To tell you the truth, I've written the phrase "grocery games" probably 374 times since Amazon announced it would purchase Whole Foods Market last year. Since then, we've reported on: Target acquiring Shipt and launching same-day delivery in the Southwest as of today; Amazon promising free 2-hour delivery from Whole Foods; Costco launching its own delivery service; and Sam's Club offering free shipping to Plus members. These grocery games are hard to keep track of, but Texans will soon have another reason to never leave the house for groceries again. H-E-B announced that it bought Favor Delivery.
What does that mean for you? While the terms of the transaction were not disclosed, it means that H-E-B will grow its online presence in order to meet customers' needs and expectations. Per the press release, the largest private employer in Texas will operate independently from Favor, but H-E-B will retain Favor's employees and over 50,000 Runners, who are Favor's contract delivery drivers.
This morning, we reopened our Kingwood store after being closed for 145 days to recover from #Harvey damage. We had many customers excited to see us - among them these Kingwood Moms who even made shirts! If you’re in the Kingwood area, stop by and check out our better than ever store. #HoustonStrong #LHABack2Biz
As H-E-B's Chief Operating Officer Martin Otto stated in the release,
"I am thrilled to have H-E-B join forces with another well-respected and innovative Texas company," said Martin Otto, H-E-B's Chief Operating Officer. "We share similar values, including a commitment to excellence in customer service and to our greatest resource - our people. 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."
While you probably know H-E-B, you might not be familiar with Favor Delivery. Launched in 2013, the delivery service has since expanded to 50 cities in Texas where, as the press release states, "it is currently the best-rated delivery service." With its ability to scale proven as the first U.S. on-demand delivery service to do so, Favor proved its worth and H-E-B knew it immediately.
Favor's Chief Executive Officer and President, Jag Bath, will continue to operate Favor's separate brand under H-E-B. His enthusiasm to join the H-E-B family is evident in his statement,
"We could not be more excited to be part of H-E-B. I am incredibly proud of our team's success and the business we have built at Favor. H-E-B's extensive resources, capital and retail food industry experience will enable us to further build on our momentum and significantly accelerate our growth throughout Texas."
While there's no word on if the service will expand to H-E-B stores in Mexico or exactly how Favor Delivery will play into H-E-B's current initiatives under HEBtoYou and Curbside Pick-Up, we can expect to see some exciting new updates in the future.