Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Fowler who wrote (69282)	7/23/1999 5:46:00 PM
From: Bill Harmond	Read Replies (2) \| Respond to of 164684

I watched Copper Mountain all day. If it out-performs Amazon and AOL from here, I'm in. Yesterday was a gift.

To: Mark Fowler who wrote (69282)	7/23/1999 6:15:00 PM
From: Robert Rose	Respond to of 164684

Interesting article on Amazon Jr: New funding values Webvan at $4 billion By Dick Satran SAN FRANCISCO, July 23 (Reuters) - Webvan Group Inc. got more big backing Friday for its ambitious plan to become the electronic grocer and delivery service of the Internet, as Goldman Sachs joined in a $275 million funding that values the startup at $4 billion. Two initial funders, Japan's Softbank Capital Partners LP and Silicon Valley investment banker Sequoia Capital, among the best known high-tech venture firms, also participated in the new funding round, which brought the total from outside investors to $395 million. The cash will be put to work quickly as Webvan continues its aggressive rollout of a nationwide Internet-based online delivery service into 28 major markets in the next two years. It has one such service operating for the San Francisco region and another set to open soon in Atlanta. Webvan will pay construction giant Bechtel $1 billion to build a system of high-tech distribution centers around the country for the virtual grocery stores that will let people order over the Internet for delivery within 24 hours. Webvan said it is entering the highly-competitive grocery space with a view that it can significantly widen the traditionally razor-thin profit margins of supermarkets, which make just a profit of just a penny or two per $1 of sales. Webvan marketing vice president Chris Mannella said ''We think we can improve on that by 10 percentage points, at the minimum.'' By introducing operating efficiencies through a highly automated plant structure and eliminating ''bricks and mortar store sites,'' he said, Webvan will sharply improve on the profitability of supermarkets, even when the cost of the door-to-doo sites," he said, Webvan will sharply improve on the profitability of supermarkets, even when the cost of the door-to-doo r deliveries is included. But Webvan has said it plans to go beyond the initial national grocery store business to create other kinds of delivery-based services to make full use of the distribution system. ''By starting with groceries we're taking on one of the most challenging markets,'' he said. ''Other categories are a lot more straightforward...our model can work for many markets.'' United Parcel Service this week said it plans to launch a public stock offer so it can make acquisitions in the e-commerce business. Webvan's Mannella said, ''We can't comment on their plans or any potential impact on what we're doing.'' Zona Research chief analyst Clay Ryder said, ''Webvan and UPS are at different ends of the business -- not really direct competitors but potential partners.'' Mannella said that the major investment by banker Goldman Sachs, as well as Softbank and Sequoia, both early investor in Yahoo! Inc and other leading Internet firms, ''clearly shows that blue chip investors have tremendous confidence in our business model.'' He said the size of the initial markets Webvan is entering could make the company highly profitable, with grocery sales alone totaling $450 billion, prepared foods $100 billion, and over-the-counter medicines $40 billion. Webvan said that the $275 million investment gives the new investors a 6.4 percent stake, which values the entire company at $4 billion. An earlier investment round brought in $120 million, but Mannella the company did not disclose the percentage ownership for initial investors, which included media companies CBS Inc and Knight Ridder Inc.