WebVan: A Disaster on the Web
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"Webvan was all about leveraging technology and reinventing the grocery business, just as Andersen had reinvented consulting...[and will] set the rules for the largest consumer sector in the economy."
- George. T. Shaheen, CEO, Webvan.com1
"Online grocers 'must create storefronts as easy to use as Amazon's, build delivery infrastructure as sound as UPS' and pick and pack pickles and pineapples better than anyone ever has."
- Evie Black Dykema, senior analyst, Forrester Research.2
"The problem with the online supermarkets is that their business model is so cost intensive that profits are very hard to come by."
- Ken Cassar, analyst, Internet research firm Jupiter Communications.3
One More Dotcom Bust
Grocery Express, the first online grocery store was launched in San Francisco (USA) in 1981. However, within a few years, it faced several logistical problems and had to be closed down.
It also used refrigerated trucks and vans to ensure that the food items, which reached the customers, were fresh. However, despite its efficient services, Webvan soon found itself on the verge of bankruptcy.
1] Scott Ard, Webvan IPO pushed back once again, news.com, November 3, 1999.
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