Good technologies and products usually survive; poor ones usually go extinct. But not all of the technologies and tech products that have swirled down the drain of the tech gene pool deserved their fate. Kozmo.com is an tech that we thought it will be us forever, but that unfortunately it has gone the way of the dodo.
Kozmo.com (1998-2001)
An online store and delivery service, promised fast, friendly delivery of almost anything: a DVD rental, a bag of groceries, or just a single pack of gum. It was incredibly convenient and a heck of a bargain. It was also too good to be true. The cost of the small-time deliveries contributed to the demise of this great idea.The founder of this company are Joseph Park and Yong Kang, they started the business in March 1998 at New York City. Kozmo.com is one of the top 10 tech we miss which hailed by CNET.com.
In February 2000, it entered a five co-marketing agreement with Starbucks in order to promote its services in their coffee shops by paying $150 million. But in the end Kozmo.com ended it services in March 2001 after paying out $15 million.
Kozmo.com (1998-2001)An online store and delivery service, promised fast, friendly delivery of almost anything: a DVD rental, a bag of groceries, or just a single pack of gum. It was incredibly convenient and a heck of a bargain. It was also too good to be true. The cost of the small-time deliveries contributed to the demise of this great idea.The founder of this company are Joseph Park and Yong Kang, they started the business in March 1998 at New York City. Kozmo.com is one of the top 10 tech we miss which hailed by CNET.com.
In February 2000, it entered a five co-marketing agreement with Starbucks in order to promote its services in their coffee shops by paying $150 million. But in the end Kozmo.com ended it services in March 2001 after paying out $15 million.
In July 2000, at the height of its business, the company expanded to seven cities. It was familiar with college student, young professionals, and the urbanites, but soon the company still went out of business. It is because later they found that it was cost too much to deliver a DVD and a pack of gum. Eventually a $10 minimum charge was introduced, but that did not stop it from closing in March 2001. Before the layoffs, Kozmo.com had filed an IPO with the SEC, but it never went public. Consistent with documents filed with the SEC , the company had revenue of $3.5 million in the year 1999, with a resulting net loss of $26.3 million.
As a summary, although Kozmo.com had a great idea to have an online business, but their business still come to failure with the reason of they did not had a proper business plan. Without a proper business plan, Kozmo.com was too late to learn that its primary attraction of free delivery was also its causes of defeat.
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