Amazon, others eye stake in Kozmo

Investors, led by the giant Internet retailer, reportedly are ploughing $100 million into the online delivery company that sends items bought on the Web to peoples' doors within an hour.

Feb. 6, 2002 8:56 a.m. PT

NEW YORK--Investors led by Amazon.com, the giant Internet retailer, are ploughing $100 million into Kozmo.com, an online delivery company that sends items bought on the Web to peoples' doors within an hour, according to reports.

Kozmo is raising $60 million from Amazon, which will take about a 23 percent stake in the company, and nearly $30 million from an affiliate of Softbank, though the Wall Street Journal, which reported the news citing people familiar with the situation, couldn't identify other investors.

Kozmo is planning to expand its services to 21 new markets this year, and is valued at $300 million after the investment, the Journal said.

Amazon.com and its Alexa Internet unit are being sued by a user who alleges that Alexa secretly intercepted personal information and sent it to Amazon.com.