Texas Grocer H-E-B Acquires Austin-Based Favor Delivery

In a smaller version of December’s Target-Shipt deal, Dallas-based grocery chain H-E-B is acquiring Favor Delivery of Austin, an app-based service with access to 50,000 “runners” across Texas, according to the Austin American Statesman. Financial terms were not disclosed.

About 25% of H-E-B stores offer curbside pickup, while some have home delivery using Favor and other services as well as its own drivers. It also sells groceries and other merchandise on its own ecommerce site.

H-E-B, a $25 billion company, has apparently not been very acquisitive but made the move as the market for online grocery orders continues to explode. Dallas and Austin in particular are seen as battlegrounds as Whole Foods is rolling out free two-hour delivery for Amazon Prime members in those markets. The others metros where the service is launching are Virginia Beach and Cincinnati, the latter home to competitor Kroger.

In the latest move by Amazon, the company is offering 5% cash back for Prime members who use the Amazon Visa card to make purchases at Whole Foods, a move calculated to boost both Prime membership and Whole Foods business.

You can read the entire H-E-B article here.

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