Kozmo extends reach with Ticketmaster deal
The convenience goods provider and Ticketmaster Online-CitySearch today announce a deal that will make Kozmo the exclusive same-day delivery service on Ticketmaster's online network of city guides.
Kozmo--which delivers such items as videos, CDs and magazines in less than an hour--will be featured on CitySearch's local online guides to cities where Kozmo has a presence. Through the deal, CitySearch, which offer guides to 47 national and international metropolitans, will link to a co-branded site where users can order Kozmo services, according to the companies.
"This relationship allows us to bring Kozmo's services to an even broader audience and to capitalize on the local traffic that CitySearch attracts," Jeff Yolen, Kozmo vice president of business development, said in a statement.
The agreement comes during a major expansion period for Kozmo. The company is due to receive between $80 million and $100 million in financing from e-commerce giant Amazon.com and Internet banking firm Softbank, according to sources close to the company.
Last month, Kozmo increased its product offerings by selling convenience goods such as laundry detergent and nonprescription drugs. In addition, the New York-based company--which is currently located in five cities including New York, Seattle and San Francisco--plans to expand into 21 cities by the end of the year, starting with Los Angeles and Chicago.
Kozmo's same-day delivery systems had sparked Amazon's interest months before the investment. Analysts believe that same-delivery services could solve one of the Web's greatest challenges: quick and convenient delivery.
Amazon declined to comment on the investment.