Peapod is ending its grocery delivery service in Chicago.
As of Feb. 18, the company will no longer offer delivery in Illinois, Wisconsin and Indiana, according to a statement from Peapod’s parent company, Ahold Delhaize USA.
“This was a difficult decision given Peapod’s rich history in the Midwest,” Kevin Holt, CEO of Ahold Delhaize USA, said in the statement. “We know changes such as these are never easy for consumers and communities.”
“This move will enable us to fully focus on markets where we have strong store density, leading market share, and a longstanding heritage of customer loyalty,” he added.
The Midwest division of Peapod’s operation made up $97 million of the company’s $1.1 billion in total revenue.
Roughly 500 employees will be cut, though they will be eligible to apply for other positions within the company, according to the statement.
Peapod’s digital operation will still be based in Chicago and will continue to employ about 200 people.