DeliveryEdge, the courier aggregator startup which refocused its business model several times in the past few years (and was previously known as LicketyShip until recently), appears to be in the deadpool. We wrote about the startup’s countless changes to its business model and tumultuous history as a startup here.
When LicketyShip launched in 2006, the startup tried to deliver ecommerce items to purchasers within four hours of checkout. We predicted that the company might suffer the same fate as Kozmo, which burned through $280 million in capital before it was deadpooled in 2001. Founded by Robert Pazornik, LicketyShip tried to improve upon this plan by charging users a steep fee for same day delivery but found that actual execution of the plan didn’t work. In 2007, LicketyShip gave up on the delivery model and focused on aggregating local courier services. You could use the service to pick up items you’ve bought over the phone with local retailers. Last summer, the company changed its model again, and decided to provide aggregating courier services for more than just deliveries of retail goods. They planned to take the fragmented courier market and turn it into an actual web service. LicketyShip also built an API to turn courier services into a web service.
Well… At least they tried. Not too many companies can change from one business model to another to keep it going until finding the secret sauce.
another one bite the dust only the strong survives
Been there done that. Back in ‘00 – ‘01 – we were a company called QuickStreet, based out of boulder. We built a web app that merchants could entere orders into, and routed couriers real-time from pickup to delivery location. It was a sweet app. But alas: ’twas an epic fail. Couriers were (and probably are still) way too old skool. Memorial site: http://quickstreet.net
Matt,
Why did your business fail?
What was the flaw in your business model?
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I wonder why they launched such a concept when myriad infamous start-ups with the same concept failed due to the same problems they had. The flaw in the business model is more than ostensible.
What is the flaw in the business model?