Tesco.com takes on the world

NEWS Tesco is set to launch its online service in the US today, hoping to avoid the fate of WebVan - the online grocer that spent its way into bankruptcy. Tesco is providing the technology and expertise for the deal but the service will be run under the Safeway brand. Tesco said the pilot programme in Portland had been helped by "latent demand" created by the demise of WebVan and HomeGrocer. WebVan bought HomeGrocer in the summer of 2000 for $1.2bn before going out of business. The British company believes the US market could be worth as much as £1bn a year. UK sales are expected to hit £300m this year. Tesco was the first British supermarket to offer online shopping. It was ridiculed by some observers for using existing shops to fulfil orders rather than purpose-built warehouses.