Kozmo Nostalgia? Try LicketyShip
Michael Arrington
65 comments »
Remember Kozmo? It was an immediate delivery ecommerce service that launched in 1998 (ahhh….1998…sigh). They’d deliver a packet of skittles, or a new Palm Pilot, to you within an hour. After burning through $280 million in venture capital, they called it quits in early 2001. Kozmo had plenty of demand, but its cost structure just didn’t make sense: free delivery, which equaled low or negative margin sales.
Well, Robert Pazornik, CEO of new San Francisco-based LicketyShip, isn’t afraid to try the whole thing again, albeit with a significant twist. LicketyShip is now in private beta in select Bay area markets: San Jose, Cupertino, Sunnyvale, Mountain View, Palo Alto, Menlo Park, Santa Clara, and Milpitas.
I first got a glimpse of LicketyShip at a young entrepreneurs event at Stanford in January. Robert told us that 30% of Amazon orders pay for overnight shipping, signaling that a lot of people are willing to pay a big premium for quick delivery.
LicketyShip aims to fulfill that demand by combining items available at local retailers (they have 20,000 items in “stock”), with an oversupply in the local courier market. When you order something at Licketyship, you pay a premium of around $20 (this varies). LicketyShip dispatches a courier to a local retailer to purchase the item, and then deliver it to you within two hours during normal business hours.
To do it right, the technology around all of this is complex and requires LicketyShip to interact directly with the inventory systems of the major retailers it partners with. Robert won’t disclose much more, saying its too important to keep their proprietary relationships and technology confidential.
I went through the purchase process and stopped just short of ordering (the company asked me to hold off until next week). There’s lots of stuff to choose from in the consumer electronics categories, and LicketyShip says other things, like books, office supplies, home improvement, medical supplies, and foodstuffs soon.
LicketyShip is not launching for a while, although you can sign up for their beta test on the home page.
I like the new layout. Very umm.. “site revenue” oriented but I like it nonetheless.
Can I suggest you put the comments count/link next to the post title again? Seeing the level of feedback gives an indication of the importance of the story…
BK, thank you.
Liam, good idea. Done.
I posted about the site change here: http://www.crunchnotes.com/?p=205
I worked for Kozmo in Boston. There is a great HBS case study on the company. It will be interesting to see if Lickety gets into the rental business. We were getting vendors to sponsor drop boxes in their stores to reduce collection points. Drop boxes today could have alot more media options but rentals still are a trickier proposition.
May be, it is just that my eyes are so used to the lovely old layout that I just am not able to admire this new one.
I however completely admire Rachel and most of her works but this just doesn’t seem to be better than the old one. The heavy green makes it kind of uncomfortable to read as well.
If possible, I suggest you reconsider the colors and incorporating some aspects from the old layout as well.
Regards,
Bandi
HEY! You listened to my advice about comments/trackbacks!
Yes of course. I always listen to feedback.
so I posted on the change over at crunchnotes: http://www.crunchnotes.com/?p=205
Anyone have anything to say about licketyship?
good luck to them, love the idea, i’ve got a few online retail businesses in london..people are always asking for this service….
I’d love to create a similar one myself, but jesus the size of the task is scary all power to them…
p.s. love the new layout…v.cool…(beers on you at those prices for ad space…)
First, the new layout looks interesting.
Second, about licketyship; I always looked forward to Kozmo expanding into Southern California, though that never happened. I hope this idea works out. So basically, if I’m understanding it correctly, we’re paying about $20 extra for shipping and any other fees to have someone purchase items for us and deliver it to us within 2 hours. That’s awesome and perfect. in my view, since not everyone has the time to go and do things. Things could be ordered while one is going home from work or is away, with things left at the door or delivered to a house, for example. Maybe they could expand this service into gift ideas also, don’t you think? I would love having gifts delivered this way “Oooooh, completely forgot about her/his birthday/promotion/anniversary/new-child gift! Darn! No problem, licketyship to the rescue!”
One small thing: I’m assuming the courier purchases the item with cash, so that we can be given a receipt in case of any changes/refunds/exchanges?
I guess those things are what I would be thinking about whenever I can use the service.
Bes Z, that’s a really good comment on the returns issue. I’m not sure how they handle that…
Wow, this is the first time I’m viewing this website on a Windows computer with Internet Explorer. Although I prefer my Mac as being a superior OS, I must say this design looks pretty good on Windows!
This is a little company in Atlanta called Zifty that is making a go with a Kozmo like model. I think they add on $4.95 for the delivery. Twenty bills seems a bit step to me.
