Online Grocers Hurt by Delivery Costs, Apathy
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Bloomberg News
Online grocers such as Webvan Group Inc. and Peapod Inc. are being hurt by high delivery costs and consumer apathy, according to a report by research firm Jupiter Media Metrix Inc.
Each order costs Webvan and Peapod about $27, with two-thirds of that going to delivery. The companies’ average orders are slightly more than $100, the report said.
Jupiter cut its 2001 online grocery sales forecast to $1 billion from $2 billion in a second report dated April 27.
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