Worldwide Express - a Dallas based package and frieght shipping firm exceeded half a billion in annual revenue by partenring with UPS and FedEx following ites new business model. This model is more emphasized about adding value and enhancing relationships with customer.

1. For the
next generation of
great companies
February 22-28, 2013
IDEAS IN AC TION
After surviving significant loss,
Taking on the world SHIPPING SERVICE
Worldwide Express exceeds NAME: Worldwide Express
BUSINESS: Shipping
half a billion in annual revenue HEADQUARTERS: 2828 Routh St., Ste. 400, Dallas
75201
OWNERSHIP: Private
BY GHIANDA BECERRIL | STAFF WRITER TOP EXECUTIVE: David Kiger
EMPLOYEES: 500
Founded in 1995, Worldwide Express, a ANNUAL REVENUE: $530 million
Dallas-based package and freight shipping PHONE: 214-720-2400
firm, was started to help small and midsize WEB: wwex.com
businesses get the same shipping service
as larger companies.
Now it has more than 150 franchised G R E AT E S T C H A L L E N G E
locations throughout the United States,
averages 16 million shipments each year ‘We were in a very difficult
and has more than $500 million in annual position as most all of $300
revenue.
million-plus in system revenue
JAKE DEAN
“I became inspired to establish the model
doing an assignment while working at depended on DHL moving our
Trammell Crow. It became apparent to me
REACTION TIME: When David Kiger, CEO of Worldwide Express, realized the company was about to lose
packages from point A to B,’ said
that the market leader in express, FedEx,
treated small to medium-sized companies,
its shipping partner, he led a fast move to a new partner and a reinvestment in the company. CEO David Kiger.
or companies with multiple locations like
Crow, very differently than larger ones,”
said CEO and founder of Worldwide Ex- small-business customer on a nationwide network.” it turned out to be a very positive thing for
press, David Kiger. “I then quickly moved basis. It is truly differentiated in this mar- Worldwide Express fell from $330 million the long-term prospects of the company.“
to start Worldwide Express to focus on and ketplace. The premise of the model is to a year in run-rate sales to $160 million, all Kiger said Worldwide’s survival is based
target the underserved small to medium add value and enhance the relationship in the fourth quarter of 2008. That loss in clear and frequent communication and
sized business segment.” with the customer.” occurred during the busiest time of year belief in the business model.
The company has experienced consistent Although the company has now reached for the company and at a time when the “Nothing good can come from a lack of
growth since the start. In 2012 Worldwide over $530 million in revenue, in 2008 the economy was rapidly deteriorating. Com- communication,” he said. “I made sure all
Express was named the No. 1 employer in company lost over half of its total revenue. pany executives had to quickly decide what of the news was disseminated regardless
the United States for career advancement Worldwide became aware that its partner their next step would be, and partnered of whether it was good or bad. We knew
by glassdoor.com. DHL was significantly cutting back in the with their now main freight partner, UPS. where we were going and we believed in
“The company is full of qualified young U.S. market. The company quickly moved “After securing our light-pack business the power of our model.”
folks. They are dressed in business attire; forward with discussions with other pos- with UPS, we swiftly deployed our freight Back on track, company officials are hop-
they knock on doors and meet with compa- sible partners, UPS and FedEx, in order to program with a focus on less-than-truck- ing to reach $1 billion in revenue in the
nies and ask about their shipping,” Kiger get the company back on track. load,” Kiger said. This diversification was next four to five years.
said. “We were in a very difficult position as key for the company, he said, because it “It is only a matter of time before every
Ed Ross, CEO of Fidus Investment Cor- most all of $300 million plus in system rev- allowed franchisees to begin to replace the business owner finds themselves in a real
poration, said that, since its initial invest- enue depended on DHL moving our pack- suddenly lost revenue. do-or-die situation, perhaps several of
ment with Worldwide Express in August ages from point A to B,” Kiger said. “Their “We invested in the business because them over time,” Kiger said. “You have to
of 2007, he’s been pleased with the overall ultimate withdrawal from the U.S. acceler- of the strength of the management team be willing to make adjustments to the plan
growth of the company. ated things dramatically and we were left and the value proposition that Worldwide as situational dynamics dictate.”
“The Worldwide business model enables with very little time to get our customers provides a small business,” Ross said. “It
the company, as a system, to reach the and our shipments into our new partners’ was a tough period, but the reality is that gbecerril@bizjournals.com | 214-706-7124
Reprinted for web use with permission from the Dallas Business Journal. ©2013, all rights reserved. Reprinted by Scoop ReprintSource 1-800-767-3263.
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