Kozmo.com is on the verge of getting real big, real fast. But you'd never know it by reading the news. On Tuesday, the Wall Street Journal broke the story that Amazon.com and other investors were planning to inject $100 million into the New York-based deliverer of Net-ordered movies and snacks. But with business reporters swallowed up by the AOL-Time Warner deal, the story's gotten little advancement.
The Journal's Andrea Petersen and George Anders reported that Amazon would plunk down $60 million for a 23 percent stake in Kozmo.com. An affiliate of Softbank will kick in $30 million, and the remaining $10 million will come from unidentified investors. Kozmo had already nailed a $28 million investment from Flatiron Partners and other backers in October. Not a bad haul for a business that relies on a fleet of bicycle messengers ferrying orders around. The Journal pointed out that the pairing of online ordering with Kozmo's quaint style of delivery has somehow made it the darling of Net investors.
According to one of the few reporters to follow up on the story, analysts believe that same-delivery services could solve one of the Web's greatest challenges: quick and convenient delivery. News.com's Greg Sandoval reported that busy Kozmo has inked a deal with Ticketmaster Online-CitySearch. The pact means Kozmo will be featured on CitySearch's local online guides in the cities served by Kozmo. Sandoval noted that Kozmo increased its product offerings last month by selling convenience goods such as laundry detergent and nonprescription drugs. Located in five cities, the company plans to expand into 21 cities by the end of the year. And when the AOL-Time Warner deal starts to cool, you might just start to read about it.