graphic
News > Technology
Online grocer expands
November 30, 1999: 11:15 a.m. ET

Webvan to open distribution centers in four new markets; stock rises
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - Webvan Group Inc. announced its expansion into four new markets Tuesday as part of the firms plan to take its online grocery and drug store business nationwide.
    The Foster City, Calif.-based company, which is using the $375 million raised in its initial public offering earlier this month to help fund its $1 billion expansion, will open distribution centers in the Chicago, Seattle, Dallas and Washington D.C. markets.
    "The signing of these leases marks an important step in Webvan's corporate strategy and evolution into national coverage, said George Shaheen, president and chief executive officer. "When operational, these distribution centers will greatly expand Webvan's reach into four of the top e-commerce cities in the country."
    Shares of Webvan (WBVN) rose 3-7/8 to 28-9/16 in morning trading as Wall Street analysts reacted positively to the news.
    Deutsche Bank Alex Brown started its coverage with a "strong buy rating and set a $50 price target on its stock, while Robertson Stephens initiated its coverage of the company with a "buy rating.
    "We believe Webvan is taking an aggressive approach to addressing the [$400 billion-plus] grocery and consumer-product-fulfillment market," Robertson Stephens analysts Lauren Cooks Levitan and Lowell Singer said in their research report.
    "We believe the company is building the leading model for online grocery, using highly automated distribution centers and a complex hub-and-spoke delivery system to provide the final mile' of service not only for grocery products, but over time for a wider range of products."
    Bear Stearns and Donaldson Lufkin & Jenrette also initiated their coverage with "buy ratings.
    Webvan provides free delivery of goods within a 30-minute window specified by the customer. Back to top

  RELATED STORIES

Web grocer's IPO checks out - Nov. 5, 1999





graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.