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Catching the Kozmo Craze

Kozmo.com delivers the goods--from Ben & Jerry's to Good WIll Hunting--all within an hour

This planning seems to be a recipe for success.

"Kozmo has the opportunity to become the Polaroid of e-commerce," said Danny Rimer, an Internet analyst with Hambrecht & Quist in a San Francisco Chronicle article, October 18, 1999.

With strong financial backing and new corporate management drawn from companies such as AT&T, Coca-Cola, FedEx, and UPS, Kozmo.com is well positioned to continue it impressive growth performance. In October, the company raised $28 million in its first official round of venture capital funding. Then in January, a group of investors led by Amazon.com pumped another $100 million dollars into the company.

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Since the start of the New Year, Kozmo also managed to secure key corporate partnerships with Ticketmaster's Online-City Search and with Starbucks.

The alliance with Ticketmaster will make Kozmo the exclusive immediate delivery provider for the citysearch.com network of city guides. Information about Kozmo.com will also be featured prominently on the citysearch.com website.

The partnership with Starbucks also has tremendous potential, given the coffee chain's 2,400-plus U.S. stores in the United States and the fact that 90 percent of its customer base is online.

In addition to carrying a variety of packaged coffees and other Starbucks products, Kozmo.com is studying the possibilities of delivering hot beverages to customers.

Kozmo's Weddleton says the firm is serious about growth: The company plans to be in Chicago and Atlanta soon, and expects to cover 30 locations by year's end.

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