Retailer H-E-B buys Austin-based delivery company Favor

H-E-B, the San Antonio-based grocery chain, sets plans to grow digitally with its upcoming plans to buy Austin-based Favor Delivery, an app-based delivery service with a network of more than 50,000 statewide delivery drivers.

H-E-B, the San Antonio-based grocery chain, sets plans to grow digitally with its upcoming plans to buy Austin-based Favor Delivery, an app-based delivery service with a network of more than 50,000 statewide delivery drivers.

H-E-B, the San Antonio-based retail chain, announced Thursday its plan to purchase Austin-based Favor Delivery, an app-based delivery service with a network of more than 50,000 statewide delivery drivers.

While Favor will continue to operate independently as a separate brand, the partnership will complement H-E-B’s existing brick-and-mortar stores by expanding how customers choose to shop, pay for and receive products, according to a news release.

H-E-B currently offers home delivery to certain zip codes across Texas, curbside pick-up and online shopping and shipping; however, the purchase of Favor gives H-E-B access to Favor’s consumer-facing technology and the company’s on-demand advanced delivery system.

The terms of the transaction have not been disclosed, but H-E-B’s Chief Operating Officer Martin Otto said he is excited to join forces with another Texas-based company that shares similar values.

“Over the past two years, we have established a strong working relationship with Favor that has proven to be immensely successful for both companies,” Otto said in the news release. “We see a unique opportunity with this partnership to support and accelerate each other’s growth through the sharing of experience, insight and resources.”

Founded in 2013, Favor currently delivers in 50 cities in Texas. Favor CEO and President Jag Bath said he is excited to see how the partnership helps grow both companies in the future.

“We could not be more excited to be part of H-E-B,” Bath said in the news release. “I am incredibly proud of our team’s success and the business we have built at Favor. H-E-B’s extensive resources, capital and retail food industry experience will enable us to further build on our momentum and significantly accelerate our growth throughout Texas.”


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