| Webvan Dies | |
Webvan Group, Inc., the California-based online grocer, announced this week that it has ceased operations in all markets and that it intends to file for protection under Chapter 11 of the U.S. Bankruptcy Code. Founded in 1999, the company had promised to revolutionize grocery shopping. Since that time, it has burned through more than a billion dollars in funding.
Planning to sell its assets and business, the company shut-down its operations and laid off approximately 2,000 workers. Existing orders will not be delivered and no additional orders will be accepted. The company does not plan to resume operations.
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The shutdown of Webvan leaves several major U.S. areas without any online grocery service. E-Commerce Times looks for indications of how quickly the sector's remaining competitors will rush to fill in the gaps. James Tenser looks at the demise of Webvan, suggests it had at least three systemic flaws, and discusses what went wrong. IdeaBeat explores how the death of Webvan prompting competitors to defend their own models, scavenge for customers, and reflect upon Webvan's deadly excess. |
They're
Talking About... What is the Primary Cause of Webvan's Death? • Concentrating on spending instead of profits? • Poor understanding of consumer needs and behavior? • Insufficient market density and consumer base? • Or not enough venture capital and funding? -- Poll Question |
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by Melody Treece Vargas
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