Internet grocery e-tailer Webvan has revealed plans to cease operation in Sacramento, Calif., after poor sales hit the group's cash supply.

Based in Foster City, Calif., a spokesman for the company commented that the cost of continuing to operate in the area with its home grocery-delivery service was simply unjustifiable in the light of a lack of demand.

Webvan is hoping that by pulling the plug on eighteen such ventures across the US, it will be able to accelerate its profitability elsewhere. The company has already closed its operations in Dallas this year in a bid to conserve cash.

The current customers of the Sacramento arm of Webvan have until this Friday to place their final orders. If Webvan is to remain in business until the end of this year, it needs to raise US$15m by the forth quarter.