California is being looked at as an epicenter for delivery and e-commerce, in regards to marijuana sales. The company Eaze has developed software facilitating medical cannabis deliveries through connecting patients to the dispensaries selling the product.
San Francisco has a startup of their own that sits among other tech companies and marijuana industry insiders. The startup made $27 million in investment capital. These types of companies are predicting that dispensaries will begin disappearing once California starts legal recreational sales. Sheena Shiravi, head of Eaze’s public relations, commented how “It’s not unique to cannabis. I think that (e-commerce) is the wave of the future.”
Senate Bill 94 was designed to unify existing medical marijuana regulations with those for recreational sales. Hezekiah Allen, executive director of the California Growers Association, stated it opens many doors for virtual operations. The cannabis retailer would have a discreet licensed and regulated facility that allows for deliveries.
The expansion is expected with California’s extremely growing cannabis market. New Frontier conducted a study that forecasted the legal sales would start at about $2.8 billion, then climbing to $6.6 billion by 2025. New Frontiers, executive vice president of industry analytics, John Kagia, provided a statement explaining: “Beyond California’s sizable population and economic power, the state’s prowess in areas such as technology, media, and cannabis cultivation will be accelerants to the modernization, the increased sophistication and the maturation of the industry.”
Due to loose regulations on the market, legality for on-demand delivery has been inconsistent. San Francisco allows delivery, but Los Angeles does not. The CGA estimates 7,500 cannabis delivery companies are conducting more than 55 percent of medical transactions. California’s Bureau of Cannabis Control and L.A. Department of Cannabis Regulation are attempting to draft regulations.
Delivery is an option that allows for an increase in consumer access while protecting the concerns of cities and counties about storefronts being a risk for higher crime rates. Eaze has its operations near the Bay Area where delivery is legal and are also in a position where areas nearby could potentially adopt or consider cannabis delivery. Oregon is among the states permitting legalized delivery, including Nevada. Colorado attempted to offer a proposal, but Gov. John Hickenlooper worried about raising the attention of federal agencies. Eaze is still optimistic about the future and believes California is the perfect spot to gain federal regulation.