News > Technology
NetGrocer goes online
July 21, 1997: 8:31 a.m. ET

Company allows shoppers nationwide to order groceries via the Internet
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NEW YORK (CNNfn) - For computer users too busy at their PCs to go grocery shopping, NetGrocer Inc. on Monday announced its new nationwide grocery delivery service via the Internet.
     The company said customers can get non-perishable goods delivered to almost any address nationwide using Fed Express's delivery service.
     Other companies, such as Peapod Inc., have been offering the same service but only to selected larger cities, such as Chicago and San Francisco. Peapod does, however, offer perishable goods and same-day service.
     The company has no membership fee but will charge a $2.99 FedEx delivery fee for 10 pounds of groceries and each additional 10 pounds will cost 99 cents. Those with a case of the munchies will be better off going to the supermarket since orders will take between two and four days.
     Peapod charges a $6.95 monthly fee and a delivery fee of $4.95-$6.95 per order (depending on the city) plus 5 percent of the order's cost.
     NetGrocer customers can get regular deliveries of items they need every week without having to place individual orders each time. They can also participate in a frequent buyer program, which will award points redeemable for either groceries or airline travel miles.
     The $200 billion annual market for non-perishable groceries presents large opportunities for the New York-based NetGrocer but the company says it will take perhaps a year to reach the 50,000 customer base of Peapod.Back to top
-- Randy Schultz




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