Originally published at: Commentary: Why RPS is the most successful transportation startup ever - FreightWaves
By Satish Jindel On Monday, FedEx Corp. spun-off its Freight division. What is left is the combined network of FedEx Express and FedEx Ground. It’s an opportune time to remember that FedEx (NYSE: FDX) would be a distant third-place parcel carrier in the U.S. market without the acquisition of RPS as part of the $2.4…
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Since Satish is taking us on a stroll down Memory Lane, there were some things worth noting that preceded the RPS acquisition.
When I ran US Marketing, Fred had us try to address our ground disadvantage with a product that was in between Express and Ground called ExpressSaver. We simply could not price it low enough to be profitable and competitive in the short zones and light weight packages - where most of the volume was at the time. We tried to target higher zones and higher weights, but tech was such at the time that it was difficult, if not impossible, for many shippers to segment that finely.
I remember sitting at Ron Ponder’s (CIO at the time) kitchen table on Christmas Eve with my gigantic Mac computer showing Ron what is was that Fred wanted him to program. ExpressSaver never got real traction.
Later we launched the Catalog Program that generated $250M in revenue (may have actually peaked at $400M) but we did not have the density in residential to make it work without a lower cost model. My engineering team came up with a model for resi using independent drivers that was remarkably similar to RPS - and the gig delivery companies of today. Fred hated it. Looking back, it was a different point in time and I can now better appreciate his point of view.
As Confucius would say, “No matter where you go, there you are.” This is a long way of saying that I agree with Satish that RPS is the most successful transportation start-up ever. I was not at FedEx when the RPS deal happened, but in my opinion, acquisition was the only way for FedEx to remain the powerhouse it is today. You don’t have to squint too hard to imagine that FedEx might have been acquired - or worse - if it were not for the RPS acquisition.
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E. Roe Stamps IV delivered a brief, funny, and insightful speech at the 2026 Ohio State University Spring Commencement. One key piece of advice he shared was to “Join Winning Teams—surround yourselves with excellence and strong collaborative environments.”
This deeply resonated with me. My own career in transportation and logistics began over 40 years ago in March 1985 at the RPS Columbus hub on Frank Road. I served in various operational roles through 1997, moving from Columbus to RPSAir (PGH), and finally to Charlotte. Throughout my entire tenure, being an RPS employee felt like being part of something much bigger than just a job. No company had ever successfully competed directly with UPS; the industry was a graveyard of those who had tried. Following Daniel J Sullivan’s vision and leadership, we worked long, hard hours and took immense pride in every milestone we hit.
I did not fully grasp the true scope of our legacy until I attended the RPS Reunion on March 11, 2023, in Pittsburgh. The pride amongst the hundreds of attendees was palpable. We all left that night with a deep sense of satisfaction, knowing we helped build a pioneering company that introduced many, many innovations to the parcel industry—including barcode package tracking, which did not exist before RPS.
We were truly part of a winning team, surrounded by brilliant, collaborative colleagues driven for success. For that reason alone, RPS was the greatest startup of all time—a sentiment powerfully reinforced by the numbers Satish presents in the article.
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While I have great respect for Satish, there is one glaring error in his commentary. Dan Sullivan was not the founder of Roadway Package System. He was not the single source of knowledge and drive. RPS was founded by incredibly smart and very brave people – lots of people. Bram Johnson, Steve Handy, Ivan Hofmann, Ed DiSalvo, Tom Warren, Paul Callahan, Mary Coulter, and legions more! Everyone from package handlers to vice presidents, customer service reps to contractors, and everyone in between. We were the little engine that could, because failure just wasn’t part of our DNA. The geniuses and out-of-the-box thinkers at RPS created the barcode for packages and state-of-the-art conveyor systems, and they hired leagues of hard-working employees who believed in the mission. People may think that start-ups were invented by the tech industry, but we all know that we worked at a start-up before that was the cool thing to do! Yes, Dan deserves his share of praise, but not all of the praise. It was efforts – both big and small-- made by tens, then hundreds, then thousands of dedicated employees and contractors. And I’m sure I can speak for all of my former colleagues when I say, we’d do it all over again in a minute!
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I was hired as an analyst (employee #7) for “Roadway R&D” in 1984 - a full year before the successful launch of Roadway Package System. From the start, the emphasis was on a new approach and bringing change to the marketplace. I vividly remember one day when we were confronted with a particularly difficult roadblock in planning. The entire team was brought together and we brainstormed solutions. Company rank, years of experience, current role didn’t matter - all that mattered was what ideas each person could bring to the table. The roadblock was overcome and we celebrated as a team. Of course, there were also times when the pace was exhausting and challenges seemed daunting. Meeting and surmounting those challenges to create a game changing entry into an industry that had high barriers to new entities has been one of the most satisfying accomplishments of my career. Many of my peers from that era feel the same. In addition, I believe that team spirit is one of the lasting legacies of RPS and why so many RPS veterans look back on the experience positively.
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