Webvan will host a Petsmart.com tab on its front door starting Friday and will deliver the pet products. The tab takes customers to a new Web page created for the joint venture.
The financial terms of the deal were not disclosed.
"This alliance...is proof that Webvan is executing on our 'Last Mile' mission," said Webvan Chief Executive George Shaheen, referring to the catchphrase used to describe home delivery.
The deal marks Webvan's first foray into the business-to-business sector, as the grocer will be delivering another company's goods for the first time.
The once high-flying Webvan, which operates in 10 markets and has a $1 billion infrastructure contract with engineering-construction company Bechtel, was warned last week that it faces delisting on the Nasdaq because of its slumping stock price.
Webvan's stock was downgraded by a score of analysts last year after the company did not reach its goal of being profitable in the San Francisco Bay Area market by its fifth quarter of operation. The downgrades sent the stock tumbling to below $1.
The stock closed Friday at 44 cents. To avoid being delisted, the stock must rise above $1 for 10 consecutive days within the next three months.
Webvan, which raised almost $800 million, also faces running dry of cash by September, according to company spokesman Bud Grebey.
Petsmart, despite recently withdrawing its IPO, stands poised to be the leader in online pet supplies. It recently bought the Pets.com domain name, cashing in on the popularity of that site's sock puppet mascot and brand recognition. In addition to Pets.com and Petstore.com going out of business, rival Petopia laid off 60 percent of its staff in October.
In November, brick-and-mortar pet supplies giant Petsmart agreed to invest $30 million and take a controlling interest in its online namesake.