A new partnership between Texas’s largest grocery chain and an upstart home-delivery company could change how Texans do their grocery shopping.
H-E-B has announced that Favor Delivery, an on-demand delivery service, will become a subsidiary wholly owned by the grocery chain.
H-E-B says that the Austin-based delivery service will continue to operate independently as a separate brand. The grocery chain will also retain all of Favor’s employees as well as the contract delivery drivers, known as runners.
In a press release, H-E-B says that through the partnership, they are gaining access to “best-in-class consumer-facing technology and the on-demand company’s advanced delivery system. “
H-E-B’s Chief Operating Officer, Martin, Otto says the companies share similar values, and that has led to a successful partnership. 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,” Otto says.
Favor’s C-E-O Jag Bath says the company couldn’t be more excited to become a part of H-E-B. “I am incredibly proud of our team’s success and the business we have built at Favor,” he said.
