Business Model and Early Success
The company's business model was to charge vendors and purchasers a flat monthly fee for use of the site and to take a commission on sales. The business logic was that online purchasing would save hotels money by speeding up the purchasing process for towels, linens, soap and other basic goods. The company went public on the NASDAQ exchange in September 1999 and its stock price doubled in the first day of trading. In 1999 and 2000 the company entered marketing agreements with large Internet companies and business service providers like AOL and Office Depot. At its height, the company had 1,000 employees and a market capitalization of more than $4 billion.
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