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Dot-Com Drama: Kozmo Tanks, Yahoo Makes Cuts

NEW YORK CITY-The dot-com delivery service Kozmo has closed its doors, and Yahoo! has confirmed rumors that they will cut their work force by 12%. What does this mean for the real estate community?

By Betsy Kraat | Updated on April 13, 2001

NEW YORK CITY-In a climate where even the US Postal Service is announcing plans for a five-day delivery schedule, another dot-com demise is hardly shocking. After several merger attempts failed, Kozmo.com, the revolutionaryonline delivery service, has thrown in the towel. This is hardly a surprise, as dot-com deaths are fairly commonplace. But what will happen with the real estate? Insignia/ESG’s First Quarter Market Report indicated that Kozmo.com has already put nearly 50,000 sf back on the market. According to published reports, the delivery service also had three warehouses in Manhattan as well as office space. Tom McIntyre, Kozmo CFO, was brought in only three weeks prior to the dissolution. The proprietors of 80 Broad St. could not be reached for comment. Meanwhile, Yahoo CEO has made Stalinesque statements such as “We strongly believe such discipline is necessary to the overall health ofthe company.” No comment on how it will affect the health of the 400+ former Yahoo employees that will be filing for unemployment insurancebenefits. Also, officials would not comment on their office space plans.

This news comes on the coattails of Yahoo’s controversial decision to expand its pornography sales division. Apparently, thecompany’s higher-ups are hoping the X-rated products will provide a new source of revenue while web advertising sales are in a deep slump. Other Internet companies, such as America OnLine and the Microsoft Network, do not offer adult products among their wares but do provide links to those who do.

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