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$1 Million Shoestring For MaxDelivery

August 25th, 2005 · No Comments

A bit of news with a recent Times mention of MaxDelivery:

Even in the reckless days of dot-com overindulgence,, the Internet-to-door delivery service, seemed excessive. The celebrated dot-com promised to deliver groceries, movies, take-out, or anything else within an hour after you pressed “Enter” on your computer. Not surprisingly, Kozmo imploded four years ago, but the concept is back. Chris Siragusa, 33, who lost his job and his stock options when Kozmo went out of business, is reconstituting the concept in MaxDelivery, according to the New York Post. MaxDelivery will deliver everything from diapers to DVDs to busy Manhattanites. The difference, said Mr. Siragusa, is that where Kozmo expanded rapidly in pursuit of an IPO, MaxDelivery is staying small and focusing on turning a profit. Another difference is that MaxDelivery started on a $1-million shoestring, culled from Mr. Siragusa’s savings and money he raised from family and friends. “I have a fear of venture capitalists,” he said. Some important changes have taken place since the rise and subsequent flameout of Kozmo and rival Urban Fetch. When those companies were struggling in 2000, only 4.7 percent of web surfers shopped online. Today, that number stands near 55 percent, according to the Yankee Group. Still Mr. Siragusa is setting a number of limits that his predecessors didn’t. For instance, he is setting a $10 minimum, plus a $4.95 fee for orders under $50, to help cover costs (from Red Herring).

Category: General


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