We used to joke about Kozmo, “Great Concept, bad business model. Let’s take advantage of it before they go out of businesss.”
Ice cream anyone?
Sign of the top in internet start-ups.
I LOVED Kozmo! And so did everyone else in my apartment complex. Back in 2000, Kozmo couriers were rushing in and out of our lobby at all hours. Of course, they lost money on every order.
But recently I met the CEO of http://www.dcsnacks.com; he said he’s been around for 3 years. And making money. DC Snacks only serves a tiny area, and only after 8PM. Deliveries under $10 are free. Otherwise it’s $1.50. Besides food items, they have DVDs (for sale), batteries and… ping pong balls. This seem a lot more Kozmo-like than LicketyShip.
Based on the screen shot, LicketyShip’s product mix somewhat resembles what you might see on Staples.com, and Staples offer free 1-business day delivery. How often might someone need a $10.49 CD storage box within 2 hours - and be willing to pay an additional $20? I also agree with Bes Z that refunds/exchanges might be an issue. The local retailers that LicketyShip buys from might not have identical policies.
Hey Mik,
It seems you are forgetting philosophy of web 2.0, your blog now shows all advertisement banners. Whats up ?
Sorry, for using this news to comment about the site of TechCrunch, but i didn’t find the mail of Michael Arrington. What a crap site redesign, TechCrunch layout was better before this new junk, please turn back. I can only see advertise now, that’s really bad for a guy who knows about community.
This site redesign is a sell out to the man. Really bad, and NEVER display “your ad here”, very tacky.
Lance beat me to it but http://www.Zifty.com here in Atlanta is really good.
Hmm.. not sure if I like the new site color/layout. Still liked the old techcrunch….
oh well.
I’m not a fan of the new layout. Way too advertising oriented.
I’m really not liking the new Techcrunch. The design aspect is nice, it’s just the ads (including the images in your articles) are overbearing to me.
“but it’s cost structure just didn’t make sense”
it’s == it is
You want to use “its” — no apostrophe.
Re: LickeyShip: Let’s hope these guys have a helluva INSURANCE POLICY as the old Kozmo ran down 6 preschoolers and a teacher (seriously injuring 2 of the kids who have struggled for the past 8 years with leg pain and complications therein). This was at the corner of Lake and Arguello in San Francisco near Temple Emmanuel. If the driver hadn’t been in such a hurry to deliver A VIDEO to someone who was too lazy to go get it themselves, these children wouldn’t have been harmed and traumatized. Does the world really need this? Instant gratification has gone way too far.
I think this is further proof the bubble is back, though I’m now looking forward to more silly dot-com advertising during the next Superbowl…
Wow, this blog sure makes you alot of money ($7,500 per ad spot + google ads + a bunch of other ads) Looks like a sellout. Good luck with that.
The best version of “kozmo II” was done by seamlessweb.com. They made a real business of helping you order food online, fast and simple, and delivered immediately by the local restaurant
As a consumer, I loved Kosmo and their complete lack of business sense. Great service, no cost. I am happy to get the service back, even though it seems that they’re trying to really build a business out of it this time around…
“Anyone have anything to say about licketyship?”
I think this comments section should be restricted to discussions about the layout!
Also, could you either put comments ABOVE trackback or not put trackback at all, just have it linked or in a collapsible link (that is collapsed as a default)? THAT WOULD BE AWESOME. You know, that way your website would be a little 2.0 also.
Hi Michael,
Just FYI, the link to the RSS feed for your site is currently like this :
I.e. it points to the TalkCrunch RSS feed, not the TechCrunch one.
Regards,
Nicolas
Argh, go back to the previous layout. It was nice and simple.
Regarding my previous post, in which all the markup was removed instead of being escaped, the problematic link is the :
link rel=”alternate” type=”application/rss+xml” title=”TechCrunch RSS Feed” href=”http://feeds.feedburner.com/Talkcrunch”
that is found in the head of the homepage.
Regards,
Nicolas
Sorry wrong place to complain, don’t know where else to put this, but Techcrunch your using some bad colours I liked the old one.
Whats with the green are you guys turning to write about Plants / Horticulture and trees now??
Keith
The new design is not as appealing as the old one - but my question is, $7500 with a min of 2 months for a tiny ad box on the home page??? Why not offer ad rotation so more people can afford it!
I commented earlier that i liked the new design…but now I feel sick….
Share the Love, Mike. I noticed a while ago that you’d stopped advertising that you were a ‘a member of the Web 2.0 WorkGroup.’ Isn’t 2.0 supposed to be about the network - at least in part? How about forgoing an advert and rejoining the network?
