TechnoMagicians Blog

KoZmo (not this KoSmo) made the 3rd spot on CNet's top 10 dot-com flops:

The shining example of a good idea gone bad, online store and delivery service Kozmo.com made it on our list of the top 10 tech we miss. For urbanites, Kozmo.com was cool and convenient. You could order a wide variety of products, from movies to snack food, and get them delivered to your door for free within an hour. It was the perfect antidote to a rainy night, but Kozmo learned too late that its primary attraction of free delivery was also its undoing. After expanding to seven cities, it was clear that it cost too much to deliver a DVD and a pack of gum. Kozmo eventually initiated a $10 minimum charge, but that didn't stop it from closing in March 2001 and laying off 1,100 employees. Though it never had an IPO (one was planned), Kozmo raised about $280 million and even secured a $150 million promotion deal with Starbucks.

They also made 2nd on CNet's top 10 tech we miss:

At the height of the dot-com bubble, you could get a candy bar delivered to your door for the price of…a candy bar. Kozmo, 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.

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