Re: WebVan buys HomeGrocer: walking wounded

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Date: Wed Jun 28 2000 - 06:01:06 PDT

In a message dated 6/27/2000 7:20:25 PM, writes:

>It may sound a bit bizzare but of a kind there is a segment here , and
>i suspect elsewhere, that finds Kosmo the next natural progression to pizza
>delivery. And that is the market I think htey are hitting.

Sure there is, but the economics of the company are loony. This is a
glorified messenger service, nothing more: A messenger service with a
web-page front end instead of a telephone. Worse, a messenger service that
has to stock inventory.

Imagine scaling it up--imagine that this is a big market, and that in a place
like Manhattan they are getting, oh, 500 calls an hour during peak times. And
need to employ therefore about 200 bike-riding messengers. (Or car-owning
messengers if in LA.) In THIS labor market? At THESE prices? How you going to
amortize even the capital costs of a good bike? And even so: whjat market cap
do you think a messenger service should have? How much market cap do you
think a Chinese take-out/delivery restaurant should have? It's screwy.

Life IS short and likes DO suck, but waiting 45 minutes sucks, too.
Especially for szechuan dumplings.


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