Why did Webvan fail?
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What Happened: What happened to Webvan?
The grocery delivery startup went bankrupt in 2001 after building costly warehouses. It spent heavily on infrastructure before demand caught up. Source: Wikipedia – Webvan
Why: Why?
It scaled before proving the economics worked in one city. Rapid expansion multiplied losses. Source: Wikipedia – Webvan
The Lesson: The lesson?
Premature scaling kills. Later players proved the idea with lighter models. Source: Wikipedia – Webvan