Driven Deliveries' May Gross Collections Reach $2.1 Million, an Increase of 20% Compared to April
Consolidated Cost of Acquisition (COA) for new customers also improved for the fourth straight month.The average COA for May was $9.28.
LOS ANGELES, June 3, 2020 /PRNewswire/ -- Driven Deliveries Inc. (the "Company" or Driven) (OTCQB: DRVD), one of California's fastest growing online cannabis retailers and direct-to-consumer logistics company, announced today it achieved over $2.1 million in gross collections in May, an increase of 20.4% compared to April.
The Company's online retail divisions, Ganjarunner and Budee, now represent more than 225,000 registered cannabis consumers. The Company also reported it acquired more than 5,300 new customers and delivered more than 25,300 orders to consumer doorsteps, representing an increase of 18% over the previous month. "We have continued the momentum seen in April and don't anticipate any slowdowns despite continued operational anomalies resulting from shelter in place orders and recent curfews imposed in some of our markets," said Christian Schenk, CEO Driven Deliveries.
Consolidated Cost of Acquisition (COA) for new customers also improved for the fourth straight month. The average COA for May was $9.28. New customer orders represented $552,742 in incremental revenue and accounted for 28% of total revenue. Customer retention, calculated as the amount of newly acquired customers who purchased a second time, also improved to 89%, up 7% over the previous month. Ontime order percentage, calculated based on the number of deliveries that are executed in under 90 minutes, exceeded 88% in May, up 3% from the previous month. "World-class customer experience is one of the most important differentiators of our company and I am proud of the team's focus on execution and on-time delivery. "Strive for 5" has been core to our mission since the very beginning. Our 4.8 star rating is a testament to our continued focus in this area," said Sal Villanueva, President Driven Deliveries.
The Company announced yesterday that it has successfully launched its new brand to consumer program, Brand Budee. The solution enables brands to sell directly to consumers via their own website, shopping products available to purchase based on their location. Brand Budee provides consumers direct access to some of the most renowned cannabis brands in the space with delivery in under 90 minutes across the State of California. More than 15 brands now live on the platform and have contributed to more than 1000 new customer sign-ups, 338 new customer orders of which carried an average order value (AOV) of $102.
"The organization as a whole continues to execute on its goals and objectives, which has enabled the company to see improvements in all areas of the operation from customer experience, to brand-sponsored promotions, and technology advancement. Driven is now heavily investing in rapid growth and competitive separation," added Schenk.
Several other accomplishments were realized in May including the launch of updated e-commerce stores for both Budee and ganjarunner. The updates included expanded brand pages, shopping filters, improved user experience, including faster speeds, improved layouts, quicker registration, and checkout workflows. These adjustments led to significant improvements in web traffic conversions for both new and returning site visitors which contributed to the growth of online sales. The Company also added new features within its Driven by Numbers (DBN) platform including increased geo-intelligence which includes census data, as well as other third party attributes which have contributed to increased segmentation for retention programs and campaigns. These improvements led to increased daily conversions for retention campaigns, which now reach an average of 2.43% and contributed more than $1.4M in revenue for May alone.
About Driven:
Driven Deliveries, Inc., is a 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.
Disclaimer About Performance Metrics:
This press release contains unaudited financial performance information. Gross collections is a measure of total amounts collected from customers during the applicable period and has not been subject to an audit or reconciliation of taxes and other costs associated with business.
Forward-looking Statements:
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. The amounts set forth in this release have not been audited by the Company's auditors and are subject to change. 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.
Investor Contact:
KCSA Strategic Communications
Valter Pinto or Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203
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SOURCE Driven Deliveries, Inc.
