Driven Deliveries Inc. (the "Company" or Driven) (OTC: DRVD), California's fastest growing online cannabis retailer and direct-to-consumer logistics company, announced today that the company has seen a 43%+ week over week increase in sales and is increasing inventory and adding additional drivers to meet the increased demand seen as a result of COVID-19 aka: coronavirus, and the precautions being implemented by State and Federal Governments.
The company reported sales volume increases of over 107% in some markets and 43% in aggregate across the State of California. "The demand is coming in all forms," said Christian Schenk, CEO Driven Deliveries Inc. "We are seeing a boost in new customer sign-ups, as well as increased engagement from our existing customers. All of our online stores are seeing higher order values as people are stocking up for what could be an extended stay-at-home period," he added.
The company reported the largest increases have been seen in age groups with customers between the ages of 30 and 40 in low to mid-density areas, which correlates to the recent trend of working from home, as many of California's schools are closed. Additional increases have been seen from younger, higher-income earners who have been given the option to work from home, as well as our Baby Boomer customers who are playing it safe by avoiding dispensaries.
"Non-peak times are now popular," said Sal Villaneuva, President of Driven Deliveries. "We are seeing customer orders starting at 10 am and continuing late into the night, which is another indicator of people being home versus at work or visiting crowded dispensaries," he added.
Many of the company's suppliers and distributors have turned to Driven to help them move through inventory that was originally slated for dispensaries, but given the health crisis, is sitting idle in the supply-chain. "We have been working with our brand partners to help them manage the volume adjustments. Delivery providers like us are seeing major increases but the fallout from closed or slower retail dispensaries are causing increased inventory pile-ups and potential issues with perishable products. We are in a unique position as we service 92% of California and move a disproportionate amount of inventory," added Villaneuva.
Ganjarunner was offering first-time customers discounts in an effort to increase access and reduce costs to those impacted by the coronavirus. Budee waived minimum order requirements and all brands including Mountain High Recreation continued to offer free delivery on all orders.
The company is planning promotions with brand partners in an effort to help them move through inventory and ensure the California cannabis community of businesses remains in good financial health through this economic uncertainty. "Our customers will start seeing some brand focused discounting such as BOGO and brand-wide savings up to 40% off as we help our customers and partners during these next several weeks," added Schenk.
In a message to customers last week, the company reiterated that additional precautions are in place to ensure the safety of customers and employees while encouraging the use of the delivery service versus shopping in crowds. The company issued a "stayhome" discount code across all it's ecommerce stores providing shoppers with an additional 20% discount.
Driven Deliveries, Inc., is the first publicly traded cannabis delivery service operating within the United States. Founded by experienced technology and cannabis executives, the company provides e-commerce solutions, online sales, and on-demand cannabis delivery, in select cities where allowed by law. Driven offers legal cannabis consumers the ability to purchase and receive their marijuana in a fast and convenient manner. By 2020, legitimate cannabis revenue in the U.S. market is projected to hit $23 billion. By leveraging consumer trends, and offering a proprietary, turnkey delivery system to its customers, management believes it is uniquely positioned to best serve the needs of the emerging cannabis industry and capture notable market share within the sector. For more information, please visit www.DRVD.com and review Driven's filings with the U.S. Securities and Exchange Commission.
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations, and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that we will achieve these plans, objectives, expectations or intentions. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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