Another delivery app just came to town but Philly’s homegrown option ain’t scared

Favor, an Austin-based delivery app, is officially operating in Philadelphia.
Favor says its runners, decked out in blue tuxedo shirts, will get you anything from food to laundry to groceries for a $5 delivery fee and in 35 minutes or less. The company will have three-to-five operations staffers based at Benjamin’s Desk and plans to hire a local operations manager. Philly is just one stop on Favor’s massive expansion plan: the company aims to be in 50 cities by the end of the year, thanks to a $13 million Series A.
FYI, you can use code “LOVEPHILLY” for a free delivery on your first go.
It’s an ultra-crowded market in Philadelphia right now, with Instacart, Postmates, Caviar and Philly’s homegrown, venture-backed goPuff, all competing for dominance. (There’s also Habitat, founded by Temple grad Andrew Nakkache, which focuses on food truck delivery on college campuses.)
We called up Rafael Ilishayev, goPuff’s 23-year-old cofounder, to ask him what he thought about Favor’s latest expansion. (FWIW, goPuff has raised some venture capital but nothing close to $13 million.)
“They’re not really a threat to us,” he said, while driving in San Francisco, scouting out a possible expansion of his own.
goPuff, he reminded us, has a lower delivery fee ($1.95), promises delivery in 30 minutes or less and is open 24 hours. The service is actually on-demand, he said, as opposed to competitors, who can’t deliver a certain item if a place is closed. (goPuff is slightly different from its competitors because it doesn’t deliver items or meals from an independent business, like a restaurant or a grocery store. Instead, they have their own warehouse in each market they’re in.)
Plus, they now deliver beer in Philadelphia. (Instacart, on the other hand, was forced to stop delivery liquor and wine in Philadelphia, due to a decision by the Liquor Control Board.)
goPuff actually expanded to Austin, Favor’s flagship market and headquarters, six months ago.
“We’re thriving in their home city,” Ilishayev said.
goPuff is in six markets and next plans to expand to Seattle and Arizona. Ilishayev is heading to Chicago next week to scout another possible expansion.
All right, delivery apps, carry on.