H-E-B retailer buys on-demand delivery start-up
H-E-B, the Texas grocery powerhouse, has made a strategic digital acquisition that will boost its food delivery capabilities.
The supermarket retailer is buying Favor Delivery, an on-demand delivery service headquartered in Austin, Texas. Favor will become a wholly owned subsidiary of H-E-B. The financial terms of the transaction were not disclosed.
Favor will continue to operate independently as a separate brand, led by Jag Bath, who will continue as CEO and president. H-E-B will also retain all of Favor’s employees, and its 50,000 runners, who operate as contract delivery drivers.
The partnership complements H-E-B’s brick-and-mortar operations, which continues to grow its online presence and e-commerce offering. For example, Favor will provide H-E-B with best-in-class consumer-facing technology and an advanced the on-demand delivery system. H-E-B will also leverage Favor’s data-driven approach to capture valuable insights to deliver the best customer experience possible, according to the grocer.
“Over the past two years, we have established a strong working relationship with Favor that has proven to be immensely successful for both companies,” said Martin Otto, CEO, H-E-B, which is based in San Antonio and operates more than 400 stores across Texas and northern Mexico. “We see a unique opportunity with this partnership to support and accelerate each other’s growth through the sharing of experience, insight and resources.”
This transaction is H-E-B’s latest strategic move to enhance its digital and delivery offerings. The grocer already offers home grocery delivery through its HEBtoYou program, as well as curbside pickup — a service that enables customers to order online and have their groceries delivered right to their cars at over 100 stores. The grocer’s e-commerce site also enables customers to order and ship grocery, drugstore and general merchandise products to 48 states and military bases worldwide.
The supermarket retailer is buying Favor Delivery, an on-demand delivery service headquartered in Austin, Texas. Favor will become a wholly owned subsidiary of H-E-B. The financial terms of the transaction were not disclosed.
Favor will continue to operate independently as a separate brand, led by Jag Bath, who will continue as CEO and president. H-E-B will also retain all of Favor’s employees, and its 50,000 runners, who operate as contract delivery drivers.
The partnership complements H-E-B’s brick-and-mortar operations, which continues to grow its online presence and e-commerce offering. For example, Favor will provide H-E-B with best-in-class consumer-facing technology and an advanced the on-demand delivery system. H-E-B will also leverage Favor’s data-driven approach to capture valuable insights to deliver the best customer experience possible, according to the grocer.
“Over the past two years, we have established a strong working relationship with Favor that has proven to be immensely successful for both companies,” said Martin Otto, CEO, H-E-B, which is based in San Antonio and operates more than 400 stores across Texas and northern Mexico. “We see a unique opportunity with this partnership to support and accelerate each other’s growth through the sharing of experience, insight and resources.”
This transaction is H-E-B’s latest strategic move to enhance its digital and delivery offerings. The grocer already offers home grocery delivery through its HEBtoYou program, as well as curbside pickup — a service that enables customers to order online and have their groceries delivered right to their cars at over 100 stores. The grocer’s e-commerce site also enables customers to order and ship grocery, drugstore and general merchandise products to 48 states and military bases worldwide.