Peapod just keeps on, keeping on
Many have come and gone (Webvan, Streamline, etc.), but Peapod remains. That’s the simple truth for the grocery delivery service that was founded in the Chicago suburb of Evanston, UL in 1989 by brothers Andrew and Thomas Parkinson.
Today, Peapod is number 63 on Internet Retailer’s top 500 list with sales of $585 million a year. The company, which was acquired by Ahold in 2001, offers delivery and store pickup for customers at Stop & Shop, Giant-Carlisle and Giant-Landover.
The competition for online grocery continues to increase as Amazon.com, Door-to-Door Organics, FreshDirect, Kroger, Wakefern, Walmart and others explore opportunities to grab share via home/office delivery or click and pick models.
According to Internet Retailer, 40 percent of Peapod’s sales are now made through smartphones and tablets. By 2015, 70 percent of its sales through those devices will be through the company’s successful HTML5 mobile apps.
But what about the growing competition from (the elephant in the room)?
"Our biggest fear is (Amazon’s) not caring about not making money," Peapod president Andrew Parkinson, told Crain’s Chicago Business, in an interview earlier this year. "They’ve proven time and time again that they’re willing to spend a lot to gain customers. It’s going to be a good fight. The highlight for me is how fast we’re growing and the investment by Ahold. They know we have to build out now to get ahead."
- 5 Companies You Thought Were Already Bankrupt – Inc.
- Peapod celebrates its 25th birthday remembering its pre-Internet days – Internet Retailer
- How Peapod plans to beat Amazon and Wal-Mart – Crain’s Chicago Business
Do you expect online grocery to grow enough to support multiple players in the years ahead? What do you see as the greatest challenges and opportunities ahead for Peapod?