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The new holding company began operations in January 1998, with the acquisition of Caliber System Inc. On October 2, 1997, FedEx reorganized as a holding company, FDX Corporation, a Delaware corporation. In 1994, Federal Express shortened its name to 'FedEx' for marketing purposes, officially adopting a nickname that had been used for years. In 1988, it acquired one of its major competitors, Flying Tiger Line, creating the largest full-service cargo airline in the world. The company grew rapidly, and by 1983 had a billion dollars in revenues, a rarity for a startup company that had never taken part in mergers or acquisitions in its first decade. Smith cited his reasons for choosing Memphis International Airport included its location near the mean population center of the country and its lack of frequent inclement weather. He began formal operations in 1973, when he moved operations to Memphis. While his professor didn't think much of the idea, Smith pressed on. He drew up the company's concept in a term paper at Yale, in which he called for a system specifically designed for urgent deliveries. The company was founded in Little Rock, Arkansas in 1971 as Federal Express Corporation by Frederick W. FedEx's air shipping services have made its main hub or known as the 'Superhub' at Memphis International Airport, the busiest cargo airport in the world by 2020 and Hong Kong as second-busiest cargo airport in the world behind Memphis.ДЇedEx's first van displayed at the FedEx World Headquarters In addition, FedEx has purchased the naming rights to FedExField of the NFL's Washington Football Team and FedExForum of the NBA's Memphis Grizzlies. ДЇedEx's prominence in both the United States and the world have made it a common topic in popular culture, with examples including the film Cast Away as well as some of its marketing slogans (most famously 'when it absolutely positively has to be there overnight'). FedEx is also one of the top contractors of the US government and assists in the transport of some United States Postal Service packages through its service FedEx SmartPost. Since then, FedEx also started FedEx Ground, FedEx Office (originally known as Kinko's), FedEx Supply Chain, FedEx Freight, and various other services across multiple subsidiaries, often meant to respond to its main competitor, UPS. FedEx today is best known for its air delivery service, FedEx Express, which was one of the first major shipping companies to offer overnight delivery as a flagship service.

The name 'FedEx' is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company which focuses on transportation, e-commerce and business services which is headquartered in Memphis, Tennessee.

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