Feeds

Kozmo dumps Houston and San Diego

Delivery dotcom cuts 120 staff

  • alert
  • submit to reddit

The essential guide to IT transformation

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

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
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.