Is Online-Based Grocery Delivery An Idea Whose Time Has – Finally – Come?

The enterprising fellow who tried to build a Web-based grocery delivery business 15 years ago – and went bankrupt after burning through $800 million – still believes the idea has merit. So does a new generation of entrepreneurs who see a great opportunity. Defunct Webvan’s George Shaheen says “somebody will figure out” the right way to do it, because no one really likes to shop for groceries. Among the companies trying to prove him right are Instacart, which has raised hundreds of millions in venture capital while racking up $100 million in sales in 2014. It has yet to turn a profit, however, and that may be a major hurdle. Profit margins are notoriously slim in the grocery business. But that is not deterring Instacart or its competitors, which include Amazon.com, Fresh Direct LLC, Good Eggs, Wal-Mart Stores and Safeway.