The company employs a hub-and-spoke distribution system in which all orders are processed through the company's Allston-based distribution center, where bicycle couriers bring orders to customers' doors within an hour.
Couriers are given raingear, helmets, bags and cellular telephones to communicate with company dispatchers. They are also given both health and dental benefits.
"I love it…it's phenomenal," said one courier, who asked to be identified as "D," after his second day on the job.
On the Street
To be sure, the company faces competition from a growing group of Internet-to-home delivery companies like Homeruns.com, a home grocery delivery company. But Kozmo's advantage, some say, derives from the quick turnaround time between when an order comes in and when it gets delivered.
Moreover, since its inception, Kozmo has steadily expanded its product line to include profitable retail, electronic, snack and convenience products.
"Analysts are constantly looking at new products that will work within this business model," Weddleton says, adding that microwaveable foods and sandwiches are two likely areas for expansion in the near future.
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