Kozmo.com

Kozmo's 2001 failure after $280 million in funding demonstrates how convenience subsidies create unsustainable metabolism. Free one-hour delivery of items as small as a candy bar required negative unit economics that scale only amplified. Like a predator that burns more calories hunting than prey provides, Kozmo's labor costs exceeded the value of goods delivered. The model that couldn't work in 2001 still struggles in 2024's gig economy.