NEW YORK (AP) — Webvan Group Inc. is buying HomeGrocer.com Inc. for about $1 billion in stock in the first sign of consolidation in the money-losing online supermarket business.
The acquisition announced Monday positions Webvan to be the dominant player in the Web grocery market, ahead of struggling Internet rivals such as Peapod and Streamline.com and brick-and-mortar chains moving online like Safeway.
While analysts lauded the deal, they were quick to point out that Webvan still faces significant hurdles.