On-demand delivery specialist Favor scales back coverage
Austin-based on-demand delivery specialist Favor has reportedly scaled back its geographic coverage in the US. According to a report published by TechCrunch on Friday (17 June), Favor is closing its operations in five cities: Chicago, Philadelphia, Atlanta, Miami and Washington, DC. Favor’s official website does not officially confirm the withdrawal from these markets, but it does note that its coverage is currently confined to 18 cities (18 in the US, plus Toronto in Canada).
TechCrunch said that Jag Bath, the CEO of Favor, stated in a prepared statement that, “after experimenting in cities of varying size, Favor is choosing to employ its smart-scaling growth plan in tier 2 markets”.
According to TechCrunch, Favor is focusing on tier two and three cities, rather than the tier one conurbations, because there tends to be less competition, and their parking facilities, traffic conditions and restaurant wait-times are more conducive to an efficient on-demand delivery service.
On its website, Favor proudly reproduces a testimonial from CNBC saying that “the company will deliver just about anything, anywhere, anytime”. In practice, food deliveries are a major part of the business.
