Feeds

Kozmo dumps Houston and San Diego

Delivery dotcom cuts 120 staff

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Silicon Alley delivery dotcom Kozmo has ditched its Houston and San Diego businesses and cut around five per cent of workers.

The company said the service, which delivers products such as tobacco, food, videos and medicine ordered through its Website to customers in one hour, failed to take off in these two cities. The move results in around 120 staff cuts at the three-year-old company.

Last June Kozmo ditched plans to IPO and cut 3,000 staff. Talks to buy rival Urbanfetch also fell through in October - days later Urbanfetch abandoned its consumer online delivery service to focus solely on what it said was the more lucrative corporate delivery business.

"We're no different to any traditional retailer," a representative told The Register today. "We are constantly evaluating our markets."

She added that Kozmo's top markets were currently New York and Seattle, followed by San Francisco, Boston and Washington. The company now operates in nine cities.

Its largest selling items have changed from entertainment to food, and its average order has risen to $30 - from $10 at this time last year. It also expects to announce details of its next round of investment within the next month.

Kozmo claims to serve 400,000 punters either too lazy or too busy to go out and shop. ®

Related Stories

Urbanfetch and don't carry
Kozmo.com delays IPO
Streamline.com turns into Thanksgiving turkey
Post Office takes on e-delivery upstarts

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.