Feeds

Kozmo.com makes its last delivery

A sad day for Manhattan's modern urbanists

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Internet Security Threat Report 2014

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
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.