PeoplePC was founded by Nick Grouf, Max Metral and David Waxman, and launched in the United States in October 1999.

Its business model included collective buying, which allowed the company to generate additional revenue from advertising, partnerships, and premium products.

[2][3]In February 2000, the company announced that they would provide PCs and Internet access to all of the employees of Ford Motor Co. and Delta Air Lines.

[4] Ford announced a cooperation with PeoplePC shortly after and said they would provide all of their then 350,000 employees with internet access for as little as $5 a month.

[7] In October it was announced, that PeoplePC would open European subsidiaries to enable overseas corporations and governments to offer their employees low-cost home computers and Internet access and later developed partnerships with Vivendi Universal, The New York Times, Blue Cross Blue Shield, and the National Trades Union of Singapore.