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To: Glenn D. Rudolph who wrote (107244)	8/18/2000 10:39:23 AM
From: H James Morris	Read Replies (2) \| Respond to of 164684

Glenn, another Amzn investment in trouble. It appears Wall Street has discounted all of amzn's bad investments already. >PALO ALTO, Calif., Aug 18 (Reuters) - Kozmo.com, the Internet service that provides home delivery of food, videos and other consumer products, has decided to postpone its initial public offering (IPO), at least until early next year, a company official said. The official, who spoke on condition of anonymity, said Kozmo is laying off between 30 and 40 people, or about one percent of its total staff, from its headquarters in New York City. The latest layoffs follow a round of job cuts last week, in which 275 employees from the company's field service dispatch were let go. In June, the company cut 24 jobs from its headquarters office. Kozmo decided to postpone the IPO "to focus on profitability," the official said. "We feel we are going to be showing profitability in some of our markets in the near future, and think a strong time to go public would be after we can prove our model," he said. "Currently we are looking at the early part of next year (for an IPO)." Company spokespeople were not immediately available for official comment, but in a letter that was sent to employees and obtained by Reuters, Kozmo President Gerry Burdo said "the market is scrutinising dot-coms now more than ever." He characterised the postponed IPO as "a sign of our strength, not our weakness" that would give the company "an opportunity and a spotlight to prove that our business model is sound." Kozmo.com, which is backed by Amazon.com Inc <AMZN.O>, had filed to carry out an IPO in March, shortly before the stock market swoon that weighed heavily on dot-com stocks and intensified the pressure for them to generate profits. Although Kozmo has a large and growing base of happy customers, some analysts have questioned its ability to make money, and have suggested it will need to significantly expand its territory and the base of products it delivers to run an efficient operation. Kozmo says it has sufficient cash on hand to enable it to wait to go public and is expanding its operations in the meantime. The company currently operates in 11 metropolitan markets including New York and Los Angeles and has been rumoured to be considering an acquisition of its chief rival, Urbanfetch.com, which operates in New York and London. 00:17 08-18-00