H-E-B acquires food-delivery company

On Feb. 15, Texas-based grocery giant H-E-B announced it had purchased Favor Delivery, an on-demand delivery service headquartered in Austin. Favor Delivery, that distributes restaurant meals and groceries via a mobile app, will become a wholly-owned subsidiary of H-E-B.

H-E-B operates 400 stores in Texas and Mexico. Favor will retain its brand and continue to operate independently and will be led by CEO and President, Jag Bath. H‑E‑B will retain all of Favor’s employees and 50,000 runners, who operate as contract delivery drivers. Founded in 2013, Favor quickly expanded to 50 cities across Texas. In 2017, it more than doubled its footprint across the state.

“It is our intent to continue to grow Favor just as it is our intent to grow H-E-B,” Martin Otto COO of H-E-B said. “We’re very excited about this because of the opportunities it will afford both companies to better serve our customers,” Otto said.

“We could not be more excited to be part of H‑E‑B,” said Bath. “I am incredibly proud of our team’s success and the business we have built at Favor,” he said. “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.”