John Bogna
Yesterday, Texas grocery chain H-E-B announced it will be purchasing the Austin-based delivery app known as “Favor.”
Videos by Rare
Exciting news! HEB is joining forces with @Favor to provide an innovative, convenient and world-class delivery experience. https://t.co/Pe3f6wlh8Q pic.twitter.com/WKDgSl9NMu
— H-E-B (@HEB) February 15, 2018
Details of the deal remain undisclosed at this time, but, according to the Austin Business Journal, Favor’s CEO Jag Bath will remain in control of the company.
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“We’re proud to announce that our companies are joining forces to provide Texans with an innovative, convenient and world-class retail experience,” H-E-B CEO Martin Otto said in a video, featured above, posted to Twitter.
According to its website, Favor doesn’t focus exclusively on grocery deliveries, rather it employs contractors-which it calls “runners” to deliver whatever it is people ordered; of course, presently, they say a majority of their requests lean heavily toward food delivery.
With Favor, user place orders through a mobile app in an Uber-like approach to the delivery of groceries and other products to be able to deliver “anything you want in under an hour.”
Favor launched in 2013 and originally expanded outside of Texas, but pulled back in 2016 when it couldn’t sustain deliveries over such a wide area, according to the Austin Business Journal.
Today, and especially with the backing of H-E-B, the company is pretty Texas-centric.
Spread the love! 💘 Send flowers from @theflowerbucket and @GordonBoswell for only $3 today. 💐 #AnythingDelivered pic.twitter.com/rijwSSpnJi
— Favor (@Favor) February 14, 2018
Despite the past shortfalls, financial setbacks didn’t stop the company from growing in popularity, currently sitting at the top of the heap in the competitive delivery service, “Uber-of-everything” marketplace.
The app now delivers goods in 50 Texas cities, including 12 Houston-area locations.
Favor officials says their app it’s the first on demand delivery service in the nation to achieve profitability, claiming to employ over 50,000 Texans as runners, and officials say teaming up with H-E-B could give Favor access to the grocery chain’s over 400 stateside stores.
Thrilled to announce Favor is now part of the @HEB family! We’re proud to be joining forces with another beloved Texas brand. https://t.co/iYHL5CfkAM pic.twitter.com/F5ANnwdRHE
— Favor (@Favor) February 15, 2018
“We see a unique opportunity with this partnership to support and accelerate each other’s growth through the sharing of experience, insight and resources,” Otto provided in a statement.
RELATED: New H-E-B store reportedly coming to Meyerland
We can’t wait to do Houston a Favor and try this out!
