I'd assume that putting and keeping a fleet of refrigerated vans on the road is expensive and they'd have to put their prices up.
Looks like they'd rather compete on prices.

Plus, to add to Hiheels' undoubtedly right answer, they'd also have to keep and pay for a set of highly expensive regional distribution centres acros the country with all the extra personnel costs and computerised warehousing costs and ordering systems and stock controls and stock checking coststhat that entails.

The customer would have to pay for these extra costs in the form of higher prices. Which goes totally against their marketing stance as a cheap and cheerful, no frills food supplier.

And, also, I'd presume the management of Iceland have already looked long and hard at the issue and have concluded that to spend millions on providing an internet service that only three or four people would use just isn't worth it.

They used to. It was one of the earliest and the best Internet shopping systems (in my opinion). We used to let our freezer get quite full and then go on-line and place a big order with Iceland. They were the first company to offer specific delivery time slots (they were usually within 30 mins) but this was probably more to do with the food being frozen than any business decision.

They did have a minimum value, which I think was £50, but they sold other non-frozen goods such as Coca-Cola and tea bags that could be used to make up the order if required.

I haven't a clue why they stopped the service. It just stopped one day and we asked in the store and were just told they weren't doing it any more. We haven't bought from Iceland since, not because we're sulking but because the shop is in the shopping centre and we shop at the supermarket(s) out of town.