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I Miss Kozmo.com
Yesterday I was thinking about the various dead dot-coms and the one that I really miss still sticks out in my mind.
Kozmo.com was so damn cool. The way that it worked is they had a warehouse in a tech heavy town like New York, Boston, Seattle, San Francisco and Washington, D.C . People would order their wares and rent some movies and the a small army of couriers on motor scooter and small car would deliver your good in under an hour. They had a deal with Starbucks so you could return your rental movies to drop boxes at almost ever Starbucks in town. The bad news was that they had to pay Starbucks $150,000,000.00 for this convenience. Yes that is the right amount of zeros. I wonder why they ran out of money
If you have ever been to Seattle you would know that we are talking about a hell of a lot of Starbucks. But Kozmo was more than just movies the were well stocked with what ever you could find in a convince store and the snack section of a super market. The could even deliver most house hold items, porn, video games, gifts and Beer. When I lived in Seattle at my old Dot Com in the Clinton era days of yore I did not have a car and it was wonderful except when I wanted to buy cold and heavy items like a pack of Redhook. They would not charge for delivery if you order over 15 worth of stuff if memory serves or if you ordered it in the morning. There was home delivery of groceries but there was nothing like the speed and pep of Kozmo.com. Like many dot-coms the idea would have probably worked if they actually controlled their spending rates and strove for a slower more controlled growth. Christ we were pissing away a half a million a month at my old dot-com.
I dated this girl who worked out at Microsoft miles away and she emailed me with a wish for some ice cream. She could not get away from her desk and I had Kozmo send over a container of Ben and Jerry's within the hour. She loved it. It was the best damn thing to using a Star Trek Transporter pad to order stuff.
The rumor was that the company was founded by two pot heads but they had a damn good thing going until they tried to expand beyond their saving and they expected new investment to pay current bills. They never came and they went poof. Ah well.
The 90s was wild era of non-stop optimism and the feeling that the future was becoming the present. Living in the tech boom in Washington state and seeing the George Jetson dot-com jobs emerge was a trip. It promised generation X kool-aid drinkers a exciting future and an actual livable wage for hard 60 hour work. Tech jobs were in demand and there was actually more work than tech workers.
Then the bubbles started popping and George Bush took the White House and an era was over. Now the dot-com days are only in India. Kozmo could not exist in America today and we are probably another decade away from the same tech optimism that made Kozmo possible.
Jake at October 2, 2003
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Comments
Damn. It feels kind of weird to be thinking about the "good old days" already. It's too soon, I'm too young :)
Posted by: Jay at October 2, 2003 6:08 AM
The problem with Kozmo, and the reason they died off is that their business model had huge holes in it. Aside from the insane fees they paid for movie drop-offs, the real problem was that they had no minimum for delivery.
That means if you wanted a donut delivered it cost them the same thing as if you had ordered two movies and five books.
They lost a fortune on all those $5 orders that required $30 couriers to deliver.
Posted by: jason at October 2, 2003 6:48 AM
They had a minimum for delivery when I used it in Seattle. Perhaps that was not allways the case. But if pizza delivery is profitable I don't see why Kozmo could not be done profitably if the costs were contained.
Posted by: Jake at October 2, 2003 9:22 AM
Ah...the days of kozmo, we miss them too.
You should rent the story of kozmo, I think the documentary was called "e-dreams" and you are all right: they failed because of the stupid starbucks deal, no min delivery fees and they tried to expand to quickly (pizza works because they have like a 5 mile radius to serve, not whole cities). Oh, and now you can rent it from http://www.mercurydvd.com/ Mercury DVD which delivers DVDs in Seattle now (for reasonable prices and a mail option). We do netflix as we live on vashon, but oh how we LOVED kozmo...
Posted by: Gay Gilmore at October 2, 2003 11:01 AM
Man I can't believe I used to pull down 42k downloading songs all day on napster and whipping up a layout template and a banner ad or two a day. I wonder what happened? Oh yeah, they were paying people 42k to do just that. Still the free bagels and soda were nice. I think pretty much everyone working in the bubble knew it was temporary, though.
