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Online grocer Webvan to file for bankruptcy

FOSTER CITY, Calif. (AP) -- Online grocer Webvan Group Inc. shut down Monday and said it would file for Chapter 11 bankruptcy.

The Foster City-based company will lay off 2,000 employees and terminate its service to 750,000 active customers in seven markets -- San Francisco, Los Angeles, Orange County, Calif., San Diego, Seattle, Chicago and Portland, Ore.

The company never came close to making money, losing $700 million since its inception.

Launched in mid-1999, Webvan had been one of the Internet's highest profile Internet businesses. Promising to revolutionize the supermarket industry by taking orders online and delivering groceries to customers' homes, Webvan had raised about $800 million from venture capitalists and Wall Street.