The Peapod Start

Origins

Brothers Andrew and Thomas Parkinson founded Peapod in 1989 in Evanston, IL. The Parkinson brothers' goal was to offer a convenient way for consumers to accomplish their grocery shopping.

Peapod began test marketing in Evanston in July,1990 with about 400 households. The orders were placed online, just not over the Internet. Peapod would provide software to customers and even sell the modems customers would need to dial in directly to Peapod. During these early days, Andrew and Thomas would do the picking and packing themselves, and make deliveries using their own cars - with their wives and other friends helping out as needed! As demand for the service grew, Peapod expanded operations to include much of the greater Chicago area, which is currently its largest market. Peapod soon extended into additional markets, and began taking orders over its own web site (www.peapod.com) in 1998. To date, Peapod provides service in the greater Chicago area, Milwaukee WI, greater Boston area, Connecticut, Long Island, New Jersey, New York, Baltimore and Washington D.C.

The Early Days

Peapod first began picking orders right from the shelves of the local supermarkets. In Chicago, they partnered with Jewel Food Stores, in San Francisco with Safeway, in Ohio with Kroger and in Texas with Randall's. In these early days, Peapod partnered with the grocery stores just to fill the orders, but it soon became evident co-branding with the store was the route to survival. Peapod was by far ahead of the curve, and was fast becoming the format of the future.

Joining Royal Ahold

In 2000, Peapod entered into a partnership with Netherlands-based international food provider Royal Ahold; in mid-2001, Royal Ahold purchased the remaining outstanding shares of Peapod, positioning the e-retailer to emerge as the leader in the online grocery industry.

Peapod's Service Model

Peapod has one model (centralized distribution) with two formats (wareroom/fast-pick center and warehouse). Both provide next-day delivery, capitalizing on a supply chain that keeps the cold chain intact. This allows us to use the assets of the store as we open markets, and then transition to warehouses as our business grows; leveraging the power of Ahold stores helps us to maximize quality, minimize out-of-stocks, control inventory and provide superior service.

Customer Service

Peapod prides itself on exceeding customer's expectations and providing friendly and superior service for each and every customer. The company stands by its 100% Satisfaction Guarantee - meaning that if something about the shopping experience or order is not to a customer's liking, Peapod will make it right.