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What is Kozmo?

What is Kozmo?

“Kozmo” refers to the online company that offered free delivery for various goods like books, magazines, food, and video games, among others.  It was founded back in 1998 as “Kozmo.com” and was one of the major players of the so-called “dot-com” boom, referring to the increased hype and activity among online business players and retailers.  The founders of the company were Joseph Park and Yong Kang of New York, and they started out a free delivery service for a variety of small products across some of the major cities in the U.S.  Due to bankruptcy, though, Kozmo.com eventually shut down by April of 2011.

The basic business concept of Kozmo is to offer door-to-door delivery of purchased items online.  There is no delivery charge or service fee involved for all purchases made.  The company basically believed that they would earn a profit from the purchased goods from their online store.  They also believed that they could survive without charging customers for the delivery of purchased goods since they did not have actual, retail stores to maintain.  At the start of the business venture, Kozmo.com was able to attract many online customers as they offered a variety of products.  Some ordered food while others purchased simple items like DVDs and books.  All these were delivered to people’s homes free of charge.  Delivery was also done through different modes like bikes, cars, and trucks.  Some items were also delivered to people’s homes through public transportation.  Another great benefit that people received from purchasing through Kozmo.com was that the delivery of goods would only take an hour. And because of this quick service, many people became regular customers of the online company.  The company also grew and made lots of money at the peak of the Internet revolution, and this resulted in the establishment of offices in 18 different locations and major cities across the U.S.

Kozmo’s business model eventually collapsed over time as it was not able to make enough money to continue its huge operations in major cities.  Critics have always argued that this particular company couldn’t make a profit from the sale of purchased goods only.  By April of 2011, the operations of Kozmo.com shut down leaving many employees jobless and disgruntled.

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Posted by Erwin Z on Dec 12th, 2012 and filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response via following comment form or trackback to this entry from your site