HEB partnering with on-demand delivery service

Galtero Lara
Febrero 15, 2018

A new partnership between Texas's largest grocery chain and an upstart home-delivery company could change how Texans do their grocery shopping.

San Antonio-H-E-B, the retail and grocery store giant that operates 400 stores in Texas and Mexico, is acquiring delivery app Favor.

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. Founded in 2013 by Zac Maurais and Ben Doherty, Austin-based Favor will operate independently as a separate brand from H-E-B, according to a press release.

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"We could not be more excited to be part of H-E-B", Favor Chief Executive Officer and President Jag Bath said in a statement. "We share similar values, including a commitment to excellence in customer service and to our greatest resource - our people. We see a unique opportunity with this partnership to support and accelerate each other's growth through the sharing of experience, insight and resources". At its largest, Favor had expanded to more than two dozen cities across North America, but decided in 2017 to cut back its operations to Texas only in order to seek profitability. "I am incredibly proud of our team's success and the business we have built at Favor", he said. The company added a $22 million Series B round of funding previous year, led by Austin venture capital firm S3 Ventures, to bring its service to more cities in Texas.

This transaction is the latest in a series of strategic investments in technology and partnerships that H-E-B has forged to enhance its digital and delivery offerings in Texas. 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.

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