Peapod Inc

Online grocers such as Webvan Group Inc. and Peapod Inc. are being hurt by high delivery costs and consumer apathy, according to a report by research firm Jupiter Media Metrix Inc. Each order costs Webvan and Peapod about $27, with two-thirds of that going to delivery. The companies' average orders are slightly more than $100, the report said. Jupiter cut its 2001 online grocery sales forecast to $1 billion from $2 billion in a second report dated April 27.

Peapod Inc. shares surged after Dutch supermarket giant Royal Ahold announced plans to buy the rest of the online grocer for $2.15 a share, or $35 million in cash. Royal Ahold already holds a 42% stake in the online grocer. Peapod says it's making money in some markets and is on track for overall profitability in 2003. The company delivers groceries in metropolitan Chicago; Boston; southern Connecticut; Long Island, N.Y.; and Washington, D.C. Shares of Skokie, Ill.

Peapod Inc. named as its new chief executive and president an executive from Dutch supermarket company Royal Ahold, which last month agreed to buy a majority stake in the money-losing Internet grocer. Marc van Gelder, 38, fills the post left vacant in March when Bill Malloy quit for health reasons. Van Gelder most recently was senior vice president of supply-chain management and logistics at Ahold's Stop & Shop supermarket chain, based in Quincy, Mass.

Online grocers such as Webvan Group Inc. and Peapod Inc. are being hurt by high delivery costs and consumer apathy, according to a report by research firm Jupiter Media Metrix Inc. Each order costs Webvan and Peapod about $27, with two-thirds of that going to delivery. The companies' average orders are slightly more than $100, the report said. Jupiter cut its 2001 online grocery sales forecast to $1 billion from $2 billion in a second report dated April 27.

Peapod Inc. shares surged after Dutch supermarket giant Royal Ahold announced plans to buy the rest of the online grocer for $2.15 a share, or $35 million in cash. Royal Ahold already holds a 42% stake in the online grocer. Peapod says it's making money in some markets and is on track for overall profitability in 2003. The company delivers groceries in metropolitan Chicago; Boston; southern Connecticut; Long Island, N.Y.; and Washington, D.C. Shares of Skokie, Ill.

Online grocer Peapod Inc. said it's ending service in four cities and strengthening operations elsewhere by buying assets of ailing rival Streamline.com Inc. Peapod will stop operations in Houston, Dallas and Austin, Texas, and Columbus, Ohio, and will pay $12 million for Streamline.com's operations in greater Chicago and Washington, D.C. Shares of Westwood, Mass.-based Streamline fell 16 cents to close at 84 cents, and Skokie, Ill.-based Peapod rose 19 cents to close at $2.19, both on Nasdaq.

Peapod Inc. said it will get $120 million from investors including Leon Black and Ronald Burkle to help fund the grocery deliverer's expansion. The investors are Black's Apollo Management, Burkle's Yucaipa Cos., Pequot Capital Management Inc. and GRP II. The money will help Skokie, Ill.-based Peapod keep pace with Internet rivals Webvan Inc., NetGrocer Inc. and HomeGrocer.com Inc., as well as traditional supermarkets such as Kroger Cos. and Albertson's Inc. that are moving online.

Dutch supermarket group Royal Ahold said it agreed to buy 51% of Peapod Inc. for $73 million, bailing the struggling Internet grocer out of financial straits. Peapod said Ahold will invest about $73 million in a newly issued series of Peapod stock at $3.75 a share. Ahold would also get warrants for more shares that would increase its Peapod voting stock to 75%. The news sent Peapod's shares up 69 cents to close at $3.19 on Nasdaq.

Peapod Inc., an Internet grocery-delivery service, said its cash reserves have fallen to $3 million, and it's seeking a buyer before its money runs out, according to regulatory filings. Peapod had $3 million as of March 16, down from $3.4 million in cash and $4.7 million in marketable securities at the end of the year, as its costs continue to outpace revenue, the company said in a quarterly filing with the Securities and Exchange Commission.

Two years ago, as online grocers fed with huge amounts of money were sprouting up, a tiny Aliso Viejo service began taking grocery orders over the Internet and making deliveries to buyers in south Orange County. WhyRunOut.com seemed an unlikely rival to huge outfits such as HomeGrocer.com and WebVan Group, which bought fleets of trucks, built big warehouses and made bigger headlines. But WebVan, which took over HomeGrocer last year, posted losses of more than $1 billion before closing Monday.

Online grocer Peapod Inc. said it's ending service in four cities and strengthening operations elsewhere by buying assets of ailing rival Streamline.com Inc. Peapod will stop operations in Houston, Dallas and Austin, Texas, and Columbus, Ohio, and will pay $12 million for Streamline.com's operations in greater Chicago and Washington, D.C. Shares of Westwood, Mass.-based Streamline fell 16 cents to close at 84 cents, and Skokie, Ill.-based Peapod rose 19 cents to close at $2.19, both on Nasdaq.

Peapod Inc. named as its new chief executive and president an executive from Dutch supermarket company Royal Ahold, which last month agreed to buy a majority stake in the money-losing Internet grocer. Marc van Gelder, 38, fills the post left vacant in March when Bill Malloy quit for health reasons. Van Gelder most recently was senior vice president of supply-chain management and logistics at Ahold's Stop & Shop supermarket chain, based in Quincy, Mass.

Dutch supermarket group Royal Ahold said it agreed to buy 51% of Peapod Inc. for $73 million, bailing the struggling Internet grocer out of financial straits. Peapod said Ahold will invest about $73 million in a newly issued series of Peapod stock at $3.75 a share. Ahold would also get warrants for more shares that would increase its Peapod voting stock to 75%. The news sent Peapod's shares up 69 cents to close at $3.19 on Nasdaq.

Peapod Inc., an Internet grocery-delivery service, said its cash reserves have fallen to $3 million, and it's seeking a buyer before its money runs out, according to regulatory filings. Peapod had $3 million as of March 16, down from $3.4 million in cash and $4.7 million in marketable securities at the end of the year, as its costs continue to outpace revenue, the company said in a quarterly filing with the Securities and Exchange Commission.

Peapod Inc. said it will get $120 million from investors including Leon Black and Ronald Burkle to help fund the grocery deliverer's expansion. The investors are Black's Apollo Management, Burkle's Yucaipa Cos., Pequot Capital Management Inc. and GRP II. The money will help Skokie, Ill.-based Peapod keep pace with Internet rivals Webvan Inc., NetGrocer Inc. and HomeGrocer.com Inc., as well as traditional supermarkets such as Kroger Cos. and Albertson's Inc. that are moving online.

Best Buy Co. said it is forming a separate unit, BestBuy.com Inc., to focus on electronic commerce as it plans to increase the products it sells over the Internet to include everything in its stores. "The organization of our e-commerce business into a subsidiary will facilitate its expansion, foster the recruitment of experienced Internet talent, and provide the flexibility to raise independent capital," Chief Executive Richard Schulze said.

Martha Stewart Living Omnimedia Inc., a multimedia company built on its founder's food and craft tips, said first-quarter profit climbed 62% to $5.58 million, or 11 cents a share, nearly triple the consensus estimate of 4 cents, as Internet and advertising sales increased. Sales at the company founded by craft and entertainment maven Martha Stewart rose 30% to $69.1 million. Revenue from the Internet and catalog division nearly doubled to $10.6 million from $5.