Austin-based Favor Delivery, the on-demand delivery app, has been acquired by Texas grocery giant H-E-B. On February 15, the San Antonio-based chain announced it was purchasing Favor for an undisclosed amount.
Favor has been a game-changer since it came onto the scene in 2013. Suddenly, for a slight fee, users could order almost anything via Favor's mobile app, and within an hour or so a friendly driver clad in a light blue tuxedo T-shirt would show up at the front door.
Currently, Favor operates in more than 50 cities across Texas. It entered the Dallas-Fort Worth market in July 2017.
"Over the past two years, we have established a strong working relationship with Favor that has proven to be immensely successful for both companies," says H-E-B COO Martin Otto in a 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."
H-E-B has been busy. The Favor acquisition comes one day after the company unveiled curbside service for some of its Central Market stores, starting with the Fort Worth store at the corner of Hulen Street and I-30. It already offers curbside service at more than 100 H-E-B stores throughout Texas.
There are seven H-E-B stores in North Texas, in Burleson, Granbury, Cleburne, Ennis, Waxahachie, Stephenville, and Corsicana; an eighth store is set to open in Hudson Oaks in 2019.
H-E-B isn't the only grocery chain investing in technology-based delivery. In early February, Amazon-owned Whole Foods Market launched service with Prime Now to deliver groceries for free within a two-hour window.