H‑E‑B acquiring Favor Delivery

San Antonio, Texas-based H‑E‑B is acquiring Favor Delivery, an on-demand delivery service headquartered in Austin, Texas. Favor Delivery will become a wholly owned subsidiary of H-E-B and continue to operate independently as a separate brand under President and CEO Jag Bath. The terms of the transaction were not disclosed.

“With this powerful partnership, H‑E‑B accelerates its path to become a digital retail industry leader in Texas, enabling customers to choose how they shop, pay for and receive products,” the company stated in a press release. “The partnership also complements H‑E‑B's brick‑and‑mortar operations by growing its online presence to meet customers' evolving needs and expectations.”

Founded in 2013, Favor Delivery has quickly expanded its presence to 50 cities across Texas. In 2017, Favor more than doubled its footprint across the state and became the first U.S. on-demand delivery company to achieve profitability at scale, according to H-E-B.

"We share similar values, including a commitment to excellence in customer service and to our greatest resource – our people,” stated Martin Otto, H-E-B’s chief operating officer. Over the past two years, we have established a strong working relationship with Favor that has proven to be immensely successful for both companies. We see a unique opportunity with this partnership to support and accelerate each other's growth through the sharing of experience, insight and resources."