Sunday, March 24, 2013

Beyond Webvan: MyWebGrocer Turns Supermarkets Virtual

When the Tarrant brothers—Rich, Brian, and Jerry—founded MyWebGrocer in 1999, they didn’t follow the path of Webvan and others betting on the online grocery gold rush. 

“Webvan was a poster child for a bad Internet business model,” says MyWebGrocer’s chief executive officer, Rich Tarrant. “In a low-margin business, where the products can be purchased within three miles by anyone in the United States, they decided to build warehouses and a whole distribution system with delivery trucks, labor, and everything else. But the 36,000 conveniently located grocery stores on every Main Street in America already had all that.”

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