Internet grocery company Webvan Group Inc., which just
yesterday said it
expects a smaller than expected fourth quarter loss, teamed up with
Telocity Inc. to launch a promotion that offers customers several months of
free high-speed Net access.
The promotion has already begun in the San Francisco and Sacramento areas
Webvan.com customers who sign up with Telocity via the
promotion will get two free months of high-speed Internet access and four $25
coupons toward future purchases on Webvan.com.
and will roll out in all 10 Webvan markets over the next several months.
Financial arrangements between the companies were not disclosed.
“This partnership is part of our ongoing effort to give our customers a
shopping experience that is second-to-none,” said George T. Shaheen, chairman
and CEO of Webvan. “Telocity’s high-speed Internet access will make shopping
on webvan.com even easier.”
“Our partnership with Webvan, which sets a high standard for Internet
retailing, enables Telocity to reach a large group of potential customers who
could definitely benefit from having broadband service at home,” said Patti
Hart, CEO of Telocity.
Telocity’s DSL services are enabled through its proprietary Telocity
VelocityPort gateway. Telocity recently announced a new package of
value-added services — Connect & Protect — that allows subscribers to have
increased firewall security features and to network up to five home
computers. The Telocity gateway has also been designed to enable home
automation, remote control of residential electronics and voice-enabled
services.
Webvan may be on a bit of a roll. Just yesterday the company, whose stock has
been trading for less than $1 a share, said that preliminary estimates for
the fourth quarter of 2000 indicate a pro forma diluted loss per share of
approximately 23 cents on revenues of approximately $84 million. The company
said it was benefiting “from synergies realized from our acquisition of
HomeGrocer.com.”
Analysts had expected a loss of 26 cents a share and revenue of about $100
million for the quarter.
Webvan stock was trading unchanged in the early going this morning after
closing at about 47 cents a share. It has traded as low as 21 cents a share;
its 52-week high is $18.50.
Webvan offers its shoppers in select areas around the country a personalized
courier service that delivers grocery store and drugstore products into
customers’ homes within a timeframe of their choosing.
