Peapod to close its S.F. branch

A message on Peapod's Web site tells San Francisco customers they can continue buying their groceries over the Internet via Webvan. To comply with its privacy agreement, Peapod gave customers the option of whether they wanted their private information to be turned over to Webvan (wbvn).

"To make it quick and easy to place orders with Webvan, we can transfer your previous orders and personal lists from Peapod to Webvan--and you'll receive $20 off your first Webvan order when we do," the message read.

Webvan spokesman Bud Grebey said that Webvan has agreed to pay Peapod an acquisition fee for every Peapod customer that "actually completes a transaction." Grebey would not reveal financial terms of the deal. --Greg Sandoval, Special to ZDNet News