Strategic Agreement Between Starbucks And Kozmo Inc.
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Strategic Agreement Between Starbucks And Kozmo Inc.
On February 12, 2000 Starbucks Corporation and Kozmo.Com Inc. entered into a five-year co-marketing agreement that will exploit similarities in their customer bases. Starbucks will receive $150 million from Kozmo.com, which will be used partially to promote the Internet retailer inside the Seattle, Washington based coffee dealer’s shops. Kozmo.com, which offers personalized delivery services in Boston, New York, San Francisco, Seattle and Washington, D.C., plans to use the Starbucks deal initially for supporting existing markets. Kozmo.com customers place online orders for convenience items--ranging from snack foods to DVDs to books--that are delivered about an hour later. The New York-based Internet retailer, which opened for business in 1997, will put drop boxes for the return of rental items in Starbucks stores in the five cities it services. Kozmo.com also will use Starbucks' more than 2,100 stores in 34 states as a foothold for expanding into new markets. Starbucks benefits by Kozmo.com selling selected coffees over the Internet.
Agreement
(1) Drop-Box
It is Starbuck’s responsibility to due the following:
(1) Within 10 days of this agreement Starbucks must agree to deliver a list of all the locations of all its retail coffee stores located in United States and Canada in which Kozmo operates its business. If Kozmo ever expands its business into other additional U.S. or Canadian cities, it must provide a written notice within 30 days telling Starbucks of its plan to start operation in those expansion cities. Also on a quarterly basis Starbucks must provide Kozmo a list of new Starbuck Stores opened and expected to open in that calendar quarter.
(2) Starbucks must place a Drop-box in all locations agreed upon for customers to use as a return box of Kozmo video products and other items.
(3) Kozmo employees will also have access to enter a Starbucks Store to collect the Video Products and other items during the normal business hours of...