Why FedEx Bet Their Entire Company In A Casino
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THE INSANE STORY OF FEDEX... FedEx employs well over half a million people worldwide, has a market cap of over $40 billion dollars, and delivers millions of packages every day in countries all over the world. But, in the early 1970’s, this future shipping empire depended on one man, $5,000, and a weekend in Las Vegas. This is the absolutely crazy story of FedEx...
Frederick Wallace Smith, founder of FedEx, did not get off to a good start in life. At the age of four his father passed away, and for the first 10 years of his life, Fred was afflicted with a type of childhood arthritis called Perthes disease that affected his hips, temporarily causing a loss of blood flow and affecting his ability to walk. Thus, Fred was forced to spend his early years in leg braces and use crutches to get around. And Fred faced bullying as a child because of his condition. However by his 10th birthday Fred had overcome this, and he not only was able to walk, but within a few years began to acquire a love for flying - something that would play a pivotal role in his future success. But during high school, Fred started his first small business, The Ardent Record Company, which he founded along with some friends. It started as a small recording studio in a garage, but eventually grew into a larger recording company which actually still operates to this day. However Fred left the company in 1962 to go to Yale University and study economics. In his junior year, Fred wrote a term paper where he proposed a business idea that he said could revolutionize the way goods were transported. Now at the time, packages were shipped throughout the US in the cargo holds of commercial airliners, and thus delivery schedules were at the mercy of the passenger airlines. This meant package delivery times were much slower and less predictable. So for people who had something to send urgently - for example medical supplies or legal documents, surely there had to be a better and faster way?
So Fred’s idea was to buy a fleet of jets, fly in the middle of the night whilst airports weren’t busy with outgoing flights, then sort the packages at one central hub, and deliver the packages from there by truck. Fred believed this idea of carrying small high priority packages at night would mean that companies and individuals could have their packages delivered in just 1 or 2 days, much faster than the current restrictive airline schedule. Fred was excited about his idea and handed in his college paper - however he ended up only getting a C grade from his economics professor, who told him that the idea wasn’t feasible and wouldn’t work. This is the story of how Fred Smith built FedEx, and turned it into a billion dollar shipping empire - whilst the FedEx story is undoubtedly a business success story, it's definitely not your typical business story, as it involves 'investing' (gambling) the company's remaining funds at the casino to try and save the business. Welcome to the crazy company history of FedEx (formerly Federal Express) by MagnatesMedia.
00:00 FedEx Story: Prologue
00:35 Chapter 1: The Vision
03:28 Chapter 2: Federal Express
07:25 Chapter 3: Crisis
10:50 Chapter 4: The Gamble
12:26 Invest In Art With Masterworks
13:26 Chapter 5: The Recovery
15:02 Short break: Thanks for watching MagnatesMedia
15:28 Chapter 6: The Political Partnership
17:30 The Final Chapter of The Fedex Story
Why FedEx Spent All Their Money On Blackjack 🎲
Why FedEx Bet Their Entire Company In A Casino
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ok
Can you talk about weekly shonen jump and how they were very successful
No
Ironic. I bet, in the future, you will talk about how the masterworks scammed everyone, even yourself in one of your video. 😂😂😂
Small thing but I noticed it: when you mentioned the Middle east you showed China, not a country in the Middle East
That pep talk Fred gave himself is a key to avoiding depression at obstacles and setbacks. Your plan may not work with the action; but it definitely WILL NOT work if you take zero action. Well done!!
💯 🙌🏽
I thought you were about to say some cringe like, "if you don't believe in yourself," "never give up," "you can't fail if you keep trying." Really refreshing to see a sensible comment for once.
He's definitely Forrest Gump
Union busting CEO with a self righteous attitude plus he has the lame name “Fred”.
I was a FedEx Driver. I asked for more uniforms over 20 times, were promised pay raises that we never got (they got me one once I got pissed and then took it away hoping I wouldn’t notice), lie about company finances so we will be happy with the little we do make, very little dollys we have to steal from eachother, scanners all need to be fixed but never are, made to do a lot of stuff we do not get paid to, holidays unpaid then given a “$100 Christmas bonus”, my truck had wires sticking out of the tire for three days before it was addressed, if you leave without a two week notice they keep your last paycheck, loaders suck at loading the trucks, my cousin & I told my boss three times about our upcoming weekend vacation and they wrote us up claiming we never told them, threatened to fire us once for finishing late (that once was our fault since we started late but still), didn’t start offering health benefits until years later, you lose the extra money you can make during peak season by delivering an excessive amount of packages if you have a helper, paychecks all the time wind up short (my record is 5 IN A ROW) ,we’re promised pay raises AGAIN down the road that we never got and they will lie and say you already have them (despite you can check the stubs for your daily rate online), customers will call and complain when you drop packages instead of putting them down because you have had enough, one truck made me physically sick from all the diesel fumes coming back into the cab, no radios in most trucks because they are punched out by the employees, you lose a scanner you pay for it with you already small wage, etc etc etc. FedEx is sick. Also no formal training driving the trucks. They have you help a driver to learn the scanner then “here’s the keys”.
