Amazon versus Webvan

Abstract Both Amazon and Webvan were well-funded Internet startups in the 1990's. Both focused on a business model that allowed consumers to order products online that would be delivered to the consumers home. In the article, we discuss why Amazon succeeded while Webvan failed. The Two Companies' Background Amazon: Amazon.com, Inc. Amazon.com, Inc. is a Website where customers can find and discover anything they may want to buy online. Jeff Bezos founded Amazon .…

…have to travel an hour or more from the D.C. before returning empty. Poor understanding of consumer needs and behavior. Penetration projections assumed that customers would be won over by their initial Webvan experience and that they would thereafter purchase most of their grocery needs online. In fact, consumers warmed slowly to the service, and many used them only for occasional stock-up shopping. Users were enthusiastic, but they didn't stop using conventional supermarkets too.