H-E-B Acquires Delivery Company

Supermarket chain H-E-B has acquired Favor Delivery, an on-demand delivery service based in Austin, TX. Terms of the deal were not disclosed.

According to H-E-B officials, the deal accelerates the company’s effort to expand its digital offerings and enables its shoppers to choose how they shop, pay for and receive products.

Favor will continue to operate independently as a separate brand led by Jag Bath, its president and CEO, and H-E-B will retain all of Favor’s employees and its 50,000 runners, who operate as contract delivery drivers.

“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, H-E-B’s CEO. “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 the latest in a series of investments in technology and partnerships by H-E-B in an effort to enhance its digital and delivery offerings. Home grocery delivery is already a key part of its offering through HEBtoYou. The company also already offers customers the convenience of curbside pickup at more than 100 stores.