The grocery delivery service had a good idea, and expanded rapidly, growing to eight cities in 18 months — and it had plans to expand to 26 more between mid-1999 and 2001. It also placed a $1 billion orderfor planned warehouses in the months leading up to its IPO.
That confidence pumped up investors — and the company raised $375 millionin its 1999 IPO. Shares ultimately hit $30, but the company couldn't attract customers at the necessary pace. Combined with the thin margins of the grocery business, it ultimately fell to 6 cents per share. Webvan called it quits in 2001.