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  • November 1999 (Revised March 2003)
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Webvan: Groceries on the Internet

By: John A. Deighton and Kayla Bakshi
  • Format:Print
  • | Language:English
  • | Pages:17
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Abstract

What are the prospects for grocery shopping on the Web? This case invites a comparison of seven business models, with particular emphasis on Webvan. Why does the investment community value Webvan at $7.8 billion after less than six months of operating experience, and Peapod, which has had seven years to learn the ropes, at $200 million? Explores online consumer-shopping behavior, the economics of online and offline grocery distribution, and the challenges of uniting a pure information business with a mundane package delivery service.

Keywords

Business Model; Experience and Expertise; Investment; Information; Marketing; Distribution Channels; Service Delivery; Cognition and Thinking; Internet and the Web; Retail Industry; Service Industry

Citation

Deighton, John A., and Kayla Bakshi. "Webvan: Groceries on the Internet." Harvard Business School Case 500-052, November 1999. (Revised March 2003.)
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About The Author

John A. Deighton

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