What primary cost focus characterized the Webvan model, according to the operational comparison?
Answer
Capital expenditure (CAPEX)
Webvan’s commitment to owning extensive physical infrastructure—the warehouses and the delivery fleet—mandated significant initial and ongoing financial investment in assets, which falls under Capital Expenditure (CAPEX). This is highlighted as the primary cost focus for that early model. Conversely, the modern Instacart model shifts this emphasis toward Operational Expenditure (OPEX), focusing costs on flexible labor (personal shoppers) and ongoing software maintenance rather than massive real estate investments.
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