Peapod shuttering operations in midwest, will focus on east coast

By MixDex Article may include affiliate links

Peapod grocery delivery service is closing up shop in the midwest and focus on its operations on the east coast.

The company will remain based in Chicago, but will close distribution centers in Lake Zurich, Palatine, Chicago, Milwaukee and Indianapolis, with about 500 people losing their jobs.

Peapod launched way back in 1989 offering the then novel idea of online grocery shopping and delivery.

It enjoyed some early success, but the market attracted competitors, including Amazon’s Whole Foods, Shipt and Instacart.

These companies leveraged existing grocery stores instead of standalone warehouses like Peapod did — while also largely taking advantage of independent contractors to do shopping and delivery.

It also didn’t offer the option to pick up groceries save for a sole location, another trend in the online grocery shopping industry.

Peapod will shift gears and focus on its east coast operations, where it hopes the higher household density will help make its business more viable and efficient, reports Crain’s Chicago Business.

Peapod was bought in 2001 by Royal Ahold, now Ahold Delhaize, the owner of Stop & Shop, Giant Food, Food Lion and other chains. Most of these of these chains operate primarily along the east coast as well as West Virginia, Kentucky and Tennessee.