped it to stay afloat for a few more days, enough days to collect $11 million from more investors. Today, the company handles billions of packages globally with a net income of 1.184 billion (2010).
Was it destiny that helped Fred succeed? Or mere luck?
