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This week:

THE LAST MILE TO ... SOMEWHERE?
By Tim Laseter, Martha Turner, Anne Chung, and Pat Houston

New York, Oct 17, 2000- Last week's announcement that the Web-based e-tailer 
and delivery service Urbanfetch was discontinuing its business-to-consumer 
operation came as no surprise to us. As we pointed out in the August issue of 
strategy+business, such companies -- highflyers Kozmo.com, Webvan, and 
HomeGrocer among them -- face limited online sales potential, high cost of 
delivery, a speed-variety trade-off, and existing, entrenched competition. 
"We believe the last mile may lead to the gallows rather than to the promised 
land," we wrote.

Since that article appeared, Webvan acquired HomeGrocer, Kozmo cancelled its 
plans for an initial public offering, and Urbanfetch closed its core 
business. Are we gloating over our prescience? Not at all. We think all these 
moves are signs of maturity -- and indications that one or more players may 
develop a winning business model.

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To read the full analysis:
http://www.strategy-business.com/enews/101700.html
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Randall Rothenberg
Editor-in-Chief
strategy+business
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