Texas Grocery Chain HEB Buys On-Demand Delivery Service Favor

Texas’ favorite grocery and retail chain HEB bought Austin-based on-demand delivery startup Favor today. The full amount of the transaction price wasn’t revealed.

Favor will still exist on its own, according to a release, under chief executive officer and president Jag Bath. However, the employees will become HEB employees. The 50,000+ runners (those who deliver food and goods) will remain as independent contractors. The two companies will support each other, with Favor accessing HEB’s data and goods and HEB being able to use Favor’s technology.

HEB already offers curbside pickup orders where gathered orders are delivered right to peoples’ cars parked outside of the stores. The grocery store actually partnered with Favor for this service in certain cities.

Similarly, after Amazon bought Whole Foods last summer, the supermarket offers one- to two-hour Amazon Prime Now deliveries in certain cities, including Austin.

Favor started in Austin in 2013, and expanded into 50 Texas cities. Based in San Antonio, HEB has 400 stores in Texas and Mexico, and just celebrated its 113th anniversary.

This article has been updated to reflect that the Favor runners will remain as independent contractors.