Peapod arms itself as grocery wars intensify

As Amazon and Walmart push their way into consumers' online grocery carts, Peapod—the elder statesman of the industry—is fighting back. But it won't be easy to win long term.

"E-commerce is exceptionally expensive and hard to make money on, especially as customer expectations have risen," says Mikey Vu, a partner with Bain & Company. Free same-day delivery timed to the minute is "incredibly hard to do. For Peapod, it's even harder because they don't have the scale of Amazon."