Favor– who tout themselves as “the easiest way to get anything delivered”- has raised $13 million in a Series A funding round earlier last week.
Founded two years ago in Austin, U.S., Favor now offers services in Boston, Dallas and Houston and the latest investment will help it grow into seven to 10 new cities this year. Apart from helping expand the mobile service, the funds will help expand the 25-strong team by hiring engineers and customer support.
“We’ve got room to expand, but I think it’s going to fill up fast like the previous house did,” co-founder Zac Maurais said, according to the Austin-American Statesman. “The market is really hot right now. Now that the technology to power a business like this has arrived, and everyone has smartphones and apps, we think we can grow really fast.”
Favor has raised $2 million in an earlier funding round, this one was led by the Austin-based S3 Ventures, with Silverton Partners of Austin, Silicon Valley investor Tim Draper and other private investors participating.
The Favor mobile app allows smartphone users to get “anything” delivered within 35 minutes, by a someone in one of Favor’s signature tuxedo tees. The cost for the service is $5 per trip, plus 5 percent of the cost of the items and tip to the courier.
Having completed over 300,000 deliveries since its inception, Favor now has more than 1,000 drivers who earn an average of about $15 an hour, Maurais said.
Image credit: Favor
