Legalized cannabis delivery has recently hit an all-time high and shows no signs of slowing down. Keeping up with demand, staying well-staffed with reliable drivers, and adapting to the ever-changing legislation landscape in each state appear to be the biggest obstacles facing these delivery companies.
Prior to the pandemic, cannabis delivery services were not common and only offered in the following four states: California, Oregon, Nevada, and Michigan.
When the pandemic hit and the country began to shut down, the demand for reliable, contactless delivery services surged across all industries, and that included cannabis. Currently, California, Nevada, and Oregon will deliver to consumers of age that are 21 and over.
In addition to the states mentioned above, the following states also allow for the delivery of medical cannabis:
- New Mexico
- New York
- Rhode Island
Alaska and Washington state also allow for delivery; however, the laws in these states have some gray areas. For example, transactions in Alaska are called “gift exchanges”.
Cannabis Delivery Companies
Cannabis delivery has a history of heated debate between lawmakers expressing fear over the effect that cannabis delivery would have on communities they service. However, many state lawmakers have learned during the pandemic that cannabis legalization is among the least of their problems. If anything, it has proven to be a significant factor driving economic growth during an otherwise bleak period of recession.
The selection and availability of cannabis delivery services depends on where you live. In California, Snoop Dogg’s Eaze is one of the most recognized delivery services in the market. Currently, Eaze only delivers in California but will ship to 44 states. Lantern is another delivery service and is backed by Drizly, an alcohol delivery platform that services Massachusetts and Michigan. Uber is set to acquire Drizly sometime this year which will significantly expand its distribution channels. In Oregon, Kush Cart is a small delivery service that saw massive growth during the pandemic and was able to offer benefits to their employees. Michigan saw an explosion of delivery services during the pandemic when the governor signed an executive order that allowed all licensed dispensaries to deliver.
Many dispensaries are expanding to offer the delivery services to their consumers as well, which is creating stiff competition. Delivery and curbside pickup provide dispensaries with a competitive advantage and will often be the deciding factor for a consumer choosing between where to place their order.
Grow Your Company by Offering Cannabis Delivery
Providing delivery service can be vital to staying competitive, and a working capital loan through Bespoke Financial can help you meet your expansion needs.
Bespoke offers revolving lines of credit to provide clients with immediate cash flow and give them the financial flexibility to capitalize on new business opportunities and scale for success. Borrowers can use inventory financing to purchase inventory goods in bulk to cut costs and improve their margins. Bespoke’s general line of credit is another option that can be used to manage expenses like purchasing vehicles, making facility improvements, fulfilling tax obligations, hiring delivery drivers and more.