Kozmo | Pioneering Online Delivery | NY, Seattle, San Francisco, LA Information

Kozmo.com was a venture-capital-funded online company that offered free one-hour delivery of "videos, games, dvds, music, mags, books, food, basics & more"[1] and Starbucks coffee in several major cities in the United States. Kozmo had a business model built around the delivery of small purchased goods within an hour by bicycle, car, truck, or public transportation. The company raised about $250 million, including $28 million from a group of investors in 1999 which included Flatiron, Oak and Chase[6] and $60 million from Amazon.com in 2000.[7] It entered a five-year co-marketing agreement with Starbucks in February 2000, in which it agreed to pay Starbucks $150 million to promote its services inside the company's coffee shops.[8] This included up to 500 Starbucks locations to host drop-boxes in-store for the return of videos.[9] Kozmo.com ended its deal in March 2001 after paying out $15 million. In July 2000, at the height of its business, the company operated in Atlanta, Chicago, Houston, San Francisco, Seattle, Portland, Boston, New York, Washington, D.C., San Diego and Los Angeles.[3] Kozmo had filed an IPO with Credit Suisse First Boston, but it never went public.[10]