Breakdown of Kozmo and Causes

Kozmo.com was founded in New York City in 1997 by Joseph Park, Kozmo began as a timeserving for harried customers. Kozmo, is a business with a new measure of instant consumer gratification- "to deliver every order in less than an hour". It satisfy customers needs whether is an ice-cream or a book thus also the first dot-coms to promise online deliveries.

For Kozmo, they believe that consumers cared about convenience but not cost. Eventually, the delivery was free. However, Kozmo was losing money on every order even they are getting popular day by day.Till then. Kozmo business ended on year 2001.

What causes Kozmo To Fails??

1.Unable to Develop Brand

Kozmo was unable to create brand image that was much different from that of a convenience store on wheels. Kozmo lacked the integration of customer needs, a brand that communicated an ability to satisfy those needs

2. Expanded its business too fast

Rapid expansion and intensive spending to gain market share and brand recognition. Amazon.com, Softbank Capital Partners, Chase Venture Capital, Oak Investment Partners, Flatiron Partners, Liberty Digital and J. & W. Seligman. Starbucks was also an early investor.

3. High expectation on the business

Use the Internet to combine the convenience of a catalog with the immediate gratification of in stores hopping by offering entertainment, food, and convenience products delivered within one hour, with no minimum order required and no delivery charges.