Food delivery start-ups shop for cash, growth

HomeGrocer raises $245 million in an IPO, following a hefty investment in Food.com by McDonald's and Blockbuster. Meanwhile, L.A.-based Pink Dot announces plans to expand nationally.

CNET News staff

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CNET News staff

Jan. 2, 2002 4:43 p.m. PT

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HomeGrocer raises $245 million in an IPO, following a hefty investment in Food.com by McDonald's and Blockbuster. Meanwhile, L.A.-based Pink Dot announces plans to expand nationally.

"?The online grocery sector has really fallen on deaf ears."

- David Menlow, IPOfinancial.com president

HomeGrocer closely watched on first day of trading
update Shares of HomeGrocer.com rise in the first day following its initial public offering, but its ripe gains could soon spoil.

Pink Dot takes grocery Web site national
The Los Angeles-based grocer is expanding its online home-delivery operations nationwide to challenge the already crowded field of Web supermarkets.

HomeGrocer.com raises $245 million in IPO
The Amazon.com-backed online supermarket raises $245 million in an initial public offering in a market that hasn't looked favorably on e-tailers.

Food.com brings investors to the table
A group of well-heeled investors, led by McDonald's, is banking that online consumers are ready to order meals online and is pumping $80 million into the dining-destination site.