Anthony,
I wonder what the ratio of 'normal' grocery sales to higher-margin items is for WBVN. By higher-margin, I mean all of the prepared food and "artisan" breads they offer at rather expensive prices.
I've used WebVan in Atlanta almost exclusively for the last few months - love the service, but have had doubts about how long it will last. I abso-freakin'-lutely HATE going to the grocery store, and I haven't had a reason to complain about the quality of the Webvan food (produce is better than anything I've gotten at any of the local stores, seafood is great - especially the scallops, the lox is decent, and the prosciutto is excellent).
The only items I can see them making more than average (for grocery stores) profits on are the prepared foods and the artisan breads/other specialty food items. I doubt that many are using the service for their ancillary goods (flowers, CD's, Books, Videos, electronics, etc) and I suspect that they are biting off more than they should chew with those offerings.
I hope they don't go away, but as you point out... they seem to be doing just that. Shopping is a waste of my time - would rather be doing something I enjoy.
Kim and I do alot of shopping online for necessities - between Webvan and PlanetRx.com we cover most of our household needs, with the occasional pets.com order for dog food, cat food, and cat litter. Although I'll buy books online, I have to go and hang out at a book store a few times a month and just browse for an hour or two. Nothing online will replace that.
My two cents. |
