Webvan Quits Dallas

Webvan Group Inc., which sells food and other goods via the Internet, said it is leaving the Dallas market, effective immediately, to save money and focus on making its businesses in nine other regions profitable. The move will result in the firing of about 220 people. Webvan said Dallas was its least developed and most competitive market, and it would have had to spend too much money to make operations profitable. Webvan entered the Dallas market when it bought HomeGrocer.com in September. Foster City, Calif.-based Webvan also said it has enough money to fund operations through this year and expects to have positive cash flow in the second half of 2002. Webvan shares closed up 3 cents at 69 cents on Nasdaq.