‘Dot-Com’ Blueprints Need Dose of Reality

Your insights were exactly right. HomeGrocer.com’s “burn rate” defies all reason [“Ethan Allen Sitting Pretty, HomeGrocer Not Delivering,” Stock Exchange, May 23].

Hey, it’s only business, and the single element that “dot-com” business models miss time after time is a mechanism for generating a profit grounded in reality. The dot-com business community needs more “business” people and less hyperbole.

KEN LAMB

President, ClubValue.com

Playa del Rey

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I think the giant flaw in the business plan for both Webvan Group and HomeGrocer.com is the inability to efficiently deliver the product. It is a wonderful convenience for today’s harried shopper to order online, but . . . when are they home to accept delivery? (And someone must be home for chilled, frozen or fresh products.) At best one driver will make 10-plus deliveries in the evening, when the highest concentration of business can only be done.

I can’t envision a profit under this time schedule if their prices were twice what they are, and their prices are sure as heck not competitive with major chains.

JIM CHILTON

Chatsworth