Was Favor's acquisition a success or failure?

For investors, the $321M H-E-B acquisition was a strong return on $30M raised. As an independent company competing in on-demand delivery, it represents a market exit before national platforms could fully commoditize the sector.

What is Favor doing now?

Favor continues to operate as H-E-B's delivery arm in Texas, focused on grocery and local delivery for the H-E-B ecosystem rather than competing independently in the broader delivery marketplace.

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// HALL OF FLAME · STARTUP AUTOPSY

Founded	2013
Closed	2018
Country	USA
Sector	Ecommerce
Total raised	30
Collapse type	Acqui-hire
Founder	Zac Maurais

Favor Delivery

"Texas's beloved local delivery app — absorbed by a grocery chain as national giants arrived."

$30M

RAISED

—

EMPLOYEES

MONTHS

acquisition gone wrongAcqui-hire

// Fatal mistake: Regional density advantage couldn't survive DoorDash and UberEats national rollout with unlimited capital

Key Events Timeline

2013-01

FOUNDING

Favor Delivery founded in Austin, Texas with a 'runner' model for on-demand delivery of almost anything

2014-06

FUNDING

Series A funding round completed, enabling expansion across Texas markets

2016

PRODUCT LAUNCH

Favor achieves 50% market share in Austin; dominates Houston market with strong local brand affinity

2017-09

DOWN ROUND

Venture funding dries up as DoorDash and UberEats enter Texas with massive subsidies, eroding unit economics

2018-06

ACQUISITION ATTEMPT

Acquired by H-E-B grocery chain for $321M; Favor Delivery ceases independent operations as challenger to national delivery incumbents

🔥 Hall of Flame 50%🏆 Hall of Fame 38%

Favor Delivery built genuine local brand affinity in Texas, dominating the Austin and Houston markets with a "runner" model where couriers could fetch almost anything on demand.

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More Ecommerce →More from USA →More acquisition gone wrong failures →Raised: 30

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// THE ECOMMERCE GRAVEYARD DOESN'T END HERE

Favor Delivery followed a documented pattern. Identify the same signals in any company before they reach the point of no return.

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