Fred Smith, the entrepreneur who saved FedEx from bankruptcy by betting everything he had on the cards in Las Vegas.

Fred Smith, the visionary entrepreneur behind FedEx's success, has made headlines for his risky gamble that saved the company from bankruptcy in its early days. With an impressive fleet of 697 planes, 210,000 trucks and vans, and 600,000 employees, FedEx delivers 16.5 million packages daily to 220 countries and territories, establishing itself as a major player in the global delivery and logistics sector. Despite its current privileged position, the company faced obstacles and critical moments in its beginnings, one of the most notable being five decades ago when it was on the brink of disappearing. The revolutionary vision of a young Economics student at Yale University, Frederick W. Smith, gave birth to the idea of a courier company that would use planes and ground vehicles for fast deliveries of mail and packages. Despite initial lack of enthusiasm from his professors, Smith persisted with his idea and in 1971 invested a considerable sum of money, inherited and obtained from investors, to found Federal Express Corp, now known as FedEx. Despite modest beginnings, demand quickly grew, allowing the company to operate in multiple US cities in a short period of time. However, challenges soon arose. The increase in oil prices in 1973 had a negative impact on the company's operations, leading to significant monthly losses. Faced with investors' refusal to continue financially supporting FedEx, Smith found himself at a crossroads that led him to make an extreme and controversial decision: to use the company's remaining funds to gamble in Las Vegas. Luck was on Smith's side in the world of gambling, allowing him to return with enough money to keep FedEx operations running for one more week. Although this action has been controversial and criticized, Smith has defended it as a necessary act to avoid the company's imminent bankruptcy. This risky, though unconventional move, was a turning point that allowed FedEx to continue operating and eventually achieve profitability in 1976. Despite the criticisms and ethical doubts surrounding Smith's decision, some experts argue that his courage in taking extreme risks in critical moments was crucial for the company's subsequent success. In an increasingly competitive and volatile business world, the ability to make risky yet calculated decisions can make the difference between failure and triumph. As FedEx grew and established itself as one of the leading American companies, Smith earned respect in the business world, despite the controversies surrounding the company's beginnings. While the unconventional practices used by Smith and his team in FedEx's early years may draw criticism, some experts argue that in certain contexts and extreme circumstances, taking risks may be necessary to ensure a company's survival and growth. Ultimately, Fred Smith and FedEx's story serves as a reminder that the path to business success can be filled with obstacles, tough decisions, and moments of uncertainty. While Smith's actions may not be a model to follow in conventional terms of good business practices, his ability to take calculated risks and make bold decisions in critical moments has left an indelible mark on FedEx's history and the business world.