Webvan Founder Planning New Grocery Delivery Startup

Posted on April 19, 2014

Home Delivery Service

Webvan was an ambitious project from the dot-com boom and early days of the Internet. It became known for being a big startup IPO with a huge burn rate that failed. However, the business idea of home grocery delivery has never gone away. The Webvan founder has not given up on the idea either. Re/code reports that Webvan founder Louis Borders is preparing to launch a new online grocery delivery business.

The new company is listed as Home Delivery Service on the Mercury incubator website. The description says, "The HDS website offers consumers a single online store to shop for fresh foods and general merchandise from the world's leading retail brands. In HDS distribution centers, multi-retailer orders are assembled as one lot, packaged in returnable totes and delivered quickly and conveniently by HDS couriers in HDS vans." The site also says, "HDS can offer competitive prices, fresher foods and unlimited selection, as well as free delivery."

This type of business would require a combination of a large fleet of trucks and warehouses, or partnerships with existing services. The Re/code story notes that there are several companies currently running online grocery delivery services, such as Amazon Fresh, Peapod and Instacart, but there is nothing operating on a national level.

Photo: Mercury