Amazon.com is among several investors reportedly infusing Internet delivery service Kozmo.com with $100 million or more in expansion funds. The company delivers movies, snacks and other items purchased online, often by bicycle mesenger.
Kozmo began expanding its operations outside the New York City market seven months ago. It has since branched out to Boston, San Francisco, Seattle and Washington, D.C., and plans to enter 21 additional cities. At its launch, the delivery service focused only on books, videos and CDs, but now delivers everything from batteries to doughnuts. Until now, Amazon has focused on building regional warehouses in Kansas, Nevada and other locations and using UPS or the U.S. Postal Service to deliver most of its smaller items. The investment indicates Amazon's interest in developing shipping alternatives and resolving one of the thorniest e-commerce problems: how to delivery quickly and conveniently.