H-E-B grocery stores based in Texas has been a household name since 1904. Since then they have expanded their stores to include more than just groceries. They have become one of the nation’s leading independent food retailers and the largest private employer in Texas.
In February H-E-B grocery stores announced that Favor Delivery App, an on‑demand delivery service headquartered in Austin, will become a wholly owned subsidiary. As of now Favor will continue to operate independently as a separate brand led by Chief Executive Officer and President, Jag Bath. H‑E‑B will retain all of Favor’s employees and its 50,000 Runners, who operate as contract delivery drivers.
This is just one of the many strategic moves H.E.B. has done to advance their technology in the store and their on‑demand advanced delivery system. Per H-E-B, they will also leverage Favor’s data‑driven approach to capture valuable insights to deliver the best customer experience possible.
H-E-B already offers customers the convenience of “Curbside Pickup” at over 100 stores. The “Curbside Pickup” service enables customers to order online and have their groceries delivered right to their cars. The “Curbside Pickup” at my local H.E.B seems to be working but do note the fee for that service is $4.95 each purchase.
HEB.com also offers customers the ability to order and ship grocery, drugstore and general merchandise products to 48 states and military bases worldwide.
It will be interesting to see how the H-E-B acquisition of Favor will affect the company and their employees but only time can tell. As of now no other information has been released about the details of this purchase. For more detailed information about the acquisition between Favor and HEB click here.
H-E-B Grocery Company, LP, also known as HEB Grocery Stores, is an American privately held supermarket chain based in San Antonio, Texas, with more than 350 stores throughout the U.S. state of Texas, as well as in northeast Mexico. HEB also operates Central Market, an upscale organic and fine foods retailer.
Founded in 2013, Favor has quickly expanded its presence to 50 cities across the state of Texas, where it is currently the best-rated delivery service. 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.