Kozmo, everyone's favorite delivery service, has shut down as of Thursday, April 12th, 2001.
1,100 employees are being laid off from Kozmo's nine markets in New York, Atlanta, Boston, Washington, Chicago, Los Angeles, San Francisco, Seattle, and Portland, Ore. While Kozmo was still privately held and, according to the New York Times, "The company had made profits in New York, Boston and San Francisco in December, and secured $25 million in investments weeks before the company was supposed to have run out of cash in January,"
The decision to shut down was made so that severance packages could be handed out to all employees, rather than stiffing most layoffs, so a few markets could stay open.
Interesting. Now I can't get my damn Ben and Jerry's and DVD's delivered to my office. Anyone want to start a new service in New York (the most profitable Kozmo market)??