Webvan could potentially be considered a startup ahead of its time, their vision was a home-delivery service for groceries, where customers could order their groceries online. At its peak, in 1999, it was valued at $1.2 billion. Two years later they filed for bankruptcy, laid off 2000 employees, and closed down.

Webvan followed the Get Big Fast (GBF) business model that every other startup was religiously following at the time. In 1999 Webvan announced they would expand to 26 major cities. The following two years became a logistical nightmare with Webvan ultimately losing a total of $830 million before filing for bankruptcy. The strategy was to expand to all major cities.

Q. Identify the reasons for Webvan to fail.