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Suburban Boom: Favor Doubles Down on Austin Area On-Demand Delivery



Favor may have withdrawn from other states. But it's sticking true to its plan to go big in Texas.

The Austin-based startup announced Monday it's doubling its Austin area coverage. The new map includes parts of Pfugerville, Daffan, Cedar Park, Brushy Creek, Round Rock, Bee Cave, Cedar Valley, Manchaca and Bluff Springs. The expanded turf also means new restaurants and services are in range, including Greenhouse Craft Food, Salt Traders Coastal Cooking and La Bodega Gourmet.

New Favor users in the new territory also get a little incentive -- $50 worth of delivery credit through July 31.

Meanwhile, the Austin company, which was founded in 2013, is making a big push to hire runners in the new areas. It currently has about 20,000 runners.

As part of the news, Favor is also announcing expanded hours -- 7 a.m. to 3 a.m. everyday.

Earlier this year, Favor announced it would pull out of five other states where it had expanded to in recent years. At its peak, it operated in 23 cities. After restructuring to focus on Texas, the company now operates in 15 cities, including Dallas, Fort Worth and several suburbs; College Station; Houston and several of its suburbs; San Antonio, and San Marcos.

The startup has raised $16.9 million since its founding in 2011. Its lead investors include Austin-based S3 Ventures and Silverton Partners, which led Favor's most recent round -- a $13 million Series A in March 2015.


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