4 ms·

Kozmo did not charge delivery fees and I believe had their own warehouses/inventory. I'm not sure what I think about the economics of these delivery companies,

• bootload 11y ago
  "Kozmo did not charge delivery fees and I believe had their own warehouses/inventory." I'd forgotten about the warehouses. Kozmo might have worked if the market was as big as it is now ... and possibly looked at ways to become profitable. "in 1999 the company had revenue of $3.5 million, with a resulting net loss of $26.3 million.[5] The company raised about $250 million," There was a lot of VC money thrown around but the number of employees and scale... 1100 employees and 18 locations. I would have thought it would have been best to win high values cities then expand gradually.
  • alaskamiller 11y ago
    DoorDash has pulled off the trick of charging 20% to the restaurants then $7 to the customer for the delivery. So really they're a courier service paired with a lead gen service instead of kozmo wanting to be a store that delivers. The only other model that works is a pizza shop where they can make the products and deliver too. Waiter.com here in Silicon Valley must be so pissed that ten years in the game they're still outshined.