Companies have been looking to strike gold with online grocery services for years. The list of those that have tried and failed is significantly longer than those that have succeeded.
Peapod is among the survivors. The Ahold-owned company is celebrating 20 years of taking orders and delivering groceries to consumers. Today the company, which estimates it has filled 14 million orders, serves 360,000 households in 22 markets.
Thomas Parkinson, co-founder and chief technology officer of Peapod, recalled the early days of the business where he helped customers with their dial-up modems.
"There were moments of sweat rolling down my face as I thought I'd messed up someone's hard drive," Mr. Thomas told the Chicago Sun-Times. "One woman asked, 'What do I use this foot pedal for?' Turned out, it was the mouse."
It's unlikely that one of the newest players in the online grocery business, GroceryU.com, will find much mouse confusion among its customers. The service, started by three seniors at Penn State University, offers students on the campus who do not have a car a means to get groceries without getting on a bus.
"For the last two years, I've lived with four other guys, and it was a hassle because none of us had a car," co-founder Tyler Droney told The Daily Collegian.
GroceryU requires a $40 minimum order and charges a delivery fee of $5 for orders under $100. Orders of more than $100 are free, Mr. Droney said.
Discussion Questions: How do you perceive the state of online grocery today? What do you see as the future prospects for online grocers? Is there a company (or companies) that you believe has figured the business out?