Feeds

Webvan ditches expansion plans

E-grocer sees Q4 losses double

  • alert
  • submit to reddit

Intelligent flash storage arrays

E-grocer Webvan.com has ditched plans to launch in three US markets after losses almost doubled for the fourth quarter.

Net losses at the California company were $173.1 million for the period ended December 31 2000, compared with a loss of $89.7 billion for the same quarter the previous year.

Sales grew to $84.2 million against $19.8 million a year ago (the previous year's figures included Webvan's acquisition of rival HomeGrocer).

The company said today it cut 200 jobs in the quarter, and expects another 150 to be lost in the next five months. It indefinitely postponed plans to launch its online grocery service in Northern New Jersey, Baltimore and Washington DC.

According to Webvan, which has outlived many online grocery competitors, it averaged 2,160 orders pay day in the San Francisco area during Q4 - around 800 short of what it needs to break even.

Regarding funding, the dotcom now says it needs an extra $80 million to $100 million by the end of this year or start of 2002 to be cash-flow positive next year. It previously said it would need this cash in Q3 2001.

Earlier this month Silicon Alley online delivery service Kozmo.com ditched its Houston and San Diego businesses and cut five per cent of staff. ®

Related Stories

Kozmo dumps Houston and San Diego
Streamline.com turns into Thanksgiving turkey
Urbanfetch and don't carry

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.