Webvan Hikes Delivery Prices

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Webvan Group yesterday implemented higher delivery fees in the Chicago and San Francisco markets, the latest move by the financially troubled online grocer to reach profitability.

The company's delivery fee for an order of less than $75 was raised from $4.95 to $9.95, and a new $4.95 fee will be imposed on orders of $75 to $100. Orders of more than $100 will continue to be delivered for free.

The online grocer already charged the higher fees in its other markets, which include Seattle; San Francisco; Oakland, CA; Los Angeles; San Diego; and Orange County, CA.

Webvan last week announced it was leaving the Atlanta and Sacramento, CA, markets, eliminating 502 jobs. The grocer also cut 400 jobs at its Foster City, CA, headquarters.

In the same announcement, the company reported that its net loss for the first quarter totaled $216 million, an increase from a net loss of $57 million in first quarter 2000. Webvan said it needs $25 million in additional funding to stay in business through 2002.

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