Online Grocers Hurt by Delivery Costs, Apathy
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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