E-Commerce Times Talkback

Re: Webvan: Once the Hunter, Now the Prey?
Posted by: ECT News 2001-06-28 19:18:50

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The shareholders of Webvan are assembling Friday. It's not
likely to be a happy occasion, since a share of the company's
once impressive stock can now be had for about one thin U.S. dime.

We'll have to wait and see how shareholders react. Annual
meetings are usually fairly polite events. Maybe investors
find it difficult to flog the executives who they bet
on with their own money. It would be like booing your
team's best hitter in the midst of an 0-for-28 slump --
if you owned part of the team.

Re: Webvan: Once the Hunter, Now the Prey?
Posted by: Dave Mitchell 2001-06-29 07:21:00 In reply to: ECT News

I bought 100 shares at 14 after hearing that a major investor was Bectel Corp., and subsequently
invested more after WBVN needed more capital. I was convinced it would be a hit in the urban market. Living near San Francisco, we discussed the benefits of online grocery shopping. To drive to the market, park, shop, carry it home. If you're busy, physically impaired, elderly, taking care of kids, working, who wouldn't go for that??
Maybe they should have offered a computer with an order, because it's obvious, those who would use and benefit the most aren't computer users.
Will Bectel and other major contributors bail on WBVN or boost more capital to stave off the collapse? A good idea with no model for net links to the potential user.

Re: Webvan: Once the Hunter, Now the Prey?
Posted by: Prerna Uppal 2001-06-29 00:53:18 In reply to: ECT News

What a silly point to take Bob Swan to task on: shareholders don't care one hoot whether Bob passes Interviewing 101 or not. Bob rightly said that over time the company will get back to a national footprint. He is doing the right thing: conserving cash and proving the business model at an operating point that is drastically less than what was originally envisaged.

It is pretty easy for super smart reporters and prescient analysts to poke holes at Webvan - no one could predict (not even these clairvoyant armchair consultants) that the steady state order rate would be 30-40% of built capacity. Had the order rate been at capacity they would have been singing a different tune.

Re: Webvan: Once the Hunter, Now the Prey?
Posted by: Mike Doody 2001-06-30 12:01:42 In reply to: Prerna Uppal

Bob Swan has a very tough road ahead. The fact of not having a vision 10 yrs. out, does not surprise me nor should it surprise allot of people. Most companies have no idea 'what they want to be when they grow up'. When dealing in the consumer market, rose colored glasses can really blurr vision instead increasing vision.
It is a market that renders a misperception that you can become a 'one stop shop'. We've experienced that with other companies, one with the term 'priceline' in its' name.
Webvan is another internet ginny pig who's efforts will well serve those that follow. It will become a case study of enhancement. They are pioneers in a relatively new frontier and fatalies are always high in those situations.
Ordering products by way of computer had a certain ring of uniqueness to it. Unfortunately for the computer industry, we are by nature a social creature, and socializing shall alway win out. I wish Bob and everyone associated all the luck wrapped up in every fortune cookie they deliver.