There is going to be an Uber Eats, but cannabis style, in Canada.
You may have heard of Eaze – the company that offers on-demand delivery of cannabis products in California and Oregon. They are expected to sell roughly $412 million worth of pot in 2020 and has grown into one of the largest distribution platforms in the states where they operate.
Another example is Trulieve – a vertically integrated U.S. licensed producer that grows cannabis AND delivers product directly to patients at their home. They dominate in Florida, operating 38 dispensaries throughout the state, and they have captured nearly 50 per cent of total sales in this market.
These are big numbers – any opportunity to make buying cannabis more convenient for consumers is music to the ears of anyone involved in the legal sale of weed. And it looks like Canada is getting in on this action.
There is a test program launching in Winnipeg – It’s called Super Anytime (the sister company to Boozer – they deliver alcohol directly to your door) and it enables same day cannabis delivery, connecting a local cannabis retail store with the customer via the Super Anytime app and/or website. A separate company called Pineapple Express will do the actual delivering once orders have been placed and verified. More liberal laws have helped private retailers in both Manitoba and Saskatchewan, as they have opened the door to home delivery. This is one important way for new players to compete with the legacy black market.
If and when home delivery becomes legal in more jurisdictions, the next hurdle is how to market this type of service. Current regulations in Canada require the target consumer of any cannabis marketing to be of legal age, so the low-hanging opportunities are customers who already buy from legal retail dispensaries who may choose to have their next purchase delivered to their home. Mobile apps like the ones offered by Eaze and Super Anytime can’t be marketed through mass media in Canada, but don’t underestimate the power of word-of-mouth marketing.
Used to ordering almost anything directly to their homes, savvy cannabis consumers will find these cost-effective and convenient ways to get legal cannabis through blogs, forums, and personal social media. Removing barriers to the commerce of cannabis is a natural next step – hopefully the regulators see the light.