Wednesday, August 13, 2008

25 Internet Startups That Bombed Miserably.


Billed by as “the shining example of a good idea gone bad”, Kozmo actually shocked many people by failing. The idea was to let city dwellers order late-night impulse items like movies and snacks that would be delivered free in an hour. It was a big hit with its target market, but before long, Kozmo became a victim of its own success. The very thing that made it appealing - free, fast delivery - made the business model unsustainable. It was simply not possible to deliver items that cheap for free and still turn a profit. By the time Kozmo began charging for delivery it was already too late, and the $280 million in funding was lost when the company closed its doors in March, 2001.


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