Figuring Out • 4m
Why Did Webvan, a Grocery Delivery Platform failed So, it was 1996. The internet was expanding as crazy, and every dot-com company was raising millions with nothing but an idea. Louis Borders decided to jump on this trend and thus started Webvan. The idea was simple! Customers could order groceries on their website and they would deliver it in just 30 minutes. Soon they raised $7 million from Benchmark Capital and Sequoia Capital for this. And here comes the interesting part: June 1999: Webvan started taking orders Nov 1999: They had $395k revenue and a $50M loss Nov 1999: They raised $375 million in their IPO Dec 1999: It was valued at over $4.8 billion! And in 2001, the company was shut down with peak revenue of $178 million. Why did it fail? 1) Aggressive expansion to many cities 2) They targeted a price-sensitive market 3) It built its warehouses and infrastructure from scratch, which cost a lot 4) Their CEO received a $4 million salary while the company was bleeding money 5) The market was too early Thus, a company which raised over $850 million was shut down in just 5 years of starting, and CNET named it as one of the largest dot-com flops in history!
Work and keep learni... • 1y
The dot-com Crisis The .com crisis, or dot-com bubble, was a period of excessive speculation in internet-related companies from 1995 to 2000. Investors poured money into startups with inflated valuations despite many lacking solid business models. Th
See MoreTrivias Around start... • 1y
Pets.com: The Rise and Fall of a Dot-com Era Icon In the late 1990s, the dot-com boom was in full swing, and investors were eager to get in on the latest internet startups. One such company that captured the attention of investors and pet lovers ali
See MoreBuilding JalSeva and... • 8m
Elon Musk became a millionaire for the first time when Zip2 was sold to Compaq in 1999. In 1996, Elon Musk co-founded Zip2 📈 an online city guide for newspapers, with his brother Kimbal. They were so broke that they slept in their office and showe
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