Favor is the latest app-based delivery system to come to town. How will it handle the competition?
A Texas-based on-demand delivery app has come to Philadelphia, promising to deliver goods — including food from local restaurants — to residents in less than an hour, competing with companies already in the market like Instacart and Postmates.
Favor of Austin, Texas., launched in June 2013 and has since expanded to more than 20 cities across the United States with more than 10,000 so-called personal delivery assistants, or "runners."
"We've always been excited about Philly," said Ben Doherty, cofounder and COO. "I researched the market a long time ago, and I thought it was a really great potential place to launch."
"Overall, Philly is a dense market; it has lots of students and young working professionals," Doherty said. "That's generally who we focus on for our market."
Favor's runners will serve Philadelphia neighborhoods, including Temple University, University City, Northern Liberties, Fishtown, Fairmount, Center City and Old City.
The app connects customers to a runner, who will pick up and deliver "anything from tacos, to groceries, to your laundry that you’ve neglected to pick up," according to Favor.
"We do deliver anything you want," Doherty said. "That's a strong value proposition. Because they're personal assistants, they can act on your behalf and purchase anything you need."
Delivery times average about 35 minutes, according to the company. There is a flat deliver fee rate of $5 in Philadelphia plus 5 percent of the cost of the item ordered, Doherty said.
Original source: Philadelphia Business Journal
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