Kozmo.com was a venture-capital-driven online store and delivery service that promised fast, friendly and without delivery charged of anything from DVD rentals to Starbucks coffee in the United States. Kozmo.com well-known with the idea that you could order anything from it and get the delivery product in one hour with free of charged. The model targeted only large cities, especially New York and Boston. Items were delivered by employees with van, bikes or scooters. Unfortunately, it was failed and ran out of cash and as a result had closed on April 11, 2001.
There were few causes that make Kozmo.com failed:
1. Targeted to wrong customers
kozmo's greatest error with their customers occured when they stopped catering to their main client based on middle class collage-students. This was done so that could target more upscale clients who would order expensive products. "Indeed, kozmo ditch its collage-student customers who bring many business (pay a premium to have thousand of items) from DVD players to cotton swabs.
2. Cost
kozmo offered free delivery and charged competitive prices to its customers. It thought customer loved the service but the cost of delivery and warehousing were too high. Somemore, the company had hired about 1,100 of employees and there was a "big" payment.
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