I wonder how Webvan came up with the billion?
>FOSTER CITY, Calif. - Online grocer Webvan Group Inc. said Monday it is adding electronics, video games, movies and DVDs to the list of products it will deliver, a move that mimics Amazon.com Inc.'s strategy to gradually expand its retail offerings.
Foster City, Calif.-based Webvan said the electronics and entertainment products will be delivered within a 30-minute window and orders costing more than $50 will be delivered free.
Seattle-based Amazon began as a bookseller, and shifted step-by-step to sell toys, videos and music. Amazon now sells consumer electronics, furniture, and health and beauty products, among other products.
Webvan's ``last-mile strategy'' is expensive; unlike most online merchants that deliver through postal services, companies like Webvan have to establish a physical presence in each new market. As part of this strategy, Webvan last year ordered a dozen automated warehouses in major cities across the country at a cost of $1 billion to meet its expansion plans.
At the end of regular trading on Monday, shares of Webvan were at $5.875, up 68.7 cents, or 13 percent.
AP-NY-06-05-00 1737EDT |
