Webvan founder Borders resigns

"He's seen a vision go from concept to startup to a mature company," said Webvan spokesman Bud Grebey. "He feels he's leaving it in good hands."

Borders, who also founded Borders Books & Music, could not be reached for comment. His resignation was effective immediately.

Webvan officials said the company has not swayed from Borders' original vision to use the Internet to change the way people shop.

"Louis' vision remains the guiding force behind Webvan today," said George T. Shaheen, chairman and chief executive officer of Webvan Group.

"What has changed is the route that we need to take to get there," Grebey said.

The company's short-term goals are to complete its integration with HomeGrocer, acquired last September, to focus on profitability in its 10 markets around the country and to conserve cash.

The Foster-City based company, now the biggest Internet grocer, lost $173 million in the fourth quarter and has acknowledged it is running out of money. It said it would need to raise an additional $40 million to $60 million by the end of 2001 to fund its 2002 operations.

Jeetil Patel, an analyst for Deutsche Bank Alex. Brown, said Borders' departure would likely not have much impact on the company.

"His leaving the board doesn't change the issues or the challenges or the risk that the company faces in the very near term," Patel said.

The company has not said what it will do with the opening left on its board of directors.

Webvan's stock debuted at about $26 in its initial public offering in late 1999, and is now trading at about 34 cents.<