H-E-B has acquired Favor, the on-demand delivery service out of Texas.
Favor will continue to operate as an independent wholly owned subsidiary of the grocery chain.
The company first launched in 2013, bringing a Texas-tailored approach to on-demand delivery. While many on-demand services, such as Postmates, focus on high-density areas like NYC and San Francisco, Favor built a product that serves the sprawling cities of Texas.
Users could order food from a restaurant, or any item from a local store, to be purchased and delivered to wherever they were, all through an app. The idea itself isn’t revolutionary, but Favor claims to be the first on-demand service to become profitable.