Deliv announced June 19 that it has created a new wholly-owned subsidiary that will hire drivers as employees instead of contractors in California. The move was initiated to respond to the needs of its retail and business partners, the Menlo Park, Calif.-based company said.
“Deliv has always been at the forefront of changes in the market, including predicting that same-day [delivery] 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.”
The new subsidiary, Deliv California Inc. will launch first in Sacramento, and roll out further across the state through August. The company said it would license Deliv’s proprietary platform, originally put in place for independent contractors, for use by Deliv California’s new employee drivers.
Technology and Employee Buy-In Are Both Key
The recent push from leading retailers and Deliv's biggest industry partners to offer a standard, one-day delivery triggered a flood of inquiries to Deliv from other companies interested in utilizing its technology and existing network, the company said. While most delivery companies and marketplaces have focused on providing on-demand, point-to-point deliveries, Deliv said that it has approached the market with what it deems to be a more unique business model with predictable, scheduled windows and multiple stop delivery routes.
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, in keeping with what is now essentially a standard practice in grocery delivery. Deliv's new employees can apply to join as part-time or full-time employees, and the company said they will receive a broad range of benefits that include health, vision, dental and even pet insurance, as well as paid sick leave, a retirement plan, and ongoing training and career development opportunities.