During the internet boom, web-enabled home delivery grocers were a hot investment. Everybody has to eat, right? But investors wrote off the concept when Webvan (founded by Louis Borders, a co-founder of Borders) went bankrupt in 2001. Maybe investors wrote off the concept when CNET named Webvan the largest dot-com flop in history. Ouch!
There is no doubt that Webvan was an enormous flop, but did it’s lack of success rightly poison the well for other web-enabled home delivery grocers?
Peapod, Fresh Direct and SPUD are just three fast growing home delivery services that are finding their footing once again. Perhaps this second coming will live up to the promise of Webvan.
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