Dive Brief:
- H-E-B has launched two-hour grocery delivery for essential items, according to a press release. The delivery will be powered by H-E-B subsidiary Favor and will allow Texas shoppers to order products from all H-E-B, Central Market and Joe V’s stores without any membership fees or order minimum.
- Customers can choose up to 25 items from a pre-selected list of groceries and essentials including dairy, meat, produce, beer and wine. A Favor delivery driver will leave the items on shoppers’ doorsteps to remain contact-free.
- H-E-B is offering the express delivery seven days a week from 11 a.m. to 6:30 p.m. Customers can order through the Favor app or website. The delivery fee is $9.95 but for a limited time, H-E-B is offering it for $4.98 and is also including a $10 tip for the driver.
Dive Insight:
As grocers grapple with a tidal wave of demand for grocery delivery and pickup, H-E-B has been able to create separate services that utilize its growing e-commerce resources, including on-demand company Favor. The result is a suite of fulfillment options that serve a wide variety of customers and customer needs
Through express delivery, H-E-B can tap its Favor network to fulfill smaller, more immediate orders faster and free up employees to focus on larger baskets. With a limited roster of items available for essential orders and a cap on how many items a customer can order, H-E-B is likely able to sort and stage an essentials area in its fulfillment warehouses that Favor workers can navigate to quickly fill orders and get them out the door.
H-E-B has announced several initiatives throughout the pandemic to prevent order backups. The company said it has increased the availability of curbside pickup and home delivery and now offers same-day, next day or future delivery dates. The grocer also expanded Favor delivery to 75 new markets and offers a seniors-only grocery delivery service.
Other grocers have been implementing various tactics to speed up order fulfillment and create a smoother experience for online shoppers. Instacart has introduced "order ahead" and "fast and flexible" ordering options to give customers more choice when they place orders. Amazon has turned its first-ever brick-and-mortar supermarket space into a dark store to help fill online orders, and Giant Eagle is operating two pickup- and delivery-only stores.
