Grocery shopping has traditionally been one of those tasks you can’t avoid, unless you’ve got the loot to let somebody else do it for you.
Online grocers have changed all that.
Yes, there are those who love to grocery shop. We’re not talking to you. We’re talking to the rest. Checkout lines, grouchy shoppers, lugging groceries from store to car to house. Religiously clipping coupons, only to leave them in the hallway. Getting charged $2 for the cantaloupe when you know the sign said $1.50, but you don’t have the patience to wait for somebody to doublecheck it. These are just a few of the reasons why some shoppers are supermarket surfing.
True, grocery delivery is nothing new. Most supermarkets will bring your groceries to your door, provided you live within a certain radius. Orders are called or faxed in. But it is the Internet that has revolutionized the game, giving customers a virtual grocery store in their den or kitchen or wherever else they’ve parked the computer.
So we decided to check out the two major players in the Chicago area, Peapod (Tribune Co. currently owns a 9 percent stake in Peapod) and Webvan. Three shoppers from the Good Eating staff placed two orders apiece to each service over four weeks. Included in each of our orders were the same seven items, allowing us to evaluate and compare. We also rated the sites and service in terms of promptness, efficiency and ease of use.
In keeping with the unpredictability of e-tailing, Peapod and Webvan introduced changes to their services after we finished our shopping expeditions. Webvan’s major change: It has expanded its 30-minute delivery window to 1 hour effective this month.
Peapod’s change is more dramatic: It ended its relationship with Jewel-Osco in January. It will now get a large portion of its supplies from firms owned by Dutch retailer Royal Ahold NV, which has a majority stake in Peapod and owns several East Coast supermarket chains, including Tops and Giant Food. Peapod will get its produce from Chicago’s South Water Market.
Many of the reasons we liked Peapod (the ability to use Jewel-Osco’s Preferred Card, and the familiar Jewel and President’s Choice private-label products) have fallen by the wayside, though Peapod will offer private labels Country Delight and Tops, and will continue to accept manufacturers’ coupons.
The sites
Peapod, based in Skokie, started business in 1990. Webvan, a California-based firm that began in 1996, launched services in Chicago last year. (A third online grocer, Streamline, operated in the suburbs until it was acquired late last year by Peapod. Priceline, which attempted its make-an-offer approach to groceries last year, left the field after a few months.)
Peapod and Webvan fill orders in giant warehouses with products stocked by their various vendors. Peapod has warehouses in Lake Zurich (100,000 square feet) and Niles (75,000 square feet); Webvan operates out of a 370,000-square-foot distribution center in Carol Stream and has eight substations sprinkled throughout the Chicago area.
Ordering online
Registration is fairly easy: You give them your name, address and phone number–and a credit card number, which is required to guarantee payment, though Peapod accepts checks and money orders upon delivery.
Both sites attempt to make navigation as easy as possible, with pictures of products as well as nutrition information, prices, sizes, etc. Peapod also offers a useful price-per-ounce breakdown. You can hunt for an item by typing it into a search field or by going to a particular category. The “browse aisles” button on Peapod, for example, lets you view all the major categories in its virtual store. Webvan sort of does that, though we found its “fresh market” and “grocery store” categories a bit confusing. (Though “fresh market” contains perishables such as produce, seafood and meat, you have to go to “grocery store” for dairy products.)
The sites also offer assistance for newcomers, as well as recipes, menu planning and the like.
Food isn’t the only thing you can order. Books, pet supplies and postage stamps are some of the items available. Webvan offers a far greater number of non-food items you would rarely find in a supermarket, such as electronics, CDs, clothing, computer software and toys. Peapod is hoping to expand its non-food items.
Also worth noting: Each site will substitute similar items if something you ordered is not in stock, but you have the option of telling them not to do that. Orders can be modified up to a certain time before delivery (usually the day before). None of our controlled orders had mistakes, but a veteran online shopper has had errors in the past from both services, and a same-day call resulted in a prompt credit each time. Each will occasionally make another delivery to return a missing product, but this is handled on a case-by-case basis.
