Favor Delivery
Favor Delivery is a Texas-exclusive same-day delivery platform and H-E-B subsidiary connecting consumers with restaurants, groceries, and local merchants through 100,000+ independent courier Runners across 400+ Texas cities, with cumulative deliveries exceeding 70 million.
- Company typePrivate
- Founded2013
- HeadquartersAustin, United States
- Headcount101–250
- GTM typeB2B and B2C
- OfferingServices
What Favor Delivery does
Favor Delivery is a Texas-exclusive, same-day delivery platform and wholly-owned subsidiary of H-E-B, the San Antonio-based grocery chain. Founded in 2013 in Austin, the company operates a two-sided marketplace connecting Texas consumers with local restaurants, H-E-B grocery stores, and other merchants through a network of more than 100,000 independent contractor couriers branded as "Runners." Operations span 400+ Texas cities, with the platform having facilitated more than 70 million deliveries cumulatively and serving 28,000+ merchant businesses.
The product surface includes the consumer-facing Favor Delivery App (iOS/Android/web), the separate Favor Runner App for couriers, Favor Marketplace for merchant marketing and order acquisition, Favor Fleet for last-mile delivery-as-a-service (serving 200+ cities with a 35-minute average delivery time), H-E-B Now for on-demand grocery delivery of up to 15 items in 45 minutes or less, the Favor Gold subscription membership, and digital gift cards. Technology integrations include POS connections to Olo and Toast, a Favor Fleet API for merchant-side embedding, and a recent Thoughtworks technology partnership aimed at personalization and privacy. The company positions itself with deliberate geographic confinement to Texas, leveraging regulatory simplicity, regional brand affinity ("Texas hospitality"), and structural advantages from its H-E-B parentage that competitors cannot replicate.
Revenue is generated through a multi-stream model: per-order delivery fees ($6 base) and percentage-based service fees charged to consumers; subscription revenue from Favor Gold memberships; marketplace commissions and marketing fees from merchants on Favor Marketplace; and last-mile delivery revenue from Favor Fleet. Runners operate as independent contractors with required minimum gratuities, insulating the platform from W-2 payroll costs. The business is supported by H-E-B ownership rather than external venture funding, with historical funding rounds totaling approximately $34M ($12M in 2015 and $22M in 2017 from S3 Ventures, Silverton Partners, Draper Associates) pre-dating the H-E-B acquisition.
Favor Delivery firmographics
Firmographics- Name
- Favor Delivery
- Legal name
- NeighborFavor Inc.
- Website
- https://favordelivery.com
- Company type
- Private
- Founded year
- 2013
- Operating status
- Operating
- Headcount range
- 101–250 employees
- Short description
- Favor Delivery is a Texas-exclusive same-day delivery platform and H-E-B subsidiary connecting consumers with restaurants, groceries, and local merchants through 100,000+ independent courier Runners across 400+ Texas cities, with cumulative deliveries exceeding 70 million.
- Ownership category
- akta.pro rank
Favor Delivery industry classification
Industry- Product category
- On-Demand Delivery Services
- NAICS
- Couriers and Express Delivery Services (4921), Local Messengers and Local Delivery (4922)
- SIC
- Trucking & Courier Services (No Air) (4210)
- akta.pro primary industry
- Grocery & Convenience Delivery (TLAAADAD)
- akta.pro secondary industries
- Crowdsourced Grocery & Convenience Delivery (TLAAAGAD), Instant / Ultrafast Delivery (10–60 min, dark-store enabled) (TLAAAGAL), Scheduled Delivery & Subscription Grocery (CRAHAIAC), Same-Day Gift Delivery & Courier Fulfillment (HSACANAI)
Keywords
Where Favor Delivery is headquartered
LocationHeadquarters
- HQ city
- Austin
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Favor Delivery business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- Delivery Fees: Standard delivery fee charged per order, with $6 as the base rate that may vary by location or merchant. This is the primary fee charged to customers for using the delivery service.
- Service Fees: Service fee charged based on a percentage of the total order amount, varying with order size. Applied in addition to delivery fees.
- Favor Gold Subscription: Subscription membership program offering perks such as H-E-B discounts, local restaurant savings, and unlimited $0 delivery fees. Provides recurring revenue from subscription fees.
