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Getting back to the core
"Kozmo started out as a business dedicated to getting consumers what they needed every day," he said. "It morphed form that into being superstore for everything you might possibly want, from books to CDs, and having deliveries as a tack-on. We're going back to the core." ~ http://money.cnn.com/2005/09/14/technology/kozmo_redux/index.htm http://money.cnn.com/2005/09/14/technology/kozmo_redux/index...
Some of the failed dot-com crash-outs from the late 90's had some interesting ideas that might have worked had they stuck with the core of the original idea? Can you think of any others? My case in point is a re-born kozmo as maxdelivery. The difference? (aside from taking $USD230M from VC's) ...
* charges for delivery reflect reality ($10 minimum order, and there's a $4.95 delivery charge for orders under $50)
* simplifying inventory (focus stays on DVDs, groceries and other daily needs)
* no VC's (company isn't beholden to investors who are more focused on growth than profitability)
* sticking to favourable geography with high living density of
Manhattan NYC (instead of having physical presence in 15 states)
Chris Siragusa has obviously learned his lessons the hard way. Do you know of other failed sites that could have been successful getting back to the core?
- epi0Bauqu 19y agoKozmo was great while it lasted in Boston. Movie & candy delivery right to Bexley on the cheap! The demand was there at their original low prices--not sure what it would be farther up the demand curve, i.e. if the price was significantly higher. I don't think the $10 minimum would hurt much (students can pool), but the $5 delivery charge might.