March 30, 2022

We are thrilled to announce the launch of RocaSports on Instagram! Few places have better stories than the world of sports, yet sports news faces the same problems as regular news: Out-of-touch, inconvenient, and biased content that takes itself too seriously. We hope RocaSports is a refreshing alternative ⁠— just please look past the Buffalo Bills bias.

The miracle of overnight shipping started off as an undergrad paper in 1965. Today's Wrap tells you how Fred Smith, the founder of FedEx, made it a reality.

― Key Stories

Robo-Dog Manages Pompeii
Overview

• A robotic dog named Spot will be used to manage and research the southern Italian ruins of Pompeii
• Spot, designed by Boston Dynamics, will identify safety and structural issues at the ruins, including in underground tunnels pillaged by tomb raiders
• Spot will gather and record data to improve the monitoring of the ruins and “manage the safety of the site, as well as that of workers”
• Pompeii was a thriving Roman city buried by meters of ash when Mount Vesuvius erupted in 79 AD. Italy has been criticized for inadequate preservation of the site

Walmart Turns on Tobacco
Overview

• Walmart will stop selling cigarettes in some US stores
• The stores are in California, Florida, Arkansas and New Mexico. The announcement comes after a years-long debate over whether the company should sell tobacco products
• Walmart will replace the cigarette shelves with self-checkout kiosks, grab-and-go food, and candy
• National retailers like Walmart, which has 4,700 US stores, struggle to profit off the sale of tobacco goods relative to other goods because tobacco regulations and costs vary dramatically by state

Russia Moves Away from Major Cities
Overview

• Russia said it will “‘radically reduce military activity” around the Ukrainian cities of Kyiv and Chernihiv, which have been under attack for weeks
• Russia said the move is meant to “increase mutual trust, create the right conditions for future negotiations and reach the final aim of signing a peace deal with Ukraine”
• The US said people are “fooling ourselves” if they think Russia is easing up. A Pentagon spokesman said, “We believe that this is a repositioning, not a real withdrawal… we all should be prepared to watch for a major offensive against other areas of Ukraine”

FDA Approves Another Booster
Overview

• The US FDA approved a 2nd Covid booster for those who are immunocompromised or over 50 years old
• 72% of Americans between 18 and 64 are fully vaxxed and 30% are boosted; 89% of those 65+ are fully vaxxed and 60% are boosted
• Covid cases are at their lowest levels since last July
• It's unclear if the FDA will recommend 2nd booster shots for younger people. Scientists are divided over whether it would be beneficial

See yesterday's results below the Wrap!

 Popcorn

Culture & Sports 

• Do you believe in miracles? Tiger Woods played an 18-hole practice round at Augusta National on Tuesday, 14 months after his car wreck
• Community college enrollment has sunk since the start of the pandemic (down ~750k) while trade school enrollment has shot up
• OT redemption: The NFL is changing its playoff overtime rules so that both teams will get the ball even if the first team scores a TD

• Hot hand Cook: Apple's stock is on its longest win streak since 2003, having recorded 11 consecutive days of rising shares
• Out-of-this-world service! The first space hotel is set to open in 2027, featuring recreational activities that "you can't do on Earth"
• No country for job applicants: The number of job openings exceeds the number of unemployed people by 5M, the largest gap ever

• Salt Lake chillers: A new report from WalletHub found that Utah is the US' least-stressed state. Louisiana is the most-stressed
• A former Yale administrator confessed to stealing $40M in electronics from the university in a nearly decade-long scheme
• Jim Carrey was among those to excoriate the Academy for failing to intervene in the Will Smith incident, saying Smith should've been arrested
• Pluto's peaks, which have perplexed scientists for years, are now believed to be many ice volcanoes merged into one

― Roca Wrap

A Newsletter Exclusive

While an undergrad in 1965, Fred Smith submitted a paper proposing a computerized logistics company capable of providing overnight shipping. The paper allegedly received a C, but it became the foundation for FedEx – which Smith founded in 1971.

Smith was from a small town in Mississippi. He attended Yale, where he was in George Bush’s fraternity and friends with future presidential candidate John Kerry. Upon graduating in 1966, he joined the Marine Corps and deployed to Vietnam. Over 3 years of service, he received  2 Purple Hearts, a Bronze Star, and a Silver Star, the former for running through enemy fire to command his men into a counterattack.

Back in the US, Smith focused on business: In 1971, he used his family’s money to buy an Arkansas-based shipping company, which drove home the difficulty of delivering a package within days. He then set up Federal Express, which sought to provide reliable 1- or 2-day delivery. 
 
Federal Express put its HQ in Memphis, Tennessee, which had 2 major benefits: Proximity to US population centers and good weather, which meant flights were rarely canceled. In April 1973, the first 14 Federal Express flights took off from there and delivered 186 packages to 25 US cities. 

The company’s early months were rough: On one Friday in July 1975, it had just $5,000 in its bank account. Smith then won $27,000 playing blackjack in Vegas and by Monday the account had $32,000.

Smith ran Federal Express with a military mindset. “The leadership that’s taught by the military is the best, and it is the best for a very simple reason,” he said in 2007. “In all organizations, what you’re really talking about is how you withdraw discretionary effort from people around organizational goals.” He likened his managers to military officers. 

Federal Express earned its first profit in 1975, and took off from there. In the 1980s, it was growing at 40% yearly. In 1983, it became the first US company to hit $1B in annual revenue without merging with or acquiring another company. 

Compared to its main US competitor – UPS, which specialized in ground shipment – Federal Express focused on air freight. In the 1980s, it expanded into Europe and Asia; in 1989, it became the world’s largest cargo-only airline; in 1994, it became the sole US cargo airline with aviation rights in China. Amid this, it rebranded to its nickname: FedEx. 

In an interview, Smith said the 3 biggest impacts of FedEx have been as follows: It gave tech companies the logistics services they needed to supply and support their products; it allowed people to track their shipments in transit as though they were in a warehouse; and it made the transportation industry more competitive. 

Last year, FedEx made $84B; last month, it shipped 18M packages daily. Those numbers aren’t good enough, though, and the company’s stock has fallen 18% in the last year while UPS’ has jumped 28%. 

This Monday, amid concerns about the company’s performance, Smith announced he would resign as CEO. For the first time in 51 years, FedEx will not be led by the person who founded it. 

 Games

1. Which 2 NFL teams are tied for most Super Bowl wins?
2. Where did Stephen Curry go to college?
3. Who was the first WNBA player to dunk in a playoff game?
4. What golfer was known as “The Golden Bear”?

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