Feeds

Kozmo.com makes its last delivery

A sad day for Manhattan's modern urbanists

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

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

Intelligent flash storage arrays

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.