Internet grocer Peapod Inc has restructured, spinning off its licensing business into the newly-formed and cutely-named Split Pea Software Inc. The impetus for the spinoff appears to have come from a huge deal to install internet grocery shopping and delivery systems for Coles Myer Ltd, Australia’s largest retailing chain. Peapod finished the installation in the fourth quarter and made the restructure effective from December 31, 1998. Split Pea gets certain technology rights, including the perpetual license to the software that makes Peapod’s internet grocery and delivery systems tick. In return, Split Pea must capitalize on the success of the Coles Myer relationship. Meanwhile, Peapod gets to concentrate its resources on its core business of moving groceries through the net. The senior managers are betting both ways. They retain majority equity ownership of Split Pea.