Posted by: Ken at October 2, 2003 11:29 AM
Reading the bit about Jetsons reminds me that they're featuring in an advertising campaign for Broadband in NZ.
Posted by: Matt at October 2, 2003 7:54 PM
This is really weird. I was riding out from work yesterday, when a guy on a bicycle (I was on a motorcycle) with a Kosmo delivery bag on kept racing up and through the red lights. I had a little thought that he was going to get run over and go splat just like Kosmo did.
Posted by: tim at October 3, 2003 2:17 PM
You should come to the Toronto area.
http://grocerygateway.com/
Grocery Gateway is alive and well here, and they've actually been *expanding* over the last couple of years. I don't use it myself, but it was a god send back when I was working over at an office -- they'd bring loads of Coca-Cola, Rice Crispies, and beer (!) right to our fridge.
Posted by: nowak at October 5, 2003 9:06 PM
Well I would not mind at all living in Canada. Sort of proves my theory that Dot Com buisnesses can be done to turn a profit if costs are controlled
Posted by: Jake at October 6, 2003 1:26 AM
You miss Kozmo?!? You wouldn't *believe* how much we miss Kozmo.
My husband Sean was a manager for the Bellevue location (the ONLY profitable location in the company, thank you). Now he's working at a bloody Kinko's making about 2/3 the salary.
He would bring home day old Briazz sandwiches and a DVD and a Ben & Jerry's bar.
MAN I miss that place. It was an admin assistant's dream. When your friend was having a bad day you could have a CD and a Simpson's video delivered in an hour. Or Pasta & Co soup for a sick friend. Or lunches delivered for a business meeting.
*sigh*
Sean still has about 10 t-shirts and some jackets, and a CASE of post-it notes with the logo. They went overboard with the uniforms and logo stuff.
I'm sad now.
Posted by: dayment at October 6, 2003 10:08 AM
Hey I would love a Kozmo t-Shirt.
Posted by: Jake at October 6, 2003 10:16 AM
Consider yourselves lucky. I live in Birmingham, Alabama. The black hole of anything that is technical and cool.
It is better to love and lost than to not love at all.
-Dave
Posted by: Dave at October 7, 2003 1:19 PM
I worked at kozmo in Atlanta. I'm in L.A. now and I could've sworn I saw the Kozmo van on Sunset yesterday. It brought back so many memories. That was the greatest job I've ever had. Where else can you get paid well above minimum wage, get 1 dollar extra per delivery, and get tips? They provided us with video games, a foos ball table, 25c sodas, a tv, and didn't require us to do anything if there were no orders. It was heaven. And when we shut down they sold us computers for $150.00, the foos ball table went for $50.00, and we got all vacation day, sick day, and 2 weeks worth of regular pay all at once. I still have my kozmo t- shirts, sweatshirts, and the bags we used to keep frozen things frozen. In atlanta we also had the kozmo car. A bright orange ford focus with the green kozmo guy on it. I used to drive that thing all the time. Somebody(not me) finally ended up wrecking it and that was the end of that.
Posted by: erika johnson at November 22, 2003 11:25 AM
They had the cars here in Seattle. It is a bloody shame.
Posted by: Jake at November 22, 2003 4:52 PM
The IP of 209.152.49.111 did not leave a real email address.
Posted by: DumbMonkey at December 8, 2003 11:03 AM
now that there are way more people online, and there's blackberries, ipaq's, tungstens, iphones etc. sending and receiving email and various other web services...i think somebody should take another shot at it. maybe what was ahead of its time then, would be right on time about now. because i'm pretty sure i could make a million bucks in one week just doing it myself on foot in capitol hill. i'm just too damn lazy............
Posted by: r@d@r
at March 5, 2007 1:21 PM

