HomeGrocer
Encyclopedia
HomeGrocer.com, Inc. was one of the first online
supermarket
businesses, started in 1997. It was founded by Terry Drayton.http://www.seattlepi.com/business/article/Webvan-is-gone-but-HomeGrocer-com-may-return-1059410.php Buoyed by investments from Kleiner Perkins Caufield & Byers, Amazon.com
, John Malone of Liberty Media, Martha Stewart
and Jim Barksdale
, HomeGrocer.com built and operated the first fully integrated Internet grocery operation. Unlike previous start-ups, HomeGrocer.com did not operate out of existing supermarkets instead it built dedicated facilities where inventory was stored, orders picked and deliveries made. The first 50000 sq ft (4,645.2 m²) facility opened in Bellevue, WA in early 1998 modelled on Costco and with low levels of automation. The product selection was a complete alternative to the traditional supermarket at comparable prices with an earned reputation for top quality fresh produce, seafood and meat. Deliveries were made in custom tri-temperature trucks with the distinctive HomeGrocer.com peach logo. Customers support was very strong and new facilities were opened in Portland, OR in May 1999, in Renton, WA in September 1999, in Irvine, CA in October 1999, in Fullerton, CA in January 2000, in Carson, CA in February 2000 in Asuza, CA in March, 2000, in San Diego, CA in April 2000 and in Dallas, TX in May, 2000. Each of these new facilities operated 7 days a week and were 100000 sq ft (9,290.3 m²) with 50 delivery vehicles and a staff of 200. Daily sales reached over $1M day by June 2000. A total of 16 additional HomeGrocer.com facilities were under construction in markets including Atlanta, GA, Chicago, IL, Washington, DC. and Denver, CO.HomeGrocer.com developed all of its technology from its award winning website, its wireless picking systems that used WiFi, its driver "smart phones" all years before they were mainstream.
HomeGrocer.com completed a $288M IPO in March 2000 underwritten by Morgan Stanley
but, with a need for more capital and nobody prepared to finance dot-com companies at any price, had insufficient capital to complete its aggressive national rollout. In September 2000 stockholders approved a buyout by the cash-rich competitor Webvan
of the much larger HomeGrocer.com. Webvan got rid of all the key staff and spent more than $20M rebranding from the HomeGrocer.com logo to the Webvan logo and moving to their technology. The Webvan technology did not work very well and as HomeGrocer.com facilities were converted sales immediately declined by over 50% and never recovered. Webvan spent over $500M before going bankrupt less than a year later.
HomeGrocer exists today, but no longer sells perishables, such as fruits, vegetables, milk, and yogurt.http://www.homegrocer.com
Dot-com company
A dot-com company, or simply a dot-com , is a company that does most of its business on the Internet, usually through a website that uses the popular top-level domain, ".com" .While the term can refer to present-day companies, it is also used specifically to refer to companies with...
supermarket
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
businesses, started in 1997. It was founded by Terry Drayton.http://www.seattlepi.com/business/article/Webvan-is-gone-but-HomeGrocer-com-may-return-1059410.php Buoyed by investments from Kleiner Perkins Caufield & Byers, Amazon.com
Amazon.com
Amazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and...
, John Malone of Liberty Media, Martha Stewart
Martha Stewart
Martha Stewart is an American business magnate, author, magazine publisher, and television personality. As founder of Martha Stewart Living Omnimedia, she has gained success through a variety of business ventures, encompassing publishing, broadcasting, and merchandising...
and Jim Barksdale
Jim Barksdale
Jim Barksdale was the president and CEO of Netscape Communications Corporation from January 1995 until the company merged with AOL in March 1999.-Early life:...
, HomeGrocer.com built and operated the first fully integrated Internet grocery operation. Unlike previous start-ups, HomeGrocer.com did not operate out of existing supermarkets instead it built dedicated facilities where inventory was stored, orders picked and deliveries made. The first 50000 sq ft (4,645.2 m²) facility opened in Bellevue, WA in early 1998 modelled on Costco and with low levels of automation. The product selection was a complete alternative to the traditional supermarket at comparable prices with an earned reputation for top quality fresh produce, seafood and meat. Deliveries were made in custom tri-temperature trucks with the distinctive HomeGrocer.com peach logo. Customers support was very strong and new facilities were opened in Portland, OR in May 1999, in Renton, WA in September 1999, in Irvine, CA in October 1999, in Fullerton, CA in January 2000, in Carson, CA in February 2000 in Asuza, CA in March, 2000, in San Diego, CA in April 2000 and in Dallas, TX in May, 2000. Each of these new facilities operated 7 days a week and were 100000 sq ft (9,290.3 m²) with 50 delivery vehicles and a staff of 200. Daily sales reached over $1M day by June 2000. A total of 16 additional HomeGrocer.com facilities were under construction in markets including Atlanta, GA, Chicago, IL, Washington, DC. and Denver, CO.HomeGrocer.com developed all of its technology from its award winning website, its wireless picking systems that used WiFi, its driver "smart phones" all years before they were mainstream.
