Online grocer inks $1B distribution deal

Computer World –

Online grocer Webvan Group Inc. in Foster City, Calif., has signed a $1 billion deal with Bechtel Group to expand the number of Webvan distribution centers it has from one to 28 over the next two years. Bechtel will manage the design and construction of the centers.

Webvan currently operates a 330,000-square-foot distribution center in Oakland, Calif., which covers the Oakland/San Francisco Bay area. It will open a second center in the Atlanta area early next year.

The partnership "accelerates our distribution capabilities by placing the design and construction in the hands of

[a] pre-eminent engineering and construction company and lets us focus full on our core competency," said Louis Borders, CEO of Webvan, in a statement.

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