Background Electronic commerce (EC) has become popular due to the increasing demand of efficiency in shopping. The reason for this trend is the changes in technology and socio-demography. E-grocery, therefore, appears to be a fresh and attractive business concept that creates customer value for companies trading in supermarket industry. Handla24 of ICA Bankeryd is known as one of the foremost ICA retailers that generates e-grocery in Sweden. Starting in 2009, the service supplier went from zero customer to its current position of approximately 1400 regular customers. However, perceived value and further expectations from their customers have not been thoroughly understood yet. This issue is hindering Handla24 of ICA Bankeryd in expanding their customer group. Also, their ability to give appropriate service levels is potentially restricting further customer growth. With these issues rectified, Hanla24 of ICA Bankeryd could become a stronger player in the market. Purpose The purpose of this thesis is to examine how customer values are created in e-grocery. We identify factors that deliver value to the existing customers and target a potential customer group in Jönköping city for Handla24 of ICA Bankeryd. We also provide recommendations on  how Handla24 of ICA Bankeryd can attract this group. Method This thesis employs a combination of quantitative method and qualitative method. Data are collected through two face-to-face interviews with Handla24 of ICA Bankeryd. Customers in Jönköping are divided into two clusters: the existing customers and potential customers with two separate survey questionnaires for each of the clusters. Conclusion We conclude that e-grocery does create customer value. In the example of Handla24 - ICA Bankeryd, we identify four main factors that deliver value to their existing customers, namely delivery price, product range, convenience shopping and customer services. In order to target the potential customers for Handla24, we also recognize the characteristics that create the demand for e-grocery. The targeted customers are capable of shopping online due to the habit of surfing the Internet. In addtion, they do not like either queuing at the store or carrying groceries home. This group is a female majority. It also includes families having children or having greater than or equal to 3 members. This customer group does not find 99 kr delivery fee of Handla24 - ICA Bankeryd reasonable, but they still have an interest in trying and recommending e-grocery of Handla24 to other people.