Fedex is like my ex, no communication, no respect for my stuff, it never seems to come and somehow it makes me think it's my fault.
good one
Basically
😂😂😂
UPS is no better here in Puerto Rico. They tend to deliver to businesses after 5PM, when most offices are closing or closed .
💀
I actually work at the main FedEx Hub in Memphis. I've also met Fred once and seen him from afar a few times. He's a legend around here. That blackjack run quite literally saved this town. In the 70s, Memphis was de-industrializing like a lot of places, and was, frankly, circling the drain because it didn't have a big enough white-collar base to take up the slack. Fred swooped in and grew FedEx so much and so quickly that it (almost, AutoZone and the bond industry gave an assist) stopped memphis from becoming a complete basket case. However bad you think Memphis is, it would be several magnitudes worse without FedEx. Fred cares about this place and the people who live here, and thus is probably one of the few billionaires who's genuinely loved and respected by the general public, at least the general public in Memphis.
I also work there but at the old hub
When I moved to Memphis they told don't work there. They slave work you lol
Wow
I have a newfound respect for Fred and makes me feel even better being a FedEx Ground driver myself
Please don't be lol
@@worldpeace3219 don’t be like that
Thank you for your service.
I respect your enthusiasm. I used to be the same as well.
lol fed ex package handler here lol
I’ve been a FedEx Ground driver for a little over five years now. In that time I have made a lot of great connections/friendships. It can be a great job if you work for the right contractor. I also have a great route with people that treat me very well.
FedEx was hands down the worst company I've ever worked at. Extreme incompetence and disrespect.
Are there any downsides to your job?
@@ajaywurie1012 We start early in the morning and your hours depend on how efficient and where your stops are. That can also depend on how a contractor has things set up. Dogs can be a problem but most of mine are friendly. Some of our routes take a good amount of time to get to. I honestly have a pretty easy route in all honesty. As one of the other commenters said some people are a pain for no reason.
Bro that’s what I’m saying 💯
@@ajaywurie1012 yeah there certainly is when you get shot at working for them they send you right back out to same Route next day 😂
Can you imagine living in a time when you could randomly contact the Federal Reserve as a complete nobody just to pitch them a business idea??? 😂😂😂
He had $100m dollars.
I use to work in a FedEx airport location sorting packages. Hard work, but FedEx wasn’t bad to me overall. I always thought of them as a trucking delivery service more then an airline, so it’s fascinating seeing how much the airline portion was core to the business.
It's 2023 and some of Fred's original 14 Falcon 20 aircraft are still flying daily. I have spent many hours modifying and maintaining them. Many of the tools we use were designed and purchased by FeEx, still containing their logo. Sadly, their number is still ever decreasing and we scrapped one 3 years ago in order to keep the rest of the fleet flying. In terms of daily use commercial aircraft, they really are some of the oldest still operating. Their age testament to the manufacturer, Dassault. It's amazing how revolutionary his idea of flying parcels around in a dedicated fleet was. It change the entire world and is the foundation of the "next day delivery" system that we know of worldwide with many online retailers, couriers and postal firms.
That timeline was very interesting to watch. The first time I heard of FEDEX (Federal Express at the time) was at my very first full time job in 1975. I was told to send some documents, and I was told to use Federal Express. I had never heard of them, but it made sense to me that there was a company that could deliver items over night. God Bless Fred Smith. 🙏🏿
God bless God not moral man.
@@alexander2685 ... wut?
@Alexander God is a fictional character, Fred is, like you said. Mortal and real. Do you also "Thank God" when an amazing surgeon and their team save your or a loved one's life? Please actually READ the Bible and don't nitpick what you want to believe and what you think is real. If it's all real you also have to believe that Jonah was SWALLOWED WHOLE by a fish and lived INSIDE IT for 3 days straight. It's all fantasy just like a Harry Potter book.
@@alexander2685 ???
THERES A HUGE PART OF THIS LEFT OUT. Fred is/was a hero. He received a silver star. Americas third highest medal for valor while serving in the Vietnam war. Legit hero.
Lefty's don't like reality lmao. Magnate doesn't wanna be brandished a ""right-wing nutjob"" although his entire philosophy is capitalism not socialism
a hero for the americans, sure
Many people might not see him the same way.
@@vihaandumir1649 Noted. And when you’ve done multiple combat tours for your nation you can give me a lecture about this guy.
I heard of the time he was in trouble for running over someone.
My husband hears me watching this video and asks me if I was interested in hearing about FedEx’s history. I tell him not really but this guy is so good at storytelling that it makes me interested in all his videos.
