Kozmo Reportedly to Buy Urbanfetch
Citing several unnamed sources, the report said the two same-day delivery Internet shops, which sell CDs, books, snacks and consumer electronics, have been in talks for several months. The deal may be completed this week, though several substantial issues need to be resolved.
The merger, which would likely be an all-stock deal, would benefit both companies through labor cuts in both their back-office operations and courier staff, the report said.
A great deal of bad blood has passed between the two companies. Kozmo, New York, sought a court injunction claiming that Urbanfetch stole its business model. The two settled out of court in December.