New Online Grocer Joins O.C. Market
HomeGrocer.com Inc. rolled out its service to Orange County on Monday, making it the second online grocer in the market.
The Bellevue, Wash.-based company, which has financial backing from several high-powered firms, including a $35-million investment from Amazon.com Inc., will deliver groceries to homes in 44 ZIP Codes, mostly in Orange County.
The company figures to provide formidable competition for the other local online grocery service, Aliso Viejo-based whyrunout.com, which lacks significant venture capital backing in this low-margin, high-service business.
HomeGrocer has aggressive expansion plans for Southern California. Using computers, customers shop for produce, meat, seafood, dairy products and specialty foods. Orders are delivered to their homes in the company’s fleet of temperature-controlled trucks by drivers who do not accept tips.
Foster City-based Webvan Group Inc. also is expected to enter the market soon.
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