HomeGrocer.com completed a $288M IPO in March 2000 underwritten by Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
but, with a need for more capital and nobody prepared to finance dot-com companies at any price, had insufficient capital to complete its aggressive national rollout. In September 2000 stockholders approved a buyout by the cash-rich competitor Webvan
Webvan
Webvan was an online "credit and delivery" grocery business that went bankrupt in 2001. It was headquartered in Foster City, California, USA, near Silicon Valley. It delivered products to customers' homes within a 30-minute window of their choosing. At its peak, it offered service in ten U.S...
of the much larger HomeGrocer.com. Webvan got rid of all the key staff and spent more than $20M rebranding from the HomeGrocer.com logo to the Webvan logo and moving to their technology. The Webvan technology did not work very well and as HomeGrocer.com facilities were converted sales immediately declined by over 50% and never recovered. Webvan spent over $500M before going bankrupt less than a year later.
HomeGrocer exists today, but no longer sells perishables, such as fruits, vegetables, milk, and yogurt.http://www.homegrocer.com
See also
- AmazonFreshAmazonFreshAmazonFresh is a subsidiary of the Amazon.com American e-commerce company in Seattle, Washington. It is reviving the business model of ordering groceries online for home delivery first popularized by such companies as HomeGrocer.com and Webvan in the late '90s....
- FreshDirectFreshDirectright|thumb|Fresh Direct logo FreshDirect is an online grocer that delivers to residences and offices in the New York City metropolitan area. FreshDirect also offers next-day delivery to most of Manhattan and parts of Brooklyn, Queens, The Bronx, Staten Island, Nassau County, Westchester County, ...
- Gopher GroceryGopher GroceryGopher Grocery is an online grocer serving the Twin Cities Metropolitan area of Minnesota. It was founded in December of 2005 by William Orkin. It was based on the belief that grocery delivery does not have to be expensive, with its key selling points being a $2 delivery fee and low prices that...
- Grocery GatewayGrocery GatewayGrocery Gateway is a grocery delivery service based in Malton, Ontario and serves the entire Greater Toronto Area .Grocery Gateway was the brainchild of Toronto entrepreneur Bill Di Nardo, who along with co-founders Scott Bryan, Stephen Tallevi, Tomas Berinstein, Ben Jones, and Alan Lamb, started...
- HyVee
- PeapodPeapodPeapod, LLC is an online grocery delivery service owned by Royal Ahold and operating only in a select number of US cities. The company is based in Skokie, Illinois."." Peapod. Retrieved on February 15, 2011. "Corporate Headquarters 9933 Woods Drive, Skokie, IL 60077 ."-History:Peapod was founded in...
- Publix Direct
- SimonDeliversSimonDeliversSimonDelivers, Inc. was an online grocery that primarily served the Minneapolis-St. Paul metropolitan area of Minnesota, Rochester, Forest Lake, New Prague, Belle Plaine and Jordan, MN and western Wisconsin cities such as Hudson, New Richmond and River Falls...
- ShopRite (United States)ShopRite (United States)ShopRite Supermarkets is a retailers' cooperative chain of supermarkets in the northeastern United States, with stores in New Jersey, New York, Connecticut, Delaware, Maryland, and Pennsylvania...
- WebvanWebvanWebvan was an online "credit and delivery" grocery business that went bankrupt in 2001. It was headquartered in Foster City, California, USA, near Silicon Valley. It delivered products to customers' homes within a 30-minute window of their choosing. At its peak, it offered service in ten U.S...
- Winder FarmsWinder FarmsWinder Farms, headquartered in West Valley City, Utah, is an online grocer providing dairy and other grocery products to households in Utah and Las Vegas, Nevada.-History:The business was started in 1880 by John R. Winder...
- YourGrocer.comYourGrocer.ComYourGrocer.com is owned by New YourGrocer LLC, which began operations in the greater New York City area in May 2002. Marketed as "the warehouse club that delivers," YourGrocer.com aims to provide the convenience of online shopping and home delivery with the economies of buying groceries at...