Kozmo expands in-house staff, may cut agency ties

NEW YORK: Online delivery service Kozmo.com has expanded its in-house PR team, putting its relationship with Edelman on hold.

NEW YORK: Online delivery service Kozmo.com has expanded its in-house PR team, putting its relationship with Edelman on hold.

NEW YORK: Online delivery service Kozmo.com has expanded its in-house PR team, putting its relationship with Edelman on hold.

According to an insider close to both parties, Kozmo.com 'brought everything in-house and stopped using an agency.' It was also revealed that cutbacks in its operating budget led Kozmo.com to take Edelman off its monthly retainer. Early this year, Kozmo.com dropped RLM Public Relations and hired Edelman to assist with five new city launches.

Michael Gordon, VP of corporate communications at Kozmo.com, confirmed that he expanded the in-house PR team with two more employees but denied that Kozmo.com and Edelman parted ways. 'I have two superstars working for me. Edelman provides a valuable service on a more informal basis.'

Kozmo.com signed up Edelman early this year (PRWeek, February 21, 2000) for its 'reach and scale,' according to Kozmo.com's chief marketing officer Chris Shimojima.

Barby Siegal, EVP at Edelman and the lead on the national Kozmo.com account, said that Edelman was doing 'spot projects' but was for the most part 'on hiatus' from doing national PR work for the company.

The company raised dollars 250 million in VC funding over the last year, but in August scrapped plans to go public this year and announced a new round of layoffs following the reporting of losses of dollars 26.3 million.



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