H-E-B plans to create a technology and innovation facility in Austin to bolster its grocery delivery business.
The two-story, 81,000-sq. ft. building will be the new home of H-E-B Digital, a wholly-owned subsidiary of the Texas grocery, and the corporate headquarters of Favor, a food delivery company H-E-B acquired earlier this year.
“Bringing H-E-B and Favor closer together will allow us to promote collaboration between our two companies as we strengthen our commitment to building out H-E-B’s omnichannel services,” stated Jag Bath, H-E-B’s Chief Digital Officer and Favor’s CEO and president.
Both H-E-B and Favor plan to hire several hundred more workers in product management, product design and software engineering.
H-E-B’s online grocery ordering, curbside pickup and delivery service is now available in more than 145 locations across Texas, and is on track to reach 165 stores this year.
The new tech and innovation center is the latest development in H-E-B’s ongoing efforts to expand into e-commerce. After acquiring Favor, H-E-B created a chief digital officer position and appointed Bath, Favor’s CEO, hired Mike Georgoff as H-E-B Digital’s chief product officer, and will turn a Houston location into an e-commerce fulfillment center.
For the full story, go to this week’s Food Institute Report.