Favor Seeded to Become Go-To Delivery Service in College Towns
Publication: Wall Street Journal
A food-delivery and all-purpose courier service called Favor (NeighborFavor Inc.) has raised $2 million in seed funding to grow beyond the college campuses and restaurants where it has mostly focused so far.
The Austin startup’s app allows users to order anything they want from stores and restaurants in the area, have a courier go pick up the items, and have them delivered within 35 minutes to their door. Favor makes revenue by charging users a $5 delivery fee for orders under $50.
The company has logged about $2.7 million in transactions since starting about three years ago and its number of deliveries in August were double that of March, executives said, though they didn’t provide revenue figures. More than 53,000 customers have signed up for the service, they said.
Up until now Favor has focused on cities with lots of college students like Boston; Austin, Texas; and San Luis Obispo, Calif., home of California Polytechnic State University.
Delivery people who work for Favor must maintain an average customer rating of 4.8 stars out of 5 to stay on the platform long term. They are guaranteed to make $9 an hour, though on average they make $14 an hour, said Zac Maurais, the company’s co-founder and chief marketing officer.
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