H-E-B buys Austin-based delivery app Favor

Austin

AUSTIN (KXAN) — An Austin-based on-demand delivery service is now owned by a favorite Texas grocery chain. H-E-B announced Thursday that Favor Delivery will become a subsidiary, keeping its brand and its 50,000 runners who work as contract delivery drivers.

Favor was founded in Austin in 2013 and currently operates in 50 Texas cities as a delivery service for pretty much anything. The service will add another option for H-E-B customers who can already pick up their groceries curbside or get items shipped to their doors. H-E-B’s Chief Operating Officer Martin Otto said their partnership and sharing experience, insight and resources will help grow both companies.

“We share similar values, including a commitment to excellence in customer service and to our greatest resource – our people,” Otto said. “Over the past two years, we have established a strong working relationship with Favor that has proven to be immensely successful for both companies.”

H-E-B also hopes this acquisition will grow its online presence and “meet customers’ evolving needs,” according to a release. It is working toward becoming a digital retail industry leader in Texas and hopes Favor’s technology and data-driven approach will help it better understand consumers. The companies did not disclose the terms of the transaction.

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