"I don't understand and I don't want to. But I like someone going blahblahblah." Real American housewife
@@pinkimietz3243they say “interest” and you start talking about “understanding”. Sounds like you don’t understand how to read tbh.
@@Pharoah2 he’s just a incel
@@Skurtz901 My boy really just went with the slandering option
@@TypicalBrian420 always😈
I recently needed to ship scissors (I’m a hairstylist) from the uk, home to the west coast of Canada. FedEx was literally the only company that would ship anything sharp. My package went door to door in less than a day and a half. I was flabbergasted when I saw that it had arrived. I also shipped a separate package with the royal mail, it’s been two weeks and it’s still in the uk 😅
"Machine parts"... that's what is in the box.
Also used them to ship electric scooters
At this point any idea you present to a professor that says it's bad is actually a million dollar idea
C+ was legit for normal students, but the professor didn't know that Fred was a level S player due to his dad and his grandfather.
bouncing back from near bankruptcy at a Vegas casino shows unwillingness to give up..
it's funny how i watch every video from this channel not because am interested in the topic but because the person behind the mic, the person telling the story is good at his thing. so amazing. congratulations on your 600k subs you deserve the very best see you soon at 1m
Yeah but the UK accent sucks
@@Mithyexit One of the things I love the most about his videos is his accent.
he's so good at his thing... he cant even pronounce arkansas
@@madman1101 yet you still watched and boost his algorithm by commenting 😅
Ikr? I’m not the least not interested in FedEx, but if it’s made by MagnatesMedia, I know it’s going to be good. He never disappoints!! While he was talking about Fred, I found myself rooting for Fred. Great video!!
I read a history of FedEx a few years ago. His father set up a bus company in the south, his grandfather ran a steamship company on the Mississippi River. All three in transportation!
Fantastic content as always! Really respect the research and effort that gets put into these 👏
Really appreciate these successive uploads of high quality content. Happy new year everyone
Btw bro. Thanks for inspiring me to start my own channel. I've binged all your videos.
I wondered how his teacher reacted when that C grade idea in the end became very successful.
Goes to show how clueless most university professors are. If they were actually good at business, they wouldn't be teaching people but making big money instead.
Yep, if I listened to my piano teacher in college I wouldn't have become a piano teacher. But it's what I felt strongly I wanted and needed to do. I have had great success and I love my students. I'm glad I didn't listen to that teacher but I was grateful that it required me to see how badly I wanted to do something.
Great video, thank you for producing it!!
I found you this year and really enjoy your channel. I learnt a lot and your voice is great for storytelling. Happy New Year 🎉
Worked for fedex in early 2000's. Was a great place to work. Got vendor discounts like airfare and watches. Flew to Madrid in first class for 180. Good memories.
From the documentaries I've seen so far, they're amazing. I hope your channel or channels grow more.
I knew a guy who went college in LA, and told me he went to Vegas from time to time to make money for his tuition and expenses. I told him that shouldn’t work in the long run. Worked for me, he said.
No wonder I get the feeling that I'm gambling my package when FedEx is used 😂
i really like your editing style
Keep it up. Thank you for the information
I've been looking for a video on FedEx. Thank you magnates media!!
I find these videos so interesting. I believe I've watched almost all of them at this point. Keep it up!
Moral of the story "Never believe the experts and professors when they tell your idea won't work"
So glad to finally see one of your docs where the idea wasn't initially stolen from someone else. Great job!
Like I always say, your story telling is unmatched bro, keep it up
Love ur content!! Thank you for all that you do I feel so WELL VERSED watching your mini docs! Ha!
Every video is like a movie
You're one of my favorite channels every time you come out with another video biography trust me when I say I watch them.
Great documentary as always!
I must say the editing is incredible
Thanks you for efforts, you are appreciated!
Thank you for all of this phenomenal content! Keep it up!
I love these types of videos. If I was asked who is my fav youtuber I would say magnetsmedia and sunnyV2. I love u☺️☺️
Good job. Keep up the amazing work.
Great video man. Keep up the great content
The Washington Redskins' stadium being sponsored by FedEx makes a lot of sense. Neither delivers on Sundays.
Ha! Nice one!
Moral of the story: you got to be rich to make yourself even richer
People will never understand all the work involved to get your packages to destination. I worked as a Package Handler at FedEx for a Year and have never worked with people who take such pride in their work. The best Company I've ever worked for.
Thank you.
i’ve been working for fedex for 3 years and it’s horrible how easy it is to die here. No AC, or heating. People being overworked in these warehouses trying to load/unload packages at record rates due to management being unreasonable with standards.
@@good-tn9sr I'm sorry you work in bad conditions. Is there an OSHA you can contact?
@@arfriedman4577 No, because they need proof, but Fedex doesn’t allow cellphones or any electronics in their warehouses. I guarantee if we could get a recording of what goes on in our building we could get the place shut down.