Sorry to use the comments section to comment about your new layout, but it’s HORRIBLE. Way too much advertising and it seems like you’re begging people for more ads with the “your ad here” box.
Again irrelevant to the topic, I hope Micheal puts a complaint box somewhere along with the ads
I know a personality change takes times to get adjusted to, just like a new haircut changes somethings in people or a moustache shave.
But someone digged too for bad design
http://digg.com/technology/Wha.....TechCrunch
Quote from digg site from the user
What the hell happened to TechCrunch
The site has a new *design* that looks like the old techcrunch was runover by a bus. Twice. What’s the deal?
Keith
Nil (#15), the philosophy of most web 2.0 sites - whatever that means - seems to be precisely “offer everything for free, use advertising as your revenue model”.
ANyway, back on topic, I’m not sure that a beta testing that covers one of the most heavily tech-oriented cities on the planet (the heart of the Silicon Valley) will truly reflect whether this idea will work this time around. I may give them a try when they open their doors and see whether as a customer it makes sense to me.
Mike, the new layout will work in the long run. When Win 98 first came out, many users complained and picked on it. But soon after, Win 95 became extinct quickly.
About the new gen. Kozmos, I totally agree with Leigh Anne. These bikers were making the NYC traffic deteriorating. For what? a pack of gum?!
Just a comment on the new design - it might be better if there was a graphical divide between the text and the text area and the columns on the right whether it be through color or a dividing line. (the last design seemed cleaner due to the color scheme) It was just that at initial glance, it seemed cluttered but its not that big of a deal.
By the way, I love your site and thank you for news on the newest services and startups. (makes me want to start one too)
A number of Seattle based companies are trying it all over again as well. A similar company delivers organic fruits to my door once every two weeks for $30 dollars a month.
I did some quick calculations after factoring gas to the different places that I would need to go to for similar prices, the service is actually quite comparable. I didn’t factor in the intangible of time, since I usually stop by other stores when I go to the local markets (though those stores may be less frequented as a result now).
woha? whats up with the green? I loved the old look!
Hhmm I think the only thing throwing off is the 3 sub columns on the right. I think If you put one advertising column on the left and one one the right and context centered everything should be balanced.
Mike,
So much for TechCrunch’s credibility as the “Consumer Reports” of Web2.0.
Accepting paid advertising in your sidebar for products you review is wrong.
You had a good thing going. But now - you must make a choice.
nice site redesign
Advertising is a part of the web… Im sure that TechCrunch couldnt operate forever with no income. Unless you all expect Mike to foot the bill every month, which im sure is somewhat of a big bill thanks to all of the bandwidth and servers needed, then I think some Ads are needed. The problem here, and my biggest WWW gripe, is how to go about displaying Ads. I think that this new design makes the Ads the primary content on the right side. Instead I think that Ads should be second to the actual content of the site.
Just my $.02
If more people are clicking on the ads - I would say its a successful redesign and you should stick on with it.
Its nice that you are filtering the ads on the top. It might be better if it ‘clicked’ to your articles related to the advertised site so that new people can read up on them easily and then visit the site.
I just wish the google ads had a green background. So they would blend in with the surroundings.
I like the green, though it makes it less formal.
Hey Michael. Not sure if this is a widespread issue or not, but your feedburner feed is not updating in my reader (IE7) - others are updating fine. I clicked on your feed icon to try and resubscribe to solve the issue, but all I get is an error from the folks at feedburner. Might be worth looking into. Last post that came through correctly was for collectivex.
Cheers,
Ben.
Free LCD Monitor!!!
http://www.giftfiesta.com/?rid=1116073
Heavy use of saturated colors is a nightmare on the eyes, and the new green is no exception. Also, the advertising feels like it just bleeds all over the published content. That said, it is still an improvement and departs from the neutral greys that were lulling the previous TechCrunch to sleep. The green gets in your face. Wow.
I don’t mind the ads… The Adblock plugin for FireFox blocks them all
The Green keeps Mike focused on his goals. Making Money?
Boy I miss the dot.com days.
Buying subsidized milk from Kosmo.com or a VC-funded desk from Furniture.com — those were the days.
Michael Krigsman
http://projectfailures.com
Basically these people plan to charge what the shipping of an item to your door on an “instant” basis is actually worth — i.e., about the price of a cab ride for you to go get it yourself. Meantime, if you actually want a pint of ice cream, Safeway will deliver it, no? (So what if you have to order twenty of them…)
Licketyship looks cool, and the beta looks great !