A Cincinnati startup is making moves to accelerate payments to its roster of contractors nationwide, and its CEO said the move will help the company retain and attract talent amid a major hiring crunch.
Over-the-Rhine-based Frayt Technologies, a shipping and tech startup that connects businesses with on-demand delivery services, said its new partnership with payments platform Branch means it can pay its network of 10,000-plus drivers same-day.
Frayt said demand for last-mile delivery has increased more than 250% the last couple of years. As companies like Instacart, DoorDash and Shipt compete for gig workers, supporting and retaining driver talent is key.
“Providing a faster, more seamless payments experience through Branch helps us attract the best independent drivers in an increasingly competitive market,” co-founder and CEO Luke Denny said in a release. “Building that loyalty is crucial for businesses that want to see accelerated growth in the years to come.”
The companies announced the news this week at Home Delivery World, a global two-day industry conference held in Philadelphia.
Through its partnership with Frayt, Branch will offer accelerated payments, fee-free financial services and cash flow management tools.
Branch provides a business debit card and digital wallet at no cost to the driver or Frayt.
That allows drivers to receive payments for deliveries at the end of each day — rather than waiting until the end of the week.
By accelerating payments, Branch increases cash flow for drivers and reduces the wait time for payments by more than 85%. Branch also offers cash-back rewards, fee-free checking and access to more than 55,000 free ATMs.
Same-day payments are becoming more commonplace at businesses like fast-food restaurants and retail stores. Branch, based in Minneapolis, has announced similar partnerships with restaurant software management provider Delaget and Tippy, a salon and spa digital tipping platform, among others.
“We’re proud to partner with Frayt to support a new wave of business owners with accelerated payments and ensure both customers and drivers receive incredible reliability and service,” Branch founder and CEO Atif Siddiqi said in the release.
Frayt, founded in 2018 and a Brandery and gBeta accelerator alum, has been one of the region’s most-watched startups, particularly since the start of the Covid-19 pandemic.
The company operates in the last mile-delivery space. Its drivers — typically small-freight and independent van owners with excess cargo space — pick up at a distribution center or retailer and deliver directly to the end consumer.
Using the company’s app, customers can enter their information and receive an instant quote. Frayt collects a transactional fee whenever a driver completes a delivery.
Its business boomed as consumers shifted to online purchases during Covid. Its 10,000-plus drivers now support 40 markets in North America. That’s 7,000 more drivers than the company reported in early 2020.
Frayt has raised $4 million in funding and has more than 20 employees.
