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What makes you assume something went wrong? It sounds like they were doing really well, but the bust hit them extremely hard, like it hit many others.
by rkuykendall-com 13y ago
What makes you assume something went wrong? It sounds like they were doing really well, but the bust hit them extremely hard, like it hit many others.
- ghaff 13y agoAt the risk of being snarky, the bust hit a lot of companies that didn't have a viable business model very hard. Snark off. There is a viable business model for deliveries given correct demographics, population density, etc.--and a willingness to pay for the incremental costs of the delivery. Works widely for some things (e.g. Pizza, Chinese food). Works as a niche for grocery delivery-usually in combination with a physical store presence of some sort. Delivery models work, usually as an adjunct to a physical store, but it's situational. Delivering individual video rentals like Kozmo did (among other things) is probably not one of those situations.
- ben1040 13y agoAccording to the S-1 for the IPO that never happened, they spent nearly as much on delivery as their total revenue. Seems like they weren't doing that well. http://www.secinfo.com/dRqWm.5c8t.htm#1jjz http://www.secinfo.com/dRqWm.5c8t.htm#1jjz