- Merchant Partnership Revenue: Revenue from merchant partnerships through the Favor Marketplace platform where restaurants pay for marketing and delivery solutions
- Small Order Fees: Fees applied to small orders which may be disclosed before checkout or charged by the merchant in-store
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Standard Delivery - $6 base delivery fee |
| Subscription | Monthly | Favor Gold Membership |
| Transaction based/ take rate | Pay-as-you-go | Minimum Tip Requirements |
| One time/ perpetual license | Pay-as-you-go | Gift Cards |
Go-to-market motion1 record
Distribution channels7 records
Marketing channels7 records
Favor Delivery product offering
Product offeringCore offering
Favor Delivery operates an on-demand delivery platform exclusively in Texas, connecting individual consumers with local restaurants, H-E-B grocery stores, and other merchants through a network of 100,000+ independent contractor Runners via iOS and Android mobile apps. The platform offers consumer delivery (Favor App, H-E-B Now grocery delivery, Favor Gold subscription membership, and digital gift cards) and merchant-facing solutions including Favor Marketplace for app-based order acquisition and Favor Fleet for last-mile fulfillment with API access. Pricing is transaction-based with a $6 base delivery fee plus percentage-based service fees and optional Runner tips, supplemented by the Favor Gold subscription for unlimited $0 delivery fees.
Product overview
Favor Delivery operates as a unified platform connecting consumers with independent courier Runners for on-demand delivery of food, groceries, and retail items exclusively in Texas. The core Favor Delivery App serves consumers, while the Favor Runner App enables independent contractors to fulfill deliveries. The company offers merchant-facing solutions including Favor Marketplace for restaurants seeking app-based delivery and Favor Fleet for businesses needing last-mile fulfillment support. Supplementary offerings include the H-E-B Now grocery delivery feature, the Favor Gold subscription membership program, and digital gift cards. The platform is part of H-E-B and maintains operations across 400+ Texas cities with over 100,000 Runners.
Differentiator
Problem solved
Functional benefit
Brands
- Favor Gold: A subscription membership program offering perks including H-E-B discounts, local restaurant savings, and unlimited $0 delivery fees.
- Favor Marketplace
- Favor Fleet
Products and services
- Favor Delivery App Primary consumer-facing mobile application (iOS and Android) for on-demand delivery of food, groceries, and other products, connecting individual Texas consumers with independent contractor Runner couriers for restaurant and retail delivery.
- Favor Runner App Separate mobile application (iOS and Android) used by independent contractor delivery drivers (called Runners) to accept and fulfill delivery orders across Texas.
- H-E-B Now On-demand grocery delivery offering within the Favor app enabling delivery of up to 15 items from H-E-B stores in 45 minutes or less to Texas consumers.
- Favor Gold Subscription membership program offering unlimited $0 delivery fees, H-E-B discounts, and local restaurant savings for Texas consumers on the Favor platform.
- Favor Gift Cards Digital gift cards available in customizable designs with amounts from $5 to $500, redeemable via the Favor app for orders excluding alcohol and other gift cards, and purchasable online or at H-E-B retail locations.
- Favor Marketplace Marketing and delivery solution for restaurants and merchants, enabling order acquisition through the Favor app with Runner-based fulfillment; has generated $100+ million in partner revenue annually.
- Favor Fleet Last-mile delivery solution for merchants requiring in-house delivery support, utilizing Favor's network of 100,000+ Runners to fulfill orders placed through merchant websites or channel partners; serves 200+ cities with a 35-minute average delivery time and is accessible via API.
Quantifiable outcome
- 45 minutes or less average delivery time for standard orders
- +1 more outcomes
Companies that use Favor Delivery
Customer profileNamed customers3 records
Segments3 records
Ideal customer profiles3 records
Favor Delivery technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature5 records
Favor Delivery partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core, flagship and minor.
- ThoughtworkscoreStrategic technology partnership to transform the on-demand shopping and delivery experience. The collaboration focuses on integrating advanced technologies, enhancing customer privacy options, and ensuring more personalized service.
- H-E-BflagshipFavor is a subsidiary of San Antonio-based H-E-B grocery chain. The partnership enables H-E-B Now on-demand grocery delivery service within the Favor app, allowing Texans to order essentials from H-E-B with delivery in 45 minutes or less. This is a core component of Favor's service offering.
- Texas Restaurant AssociationminorFavor partners with the Texas Restaurant Association for merchant acquisition and referral of restaurant partners to the Favor platform.
