Webvan filed for bankruptcy in July 2001 after expanding aggressively during the dot-com boom.
Founded in 1996, Webvan promised customers home delivery of groceries ordered online. The company invested heavily in automated warehouses and delivery infrastructure, aiming to build a nationwide network before demand had been proven in every market.
Webvan’s costs were far higher than its revenue, and the collapse of technology-sector investment made additional funding difficult to obtain. It ceased operations in July 2001 and laid off thousands of employees. Its assets were later acquired by Amazon.
Webvan is often mentioned alongside Pets.com as an example of a dot-com company that expanded too quickly. Its basic concept later became more practical as online ordering, smartphones, and grocery-delivery logistics improved.