PDQuick, formerly Pink Dot, is expanding its online delivery service into the Washington-Baltimore region. The 13-year-old company, which has a base of 150,000 customers, rebates the Internet era and hopes to succeed in the new economy through old-fashioned business practices, not through free deliveries and giveaways. PDQuick adds a $2.99 delivery charge to each order and also asks customers to tip drivers. This tactic has kept it profitable while its startup competitors have splurged on free delivery and promotional offers, and now those competitors, including Kozmo, Webvan, and Peapod, are experiencing severe financial struggles. Free delivery drives down the average order size and drives up the price of the products, according to Dan Frederickson, CEO of PDQuick. PDQuick’s expansion will likely decrease its profits over the short term, but the company’s long-term prospects are strong enough that it has attracted $35 million from venture capitalists. Frederickson is considering raising cash for further expansion by offering PDQuick franchises for sale. The company also recently tested a cross-marketing promotion with Virgin Megastores.