I'm always amazed at the immediate discounting that is given to WebVan. They had a long-term vision that will eventually be realized by some other company or companies-- to have a van come regularly to your home, not only to deliver things (like groceries, but also consumer goods, electronics, etc) but also to pick things up while they are there-- your drycleaning, movie rental returns, film rolls to be processed (it was 1999), etc. The long-term goal was essentially a combination of Amazon, Netflix, FedEx, and lots of other companies.
I remember coming up with an idea for home grocery delivery using the internet to place orders. (This was in 1995 or 1996 I think... before I'd heard of WebVan) Ten minutes of scribbling on an envelope convinced me that the idea could not be profitable, except perhaps for a niche market that was already well served.
When WebVan arrived, I was curious to see how they'd overcome the obstacles. They didn't.
No doubt someday, someone will make all of their "vision" happen, but it takes a lot more than vision to make a viable business.
WebVan was profitable in the SF Bay Area from early on, and profitable in Southern California as well. So yes they had a lot more than "vision". They expanded too rapidly and the losses in those other geographic markets is what did them in.
