Webvan was an online "credit and delivery" grocery business that went bankrupt in 2001. The core business of the company was to delivered products to customers homes within a 30 minute window of the grocery products being choose by the customers. This web site provide the services in ten U.S. Market. San Francisco Bay Area, Dallas, San Diego, Los Angeles, Chicago, Seattle, Portland, Atlanta, Sacramento, and Orange County.
The main reason webvan falls bankruptcy was due to the investment made by the company on infrastucture was exceeded the sales growth. As a result,the company ran out of money.Webvan placed a $1 billion (USD) order with engineering company Bechtel to build its warehouses, bought a fleet of delivery trucks, purchased 30 Sun Microsystems Enterprise 4500 servers, dozens of Compaq ProLiant computers and several Cisco Systems model 7513 and 7507 routers, as well as more than 80 21-inch ViewSonic color monitors and at least 115 Herman Miller Aeron chairs (at over $800 each).
The bankruptcy of this e-commerce website resulted, all non-perishable food was donated to local food banks. The company's legacy consists of thousands of colored plastic shipping bins for groceries that are still sitting in customers' basements and closets, and a lucrative severance package for ex-CEO Shaheen.
Written and edit by: Chok Yik Siong
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