Scale indicators10 records
Recent moves6 records
Expansion highlights6 records
Favor Delivery competitors and assessment
Company assessmentDirect peers
- DoorDash: Largest U.S. third-party food delivery platform; directly competes for the same Texas restaurants, consumers, and couriers that Favor serves. Operates a parallel crowdsourced delivery model with a comparable mobile-app consumer experience.
- Uber Eats: National on-demand food delivery arm of Uber; competes head-to-head in Texas's major metros with similar crowdsourced driver model and restaurant marketplace dynamics as Favor.
- Instacart: Leading U.S. online grocery delivery platform; directly comparable to Favor's H-E-B Now grocery delivery use case, particularly as H-E-B's online grocery partner competes with Instacart's retail partnerships across Texas.
- Gopuff: Instant-needs delivery platform operating vertically integrated micro-fulfillment centers; competes for the same ultrafast, convenience-oriented Texas consumer and overlaps with Favor's grocery and convenience ambitions.
- Shipt: Same-day delivery service owned by Target; competes for grocery and general merchandise delivery demand in Texas metros, particularly with Target's same-day delivery promise.
Regional players
- Waitr: Regional U.S. food delivery platform historically focused on smaller markets; an early comparable for Favor's Texas-only regional strategy before being absorbed by ASAP.
Broad incumbents
- Caviar: Premium restaurant delivery service owned by Square/Block; overlaps with Favor's restaurant marketplace offering with a similar curated merchant approach, though Caviar operates at a national scale as part of a larger fintech portfolio.
- Grubhub: Established U.S. food delivery platform owned by Wonder Group; competes in Texas's college and urban markets with comparable restaurant marketplace functionality.
Others
- Olo: Restaurant SaaS provider whose ordering and dispatch platform integrates with Favor's merchant partners; an ecosystem/technology peer that enables Favor's POS integrations rather than a direct competitor.
- Toast: Restaurant POS platform whose integration with Favor allows seamless order handoff to Runners; an enabling technology peer in Favor's merchant stack rather than a direct competitor.
Market position
Strengths5 records
Weaknesses4 records
Competitive moat3 records
Key risks5 records
Key highlights7 records
Customer concentration
Favor Delivery social profiles
Digital presenceFavor Delivery financial estimates
Financial estimateRevenue estimate
Valuation estimate
Favor Delivery leadership team
Management profileNumber of profiles
Profiles8 records
Favor Delivery funding detail
Funding detailFunding overview
Funding rounds3 records
Investors5 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Favor Delivery M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Favor Delivery
What does Favor Delivery do?
Favor Delivery operates an on-demand delivery platform exclusively in Texas, connecting individual consumers with local restaurants, H-E-B grocery stores, and other merchants through a network of 100,000+ independent contractor Runners via iOS and Android mobile apps. The platform offers consumer delivery (Favor App, H-E-B Now grocery delivery, Favor Gold subscription membership, and digital gift cards) and merchant-facing solutions including Favor Marketplace for app-based order acquisition and Favor Fleet for last-mile fulfillment with API access. Pricing is transaction-based with a $6 base delivery fee plus percentage-based service fees and optional Runner tips, supplemented by the Favor Gold subscription for unlimited $0 delivery fees.
Is Favor Delivery a public or private company?
Favor Delivery is a private company. It is classified as corporate owned and is currently operating.
When was Favor Delivery founded?
Favor Delivery was founded in 2013. It employs 101 to 250 people.
Where is Favor Delivery based?
Favor Delivery is headquartered in Austin, United States, in the North America region.
How does Favor Delivery make money?
Five revenue lines are on record. Delivery Fees are the primary driver. The others are service Fees, favor Gold Subscription, merchant Partnership Revenue and small Order Fees.
Who are Favor Delivery's main competitors?
Direct peers on record are DoorDash, Uber Eats, Instacart, Gopuff and Shipt. Waitr is listed as a regional player. Broad incumbents are Caviar and Grubhub. Others are Olo and Toast.
Does Favor Delivery have an API?
No public API is recorded for Favor Delivery.
What industry is Favor Delivery in?
Favor Delivery's product category is On-Demand Delivery Services. Its primary akta.pro industry code is TLAAADAD, Grocery & Convenience Delivery, with a secondary code of TLAAAGAD, Crowdsourced Grocery & Convenience Delivery. Its NAICS code is 4921 and its SIC code is 4210.