Throughout New york city, people in their homes late at night crave entertainment and snack foods. Kozmo was launched in 1998 to meet the needs of those New yorkers. With its orange-jacketed delivery people riding bicycles or motor scooters, Kozmo promised delivery of most items within an hour of ordering. Kozmo did not offer as wide a range of items as most convenience stores, so its main competitive advantage was its delivery service. Kozmo attempted to become profitable by adding high-margin items, such as DVD players and Sony PalyStations, and expanding its delivery areas to include higher-incoome neighborhoods. In addition to Manhattan, Kozmo operated for a short time in Houston and San Diego. In these citise, the higher average distances brtween deliveries made it even more difficult to cover costs.