USA: Urbanfetch to take away consumer service in London and New York
Consumers seeking fast "E-gratification" of their snack and FMCG requirements will have to look elsewhere. US company UrbanFetch.com has announced the imminent closure of its consumer wing offering a one-hour delivery service for products ranging from snacks, books and CDs to electrical and beauty goods. Launched in New York last October, the company relied on the assumption that the US$70m worth of capital would allow it to weather the loss-making storm until "market conditions" improved. No such luck. Despite the fact that the site proved extremely popular with consumers, building a 70,000-strong base of regular users, with each order worth an average of US$40, Urbanfetch.com still made huge losses. And these are now unsustainable.Analysts have long predicted that the high costs of fast delivery would mean that such companies would struggle to make profits, and many have realised this, curbing expansion plans or attempting to restructure to focus on providing for business customers alone.Edinburgh and Glasgow's
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