[June 18, 2019]

Deliv Forms Subsidiary and Hires Drivers as Employees in California

Deliv, a leader in same day delivery that powers many of the nation's top retailers and businesses across 35 markets and 1,400 cities, today announced that it created a wholly owned subsidiary that will hire drivers as employees in California. The move was initiated by Deliv in response to the needs of its retail and business partners, its vast base of drivers as well as the ever evolving legal and regulatory landscape of the classification of independent contractors in California. Cost effective same day delivery depends on the technology and business model, not the classification of workers. Deliv was designed to power high quality service, positive economics and flexibility for drivers regardless of whether they are independent contractors or employees. It is for this reason that Deliv can easily create its new subsidiary.

The subsidiary, Deliv California, Inc. will first launch in Sacramento and roll out across California by the end of August. The subsidiary will license Deliv's proprietary platform that currently powers independent contractors across the country to now power Deliv California's new employee drivers.

A convergence of several factors drove Deliv to make this decision. The recent push from leading retailers to offer standard, one day delivery triggered a flood of inquiries to Deliv from companies interested in utilizing Deliv's technology and network in new ways to offer same day and next day delivery. For example, some companies have asked whether Deliv's business is flexible enough to be used with employees, and others have inquired if they can leverage Deliv's unique technology with their own employee workforce. Likewise, some drivers have communicatd their interest in receiving employee benefits while maintaining the flexibility they value.

"Deliv has always been at the forefront of changes in the market-- including predicting that same day would eventually replace two day and even one day delivery," said Daphne Carmeli, CEO and founder of Deliv. "In any disruptive market, you want to build as much flexibility in the system as possible to support changing requirements and preferences over time. We are happy that the decisions and investments we've made over the past seven years allow us to easily adjust to evolving market environments."

While most delivery companies and marketplaces have focused on providing on-demand, point-to-point deliveries, from its inception Deliv designed a unique business model with predictable, scheduled windows and multiple stop delivery routes. Another key point of differentiation is that independent contractors, and now employee drivers with Deliv California, enjoy the flexibility and predictability of choosing their preferred, multi hour blocks from a self service scheduling platform and are paid an hourly rate. The Deliv platform is unique as it predicts and balances supply with demand in real time and continually optimizes routes to fully utilize drivers across their self-scheduled hours. The company's technology combined with the density and efficiencies created by Deliv's business model makes Deliv's business agnostic to the classification of the driver.

Although Deliv California's drivers will be managed as employees, they will continue to be able to work as much or as little as they want. They can apply to join as part-time or full-time employees and will receive a broad range of compelling new benefits, even some that are above what is required by law. These benefits include health, vision, dental and even pet insurance as well as paid sick leave, retirement 401K plan, flexible spending accounts, reimbursable expenses, specialized training, career development opportunities and branded Deliv shirts. Full-time driver employees will also be offered stock option incentives and paid time off.

To learn more, please visit www.deliv.co.

About Deliv

Deliv is a leading, last mile logistics company that powers scheduled, same day delivery and returns for 5,000+ businesses including 25 of the nation's top national omnichannel retailers as well as leading e-commerce companies, local businesses and traditional parcel carriers. Focused exclusively on moving goods, Deliv operates as a service for delivering items rather than a marketplace that sells them.

The company currently operates in 35 markets and more than 1,400 cities. Deliv is headquartered in Menlo Park, California and is backed by global leaders such as Google (News - Alert), GM Ventures, United Parcel Service, Enterprise Holdings Ventures as well as leading financial investors and the nation's top REIT investors. For more information, visit www.deliv.co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190618005338/en/

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