Grocery Home Delivery
In “For Web Grocer, the Time Is Overripe†(May 28), a Jupiter Media Metrix analyst says, “Webvan is probably 10 or 20 years ahead of its time, and I don’t mean that in a good way.†Actually, it is 50 years behind its time. Fifty years ago, most grocery stores offered home delivery. Some companies like Jewel Tea Co. and Helms Bakery made it their exclusive business.
But the advent of the modern supermarket proved that home delivery is much more costly than having customers come to your warehouse. It was soon discovered that most people would rather travel to the supermarket and get a lower price. In order to survive, Webvan will have to increase its prices by 50%. Although this could be a viable niche market, the vast majority of consumers won’t pay the premium.
Gordon Rudd
Laguna Hills
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