@@good-tn9sr sadly it depends on where you work.
Your way of presenting, explaination is the best and mind blowing
I remember when this channel had less than 100k and 200k subs. Great job bro and long May it continue!
Excellent video! It reminds me of something I either read or heard: You can't fly like an eagle when you are surrounded by turkeys. That economics professor was a turkey - no doubt.
Video well done....I thought James Jani was alone in this game but I think I was wrong, you're killing it on this side as well. Your video about the levels of wealth was recommended to me by you-tube ,now I'm watching one by one of your videos 🤝🔥
Fantastic show me and the good looking one often listen to these whilst on the road in our motorhome/racetrack great shows keep up the good work love your work
That was a fantastic story to watch and learn from. Instead of theoretical topics and listening to boring motivational speakers who follow a script of what to do, what not to do... This story telling methodology was thrilling and much more impactful to learn from
9 out of 10 fedex packages are delayed for me. If a merchant lets me choose I never pick FedEx
9 out of 10 delayed? Try 9 out of 10 doesn't show up. Fuck FedEx, couldn't deliver a package if it was right across the street
@ILost MyMedic no kidding. I live 7 min from the distribution center, and on a main road, they are required to travel past my house. 2% chance of rain ooo thats a delay due to weather. I aught to record how many times they pass my house and say an attempt was made to deliver, yet my wife is home sitting in front of wall to wall windows and 24/7 cameras on property.
Noted
Love the videos bro!!
Love this vid keep up the good work
A great production from Magnates Media for sure.
Your videos are awesome... very educational and informative....Thank you and keep up the great work..... I just subscribed.....
This story is a reminder to never let anyone tell you an idea won't work. Other people can't see your vision the same way you do.
Well i have studied bussines stories for years now. Read 100s of books. And here is this guy just made my live a lot easyer. Thank you fot that. :)
The gamble played a so important part thats amazing.
I work at FedEx, and I like how I just got home from work and see this on my feed
You do a great job! Interesting stuff. 👍
19:24 - Every time Fedex adds a plane to their fleet, they hold a lottery amongst employees, and the winner gets to name the plane after one of their children...
That's pretty dope
15:30 A perfect example of the fact that regulations are not designed to help consumers, but rather to help already established businesses maintain their hold and prevent smaller startups from challenging them.
While in the midst of re-watching Nike Video at exactly @27:37 you say not only Subscribe but turn on Notification. That's how I stumbled here. I'm an entrepreneur from Kenya Thanking and Urging you to create more videos as it has really helped me understand the similarities of Entrepreneurial Culture. forgot to add...from recently working with FedEx (contract) what a coincidence😅
This is a unbelievable story! I used to work in a bookies so I know how hard it is to win when gambling!
Thanks for your channel. Very interesting to see how places that we all use daily, weekly etc got started, almost failed but came back strong.
your videos are awesome, you gained a subscriber :)
Keep Going! ❤️
Excellent production !
Keep up with the good work
This is an amazing story! A very remarkable person.
Great video 🔥🔥
John Frazer never disappoints with his videos,i see magnates media growing to millions of subscribers very soon
@MagnatesMedia Don’t know if you read my earlier comment several months ago about making a video about FedEx, but regardless, I am very glad you have 😊
Great content. Keep it coming.
Side note, it's AkranSAW, not "Ar-KansAS". It's based on a French word for the native people of the region.
Best documentaries ever💥
Very Inspiring 🔥🔥🔥
Love the video did you do a video on ups
I like how this was a nice and a interesting story about FedEx and great video man :]
Seems if you get a lower grade on your paper, then put it into a business 😌
Awesome video as always. Do one on Bojangles when you get a chance. 🙃
Real Talk... As a former employee of FedEx, I gaining a lot of wisdom, insight and inspiration from reading about his story before I left the company to venture out on my own.
I absolutely love these stories
These are the questions that keep me up at night.
Very interesting to watch. Thanks
Dang, you could make a movie out of this guy's life.
Your video editing is "God Level". Please share where did you learn to edit vidos that are god level
This was so good and interesting! I used to work for them and loved it
I wanna see something about DHL too 🤩
Great video yet again. One thing: Arkansas is pronounced ARK-in-saw, not AR-can-zis. Keep up the videos!
Phew… I thought I was the only one who noticed 😬
@@creid7537 it got me good when I heard it. Normally I don’t mind and won’t point it out but that one was bad haha
I was sitting here thinking "I hope no one from Arkansas watched and heard this or they would be ready to fight 🤣"
the video is awesome.Can I know which software you use to make the video.thank you.
Wow. Such a captivating story
I do love your videos
I really love ur channel ❤
I want a movie on this, going to the casino to save your business 😂
Never used FedEx before I just enjoying watching your videos keep the good work