Feeds

Kozmo.com makes its last delivery

A sad day for Manhattan's modern urbanists

  • alert
  • submit to reddit

Build a business case: developing custom apps

Kozmo.com has joined the dotcom delivery slaughter by shutting its doors and laying off more than 1,000 staff.

Yesterday the CEO of the Silicon Alley Net outfit, which promised to deliver a range of items such as pizza, videos or medicine within one hour, blamed the company's death on Internet investor jitters and the outfit's founders.

"Given more time and more hospitable market conditions, Kozmo would have succeeded in rounding the corner and would have continued to grow," said Gerry Burdo. He also blamed "some decisions made early in the company's development."

Kozmo, started by a 26-year-old entrepreneur from his Manhattan apartment in 1998, said yesterday it would liquidate its assets and lay off all 1,100 staff with immediate effect. The company operated in nine cities and at one point had 3,300 employees.

But at its peak Kozmo was ploughing through $30 million per month, a situation that couldn't last amid the downward spiral of the dotcom market. Last summer it withdrew its IPO and started adding a delivery fee for certain orders. In January it was forced to close its businesses in Houston and San Diego with the loss of more than 100 jobs.

In December it claimed to be profitable in three cities - New York, Boston and San Francisco, and managed to secure $25 million in investment. But despite the company's cost-cutting exercises, this amount was not enough to see the outfit through to profitability.

In total the Net outfit, whose carrier bags were a commonly seen fashion accessory touted by modern urbanists in Manhattan, burnt through $250 million in investment - including $60 million from Amazon and $25 million from Starbucks.

Kozmo had witnessed the demise of many of its e-grocer delivery rivals. Last autumn Urbanfetch.com said it was ditching its consumer B2C business, while Massachusetts-based online grocery delivery service Streamline.com announced it would close in November. Earlier this year Webvan ditched expansion plans after losses doubled for the fourth quarter. ®

Related Stories

Kozmo dumps Houston and San Diego
Urbanfetch and don't carry
Streamline.com turns into Thanksgiving turkey
Kozmo.com delays IPO
Boo.com tops 100 e-business list

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
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
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
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.