Online grocer plans 238 jobs in Indianapolis

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Peapod Inc., an online grocery-delivery service, is seeking city tax incentives to help it with an expansion that would create 238 jobs by 2018, the city said Monday.

The Chicago-based company said it wants to lease 50,000 square feet of distribution space in Warren Township, near East 30th Street and Post Road, to open a distribution center to serve customers in central Indiana.

Peapod said it would invest $5.4 million in refrigeration, racking, technology and logistics equipment for the facility at 9222 E. 33rd St. Papers filed with the city estimate the total investment in equipment at nearly $6.5 million.

Fifteen drivers who already work in Indianapolis would be retained in the expansion.

The company is asking the Metropolitan Development Commission for a seven-year tax abatement that will save the company an estimated $313,587, or 62 percent, on personal property taxes over the abatement period.

MDC staff said the company will pay about $191,384 in personal property taxes over that period and an estimated $58,266 annually after the abatement ends.

Peapod said the new workers will be paid about $15 per hour.

Peapod’s preliminary abatement request is scheduled to be heard at Wednesday’s MDC meeting. If approved, the final resolution would be voted on by the MDC on June 18.

Peapod Inc., founded in 1989, delivers online grocery orders in 24 U.S. markets. It is a division of Amsterdam, Netherlands-based Royal Ahold.



  • Broken record
    As I've said before, we need to stop treating every business differently depending on their ability and willingness to hire connected consultants to lobby for these tax breaks. If we think the property taxes we charge businesses are too high, then we should change the rules so that they apply fairly and evenly to every similar business investment. Stop picking winners and losers, and create a level playing field and a city that people want to live in, and the jobs will follow.
  • Stick em up, Indy!
    Companies like Peapd don't invest in stores. Instead, they have one relatively small distribution center from which they will serve the entire region. That gives them a huge cost advantage over other grocers. It would be great if we still had business men and women in America who could make a go of it without millions fro the taxpayer. Any politician who votes to give this company taxpayer money is a fool.
  • Support Local Company or Corporation in Netherlands?
    We have a locally based organization performing a similar if not better service. I'm pro-competition but I hope with the local connections of Green Bean Delivery http://www.greenbeandelivery.com/ we would support our own. At their current growth rate they could easily grow by more than 238 employees by 2018 and keep the profits and the suppliers Local! Why send tax breaks to the Netherlands? Keep the profits at home and the playing field level.

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