Google drive is a new cloud storage and combined with Google Docs. It allows users to upload nearly any file, rename files on the storage and offline view on your device. Its folders make it easy to organize all of your files, but I can't figure out how to create a folder in Google Drive app on my Nexus 7.
It is disappointing that you cannot create any folders within the Android App. However, it offers a way to create them using the PC web interface. On Nexus 7, you can open Chrome browser to access drive.google.com and change it to desktop mode.
When you login to your Google Drive, touch the red "Create" button at the top left, select Folder from the menu, type a folder name and tap on OK button. Then those folders willbe visible in the Android App. On the browser, you can also Delete a folder or move a folder within another from Google Drive website.