Kozmo.com, the startup that attempted on-demand delivery of anything way back in 1998 but burned through $280 million in capital and failed to make itself profitable, is back.
Instead of delivering anything from videos to games to books and more, the new Kozmo is focused on bulk delivery of groceries. Kozmo will offer next-day delivery, with the goal of delivering on-demand within two hours, for groceries. Kozmo will initially charge a $5.99 delivery fee for orders costing a minimum of $35. With Kozmo, the company says customers can expect to save between 20-50 percent off retail prices.
It’s important to note that this Kozmo is under new leadership. None of the original Kozmo founders or employees are involved in this new venture. Instead, grocery ordering platform Yummy bought the domain and trademark for Kozmo. Kozmo’s products will come from Yummy.com and local retailers.
“Kozmo.com is an iconic brand that millions of people remember,” Kozmo and Yummy CEO Barnaby Montgomery told TechCrunch in an email. “In addition, it’s synonymous with convenience so we felt that keeping the name with our updated offering was the perfect fit.”
Kozmo seems to be going after Costco, Jet and Boxed.com, the site for buying food and household items in bulk that similarly does not charge membership fees.
“When viewed as a combined offer, Kozmo and Yummy.com offer customers the holy grail of online solutions; the opportunity to buy online for less than a trip to the store at Kozmo, and the option to have your groceries delivered in only 30 minutes at Yummy.com, which is faster and more convenient than a trip to the store,” Montgomery said. “The unified view of our 2 solutions is important because we’re able to leverage our owned facilities, inventory, labor and delivery infrastructure to profitably help customers solve more problems, and help them save more money.”
Kozmo is currently only available in Los Angeles, but the company has plans to expand into additional markets this year.