Our grocery list
Each of our orders included seven items: flat-leaf parsley; bananas; skinless, boneless chicken breasts; fresh whitefish; 1/2 gallon non-fat milk; a dozen eggs; and a frozen product, Uncle Ben’s Noodle Bowl.
Over the course of four weeks, some of the vagaries of shopping online emerged even with these seven items. Peapod offers curly but not flat-leaf parsley; Webvan sold fresh cod fillets but no whitefish. (We broadened our categories and ordered the most similar product.)
On the third week we discovered that Uncle Ben’s Noodle Bowls were no longer offered on Webvan so we ordered Rice Bowls instead. Webvan offers both green and ripe bananas. These weren’t major inconveniences for us, but they do demonstrate that inventory changes (whitefish fillets eventually surfaced on Webvan after we completed our orders)–just as it does at the store.
We wanted to make sure that the frozen items were solid, the eggs were uncracked, the milk had a generous expiration date, and that the produce, chicken and fish were fresh. The quality and integrity of all the products earned good marks across the board, except for the bananas from both services that often arrived with uneven colors, some with both black streaks and green areas on them.
Delivery windows
The biggest difference between Peapod and Webvan are the delivery times: Peapod promises to deliver within two-hour blocks, Webvan in one hour. (At the time of our orders, Webvan had a 30-minute window.)
Peapod staff arrived on schedule for all six deliveries. Webvan arrived on schedule for three, and arrived 15 minutes early on a fourth. (Its suburban orders all arrived on time.)
One of the Webvan visits was scheduled on the evening of Monday, Dec. 11–hey, we didn’t know that a blizzard would dump more than a foot of snow on the city. We didn’t expect them to show up, but we did not receive a call and we had to call the office the next day. We received a profuse apology and an offer to reschedule. Webvan also was also unable to fill a Saturday morning delivery because of staffing problems, they said; they called 20 minutes before the scheduled delivery and offered to reschedule that night. Because our shopper was out of milk and other staples, she declined and drove to the store instead.
John Honeck, director of marketing and sales for Webvan in Chicago, said that their drivers were 89 percent on time during the blizzard. Typically, he says, orders are 98 to 99 percent on time.
“Our challenge at times are side streets in the city where there’s no parking,” he said. He added that the lack of a call the evening of the order was unusual.
“We learned a lot” from the blizzard, he said. “I don’t think (Chicago has had) a winter like this for a long time. And this is our first go-round in Chicago.”
As for the early delivery, Webvan drivers will typically call the customer if they can arrive earlier than scheduled. “If it’s inconvenient, the courier will wait (until the scheduled time),” Honeck said.
The earlier you place an order, the more delivery windows will be available. All three shoppers found that Webvan had more delivery windows open than did Peapod, even when sites were visited several days in advance.
Delivery personnel from both services earned high marks from everyone for their good humor and accommodating approach. Webvan couriers bring totes, which customers empty. (Or, you can keep the totes for a deposit.) Peapod delivers some items in totes (again, if you keep them, you pay a deposit) but most products arrive in paper and plastic bags you can unpack at your leisure.
Tips are not accepted by Webvan; they are optional on Peapod. (We gave Peapod drivers $5, or about $1 per bag.)
What we found
Here are some points to consider:
– Online shopping still takes time. Each order took us from 15 to 30 minutes.
– Single shoppers and small households are at a disadvantage. Peapod and Webvan offer free delivery only if you reach a minimum order-$100 for Peapod, $75 for Webvan-that can be tough to chalk up on a weekly basis if you’re not feeding a crowd. Otherwise, delivery can range from $5 to $10 for Peapod and $5 for Webvan.
– You’ll spend a little more, and you’ll save a little more. With online shopping, impulse items are almost a thing of the past. But in-store sales are too. Webvan advertises its specials on its sites, though it does not accept manufacturers’ coupons; it occasionally offers coupons that are credited at the time of delivery. Peapod accepts manufacturers’ coupons but credits them toward your next order; online coupons also are offered.
