08 septembre 2005

the top 10 dot-com flops

Il y a tout juste 10 ans, Netscape - la mère de toutes les start-ups - faisait une entrée en bourse fracassante sur la place de New-York. Pour beaucoup cet évènement marquait le début de la bulle Internet et de la grande époque des start-ups aux business plans foireux. Quoi de plus naturel aujourd'hui, exactement 10 ans après, de revenir sur les top 10 dot-com flops comme le fait le magazine CNET ("technology, and more"). Personnellement, voici mes gadins préférés :

pets.com (2000)
Advertising, no matter how clever, cannot save you. Take online pet-supply store Pets.com. Its talking sock puppet mascot became so popular that it appeared in a multimillion-dollar Super Bowl commercial. But as cute -or possibly annoying- as the sock puppet was, Pets.com was never able to give pet owners a compelling reason to buy supplies online. After they ordered kitty litter, a customer had to wait a few days to actually get it. And let's face it, when you need kitty litter, you need kitty litter. Moreover, because the company had to undercharge for shipping costs to attract customers, it actually lost money on most of the items it sold. Pets.com raised $82.5 million in an IPO in February 2000 before collapsing nine months later.

kozmo.com (1998-2001)
The shining example of a good idea gone bad, online store and delivery service Kozmo.com made it. For urbanites, Kozmo.com was cool and convenient. You could order a wide variety of products, from movies to snack food, and get them delivered to your door for free within an hour. It was the perfect antidote to a rainy night, but Kozmo learned too late that its primary attraction of free delivery was also its undoing. After expanding to seven cities, it was clear that it cost too much to deliver a DVD and a pack of gum. Kozmo eventually initiated a $10 minimum charge, but that didn't stop it from closing in March 2001 and laying off 1,100 employees.

flooz.com (1998-2001)
For every good dot-com idea, there are a handful of really terrible ideas. Flooz.com was a perfect example of a "what the heck were they thinking?" business. Pushed by Jumping Jack Flash star and Whoopi Goldberg, Flooz was meant to be online currency that would serve as an alternative to credit cards. After buying a certain amount of Flooz, you could then use it at a number of retail partners. While the concept is similar to a merchant's gift card, at least gift cards are tangible items that are backed by the merchant and not a third party. It boggles the mind why anyone would rather use an "online currency" than an actual credit card. Flooz went bankrupt in August 2001 along with its competitor Beenz.com.