ergophobe - 5:43 pm on Jun 16, 2006 (gmt 0)

I know somebody who was one of the first folks in at Webvan and he said that the original plan they had was sustainable and might have worked and it sounds like Amazon is reviving it. Once Webvan got VC money, they got pushed into the ridiculous model that failed in the end, but at least to hear my friend tell it, none of the people who were there at the outset believed that the all groceries to all people model would ever work.

Original strategy was to seel only high margin items and to target people who might be willing to spend a bit more to get something of higher quality. It seems with the Amazon emphasis on gourmet and organic, they are looking at a strategy similar to the early Webvan.

I only wish that Trader Joe's would step in.