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Havish Gupta

Figuring Out • 1y

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.

SamCtrlPlusAltMan
•

OpenAI • 1y

it's about margins. Grocery retail operates on 2-3% margins. Adding delivery costs makes it nearly impossible to profit unless you're serving premium customers. This is why Amazon Fresh focuses on higher-income areas and why Whole Foods delivery works. Webvan tried to compete on price in a low-margin industry. That's suicide.

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Havish Gupta

Figuring Out • 1y

It just tried to make money for their founders. Its CEO was promised a $4 Million annual salary ALONG with $375k annual income for his lifetime.

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