– Storm alert: If the weather makes it tough for you to get to the market, the same may be true with delivery services.
Three shoppers, three decisions
Webvan and Peapod are very similar, but their differences can be dramatic.
Peapod has a price edge with its private-label products and acceptance of manufacturers’ coupons, but a chunk of the money you save can end up in a tip for the driver. (We believe that when tips are called “optional,” they’re not.)
Webvan doesn’t accept manufacturers’ coupons or offer those cheaper, private label products we like. It does have an appealing number of boutique items such as Corner Bakery bread, microbrews and Peet’s coffee. Plus, there’s a shorter delivery window and now, less expensive delivery rates.
One shopper, who has a family, decided she would continue to use Peapod, though part of this decision was based on Jewel-Osco’s Preferred Shopper card and the President’s Choice private labels no longer offered by Peapod. She also preferred Peapod’s site navigation.
Another shopper had good experiences with both services and will continue to use them both. Though Peapod’s lower-priced private labels and coupon policy appeal to her, Webvan’s lower delivery fees and no-tipping policy are attractive too. Her final decision will be based on the availability of delivery times.
The shopper who decided she would continue going to the supermarket said she would use online markets occasionally; her usage would increase only if inventory grew on both sites. She liked Webvan, though, for its shorter delivery window, which is less intrusive on her schedule. And she preferred its Web site.
Our conclusion? Everyone agreed that these services saved time and aggravation. It is a real convenience to have heavy products hauled in by someone else. But one shopper remains skeptical about letting someone choose her produce, dairy and meat; still, she said, “It’s winter, I don’t have a car, and I don’t like lugging around big grocery orders, so these services are very attractive.” She will stick with the supermarket but occasionally shop online. The second shopper will alternate online shopping with trips to the market. The third is happy to do most of her grocery shopping online.
In short, the supermarket will remain a destination for all three shoppers. But online shopping is an affordable convenience that is worth a try.
COMPARING THE SERVICES
WEB ADDRESSES/PHONE NUMBERS
Peapod: www.peapod.com, 800-573-2763
Webvan: www.webvan.com, 800-799-4999
AREAS SERVED
These are rough boundaries; certain pockets of the Chicagoland area may not be not covered.
Peapod: North to Waukegan, northwest to Crystal Lake, west to Elgin, south to Tinley Park and southwest to Naperville.
Webvan: North to Lake County; west to St. Charles; south to Burr Ridge and Tinley Park.
HOURS OF DELIVERY
Peapod: 7 a.m. to 10 p.m. daily
Webvan: Varies by location; typically 6 a.m. to 10 p.m. weekdays; 7 a.m. to 3 p.m. weekends.
TIME WINDOW FOR DELIVERY
Peapod: 2-hour window for attended deliveries
Webvan: 1-hour window for attended deliveries
UNATTENDED DELIVERY AVAILABLE?
Peapod: Yes
Webvan: Limited. (Shelf-stable items.)
PAYMENT (attended delivery)
Both sites require a credit card (some debit cards also are accepted) to guarantee payment.
Peapod: Credit or debit card, check, money order
Webvan: Credit or debit card
(For unattended deliveries, both require payment by credit cards; some debit cards also accepted.)
TIPPING
Peapod: Optional
Webvan: No tipping.
COUPONS
Peapod: Accepts manufacturers’ coupons. Company also offers online coupons as well as coupons reflecting recent purchases.
Webvan: Only Webvan-generated coupons accepted. Company may offer online coupons
by spring.
DELIVERY FEE
Peapod: Free for orders more than $100; $4.95 from $75.01 to $100; $9.95 on orders from $50 to $75. Minimum order: $50.
Webvan: Free for orders $75 or more; $4.95 for orders less than $75. No minimum order.
FIRST-TIME CUSTOMER DISCOUNT
Peapod: Coupons are distributed through direct mail and e-mail.
Webvan: $20 off an order of $75 or more.
