Kozmo.com we’ll be right over. We’ll Be Right Over.

kozmo.comwe’ll be right over

We’ll Be Right Over

Delivery in Under an Hour

1997 1998 1999 2000 2001

Delivering to New York City

1997 1998 1999 2000 2001

And Across the Country

1997 1998 1999 2000 2001

And Across the Country

1997 1998 1999 2000 2001

Let’s Go Public!

“We have incurred substantial net losses and have had negative cash flow since our inception. As of December 31, 1999, we had an accumulated deficit of $27.3 million. We incurred net losses of approximately $813,000 in 1998 and $26.4 million in 1999. We will continue to incur operating and net losses and to have negative cash flow for the foreseeable future. We expect that the rate at which we will incur those losses and have negative cash flow will increase significantly from current levels”

1997 1998 1999 2000 2001

Where Did the Money Come From?

The upshot of all this? The Amazon model of e-tailing -- where the customer pays for shipping and waits for days to get the order -- just doesn't cut it anymore. "Look at Kozmo. Look at Webvan. It's all converging on the last mile," says Yankee Group e-commerce analyst Rebecca Nidositko. And retailers, from food merchants to booksellers, face a stark choice: Conquer the last mile, bundle up, speed up -- or get out.

$60 million

$28 million

$?? million

$30 million

Where Did All the Money Go?

1997 1998 1999 2000 2001

1998 1999

Profit

Rental Revenue +108 +1706

Product Revenue +47 +1803

Rental Cost -14 -671

Product Cost -21 -1326

Delivery -66 -3265

Marketing -117 -10252

108 1706155 3509141 2838120 151254 -1753-63 -12005

Marketing

Internet Usage

Feb-Apr 2006 77%

Jun-Aug 2004 73%

Feb-Mar 2002 66%

Mar-Apr 2001 64%

Oct-Nov 2000 63%

Apr-May 2000 57%

Dec 1999 56%

Jan-Feb 1998 35%

May-Jun 1997 30%

Goodbye To You

Is Delivery Dead?

Questions?