Website www.peapod.com Parent organization Ahold Delhaize | Founded 1989 | |
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Peapod, LLC is an online grocery delivery service. The company is based in Skokie, Illinois and operates in several U.S. cities. It is owned by Ahold Delhaize and delivers from that company's stores, as well as from its own Chicago-area warehouses. Peapod has operations in 23 U.S. urban markets, and is presently the largest online grocery delivery store in the United States.
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Overview
Peapod was founded in 1989 by Andrew and Thomas Parkinson, both of whom are still executive officers. One early proposal for a name for the new company was IPOD for Information and Product On Demand, The brothers, taking marketing considerations into account, decided on the friendlier sounding "Peapod" instead. Before 1996, Peapod provided an online grocery shopping service in a partnership with Jewel supermarket in Chicago, Illinois and surrounding towns; Kroger in Columbus, Ohio; Randall's in Houston, Texas, and Safeway in San Francisco, California in 1993.
In 1996, the company launched its website and became one of the earliest internet start-ups; the company ranked 69th on the Inc. 500 list of fast-growing privately held U.S. companies. That year the company held an IPO on NASDAQ. Between 1997 and 2000, Peapod expanded into Boston and Watertown, Massachusetts, Long Island, New York, and Norwalk, Connecticut in partnership with Stop & Shop. In late 2000, they added Washington, D.C. and surrounding towns through Giant of Landover, and in 2011 they also started serving the Philadelphia market with Giant of Carlisle and Manhattan with Stop & Shop.
In June 2000, worldwide grocery giant Royal Ahold bought 51% of Peapod's shares, and in August 2001, Royal Ahold bought out the entire company. As a result, Peapod cancelled its contracts with all grocery companies except for Royal Ahold's two main American chains, Stop & Shop and Giant Food (Giant-Landover and Giant-Carlisle). This caused Peapod to abandon Columbus, Houston, and San Francisco entirely.
Mobile app
In February 2012, Peapod introduced signs at some SEPTA Regional Rail stations in Philadelphia which enabled smartphone users to shop for groceries using Peapod's mobile app on their phone and scanning the barcodes of items listed on the signs. The grocery delivery occurs later in the day.