FedEx (US)

Selected FedEx advertising

FedEx is America's second largest package delivery service (after UPS), and one of the top three worldwide with a network that covers 220 countries as well as every address in the United States. It leads the market in overnight express delivery and claims to operate the world's largest all-cargo airline, in addition to its extensive ground service in North America. The group also controls the global retail chain FedEx Office - formerly Kinko's - with almost 9,000 outlets offering a range of business-oriented printing, copying and postal services. In 2015, the group announced plans to acquire European rival TNT Express for €4.4bn, significantly boosting its presence in that region. FedEx revenues for the year to May 2016 reached a record $50.4bn. Proforma revenues including a full year of TNT would have been almost $58bn. The company handled an average of 11.7m packages every day by land and by air during the year, including 25m a day over the peak holiday season. The company is still led by chairman & CEO Frederick W Smith, who founded Federal Express Corporation in 1971 at the age of just 27. Exploiting his keen interest in aviation, he set out to offer the first overnight air delivery service, initially covering 25 US cities. The business gradually expanded, adding an international service in the early 1980s. It moved beyond express delivery for the first time in 1998 with the purchase of Caliber System, which owned several ground freight services. Kinko's was acquired in 2004. Adbrands does not currently offer a business profile for this company but subscribers may access account assignments and contact information. The searchable account assignments database is available to full subscribers to premium services. Click here to access Adbrands account assignments (subscribers only); or see here for information on how to subscribe.

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Who are the competitors of FedEx? See Business & Consumer Services Sector for other companies

Capsule checked 23rd March 2017

Recent stories from Adbrands Weekly Update:

Adbrands Weekly Update 1st Mar 2018: America's gun laws have been in a bright and unwavering spotlight since the Parkland school shooting two weeks ago, and corporate responses to that horror finally began to filter through this week. More than 20 leading US brands have severed promotional ties and discount partnerships with the National Rifle Association in response to a social media campaign to which several survivors of the incident have given their support. They include Delta and United airlines, MetLife, Symantec, Best Western hotels and car rental operators Hertz, Avis and Enterprise. The NRA reacted to the outcry with (possibly ill-advised) outrage and defiance, accusing these brands of a "shameful display of political and civic cowardice" as well as a lack of patriotism. FedEx was one of the few companies to reject calls for a boycott. The NRA, it said, is one of hundreds of organisations with whom it has a discount partnership. "FedEx has never set or changed rates for any of our millions of customers around the world in response to their politics, beliefs or positions on issues." A few days later, however, FedEx's resolve seemed to have wavered a little, when it issued a new statement "clarifying" its position. It does not offer a discount to the NRA itself, but only to companies and individuals who are members. However, arch-rival UPS, it pointed out, does have a direct partnership with the NRA.

The furore puts companies in a difficult position. Even Warren Buffett, legendary investor and CEO of Berkshire Hathaway, but also a Democrat politically, weighed in on the issue. "I think it's a mistake to start getting personal views and trying to impose them on an organization," he told CNBC. "What the [boycott organisers] are doing is very admirable, but I don't think Berkshire should say we're not going to do business with people who own guns. I think that would be ridiculous." Perhaps the first truly constructive step forward came from retail chain Dick's Sporting Goods, which said it will no longer sell assault rifles or high capacity magazines at its Field & Stream specialist hunting goods subsidiary. Mainline Dick's stores had already stopped selling assault weapons in 2012 after Sandy Hook. Dick's also raised the age limit for purchase of any firearms in its stores from 18 to 21 years of age. Shortly afterwards, Walmart and Kroger's Fred Meyer chain followed suit in barring sales to under-21s. Both had already previously stopped selling assault weapons.

Adbrands Weekly Update 23rd Mar 2017: Ads of the Week "Dream". Longtime agency partner BBDO New York delivers a charming fantasy for global delivery giant Fedex. It's good to see that US borders remain open for robots, rocking horses and rollerblades.

Adbrands Weekly Update 9th Apr 2015: Delivery giant FedEx is to expand its presence in Europe with the acquisition of regional rival TNT Express for €4.4bn. The Dutch group is currently controlled by the Netherlands's main postal services supplier PostNL via a minority stake. An attempt by FedEx's US rival UPS to buy the business two years ago for €5.2bn was blocked by regulators on competition grounds, because UPS already had a significant presence in Europe. However, FedEx is much less established in the region and says it does not expect any such regulatory problems. TNT has around 12% share of regional deliveries, according to ING, more than double FedEx's 5%. The merger would catapult the combined business into second place ahead of UPS, which has 16%. Market leader DHL commands 19% share. 

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