New changes to California cannabis regulations will dramatically impact marijuana delivery services. According to Forbes, the California Bureau of Cannabis Control has released a detailed set of regulations for the operation of cannabis businesses in preparation for the issuance of business licenses for the sale of recreational marijuana in January 2018. Amongst thousands of other regulations, these provisions prohibit many methods of marijuana delivery, including: aerial drones, autonomous land-based robots, aircraft, watercraft, rail, and unmanned vehicles. The regulations specify that delivery may only be made in person by enclosed motor vehicle. This ban raises larger issues of marijuana delivery restrictions within California. As the innovative tech culture of Silicon Valley improves and expands drones and other autonomous delivery services, it is likely that the rule will be adapted. As the rules change and adapt to new technologies, how can cannabis business owners stay in compliance and maintain profitable operations?
How Delivery Services Are Adapting Their Business Models
Marijuana delivery services in California have taken many creative approaches to the question of how to develop a business strategy around delivery restrictions and regulations. TechCrunch reports that Eaze – a marijuana delivery service – has recently raised $27 million in Series B financing after spending $24.5 million in venture capital. This large influx of cash is supporting an aggressive growth strategy. When questioned about the wisdom of spending $1 million per month in cash, CEO Jim Patterson responded that the company is investing in growth before the imminent legalization of sales of recreational marijuana. Patterson also dismissed concerns over large delivery logistics companies, such as Amazon, getting into the marijuana delivery market, citing the complications of marijuana regulations at the federal level. Continue reading