Marijuana which is also commonly known as weed or cannabis has been used in numerous cultures across the world for centuries. Primarily, it was used for recreational, medicinal, or spiritual means. However, the use of cannabis has increased dramatically in recent years. Marijuana has now become immensely popular as many medical benefits of the herb are being discovered.
As far as the U.S. is concerned, many states have already legalized the use of cannabis for medicinal and recreational objectives. Additionally, more physical stores/dispensaries are coming up from where people can get their cannabis.
Now even after months since marijuana became legal, there are very few licensed stores/dispensaries that perform online delivery services for medical marijuana. Looking at the immense demand, if you are looking to get into the cannabis business through a weed delivery app, then you are in the right space. Idea Usher experts bring you a deep insight into weed delivery app development guides, market statistics, and potential business models for the online cannabis delivery business.
But before we dive into the technicalities, let’s try to figure out relevant economic insights from the available cannabis market data.
Let’s keep aside the benefits of marijuana and the potential market capitalization it can lead to. For a moment, let’s be completely practical and focus on data.
The core factor that is pushing the cannabis market expansion is the rising demand for legal cannabis in numerous countries. Additionally, medical marijuana utilization for different diseases is gaining popularity across the world. Multiple chronic illnesses like Parkinson’s, Alzheimer’s, Cancer and various other neurological disorders officially identify medical marijuana as an efficient solution. And that is why cannabis is in demand.
In order to serve this strong user base, cannabis retailers in the industry are moving online with their businesses to provide on-demand services to their customers. Consumers of this modern world want to shop everything according to their convenience, and online delivery models cater to their demands in the best way. Therefore, providing an efficient solution such as home delivery of marijuana will put you forward in the cannabis market.
Primarily, there exist 3 standard business models for on-demand cannabis delivery.
This is one of the simplest weed delivery business models. Let’s say if you already own a cannabis Store, you can always choose to create your cannabis delivery mobile app. By doing that, your sales and overall business can touch greater heights, avoiding all the offline competition with physical cannabis stores. Additionally, the orders will arrive at your platform directly, and you can prepare and deliver the order. Moreover, talking about the delivery network, you can choose to handle it yourself or hire some third party to manage the deliveries.
In a delivery-centric model, your main role will be that of a delivery associate to the cannabis sellers. Interestingly, even if you don’t have any knowledge or the resources to be the seller in the Marijuana business, you can easily be the delivery partner for cannabis dispensaries or various weed stores and serve with delivery services and logistics. As a return, you can charge a fixed percent commission on every delivered order.
The ideal business model which can help you generate maximum revenue is the Aggregator model, and we are going to dig deep inside this weed delivery app business framework.
An aggregator model simply directs to a strategy in which you’re looking to create a network shaped as an app that essentially features smooth ordering and delivery of weed and marijuana-related products. Now we have three main actors who have significant roles to play in the working of this business. Let’s try to figure out more about these three roles.
Undoubtedly, for any business, its consumer base acts as the driver of the business. In your case, these are essentially the people who are going to be your online cannabis customers, through your app. Now the users can be patients suffering from certain medical conditions, or they can be normal consumers looking for your offerings for recreational objectives.
Now as you know these people form your user base, hence they’ll be the priority in your business plan.
All you need to do is build a dedicated weed delivery app to start and run your business for serving on-demand cannabis delivery.
These are the cannabis sellers/providers who serve in dedicated areas, have their own dispensaries, and will appear on the app. Additionally, the vertical includes dispensaries that necessarily do not have their own delivery system. As a result, the corresponding dispensary businesses want to jump into the on-demand user base. The app will allow the dispensaries to upload their inventory online. Further, the end-users can browse among various Marijuana product categories and products and enjoy the convenience of getting them delivered at home..
Efficient delivery management is necessary for your weed delivery app business. It essentially involves the order delivery drivers and the technology supporting the entire process.
Now, keeping aside these three actors, there is you, the Admin of the weed delivery app. Your role will involve monitoring and handling entire operations happening throughout your business.
You will be offering a lot of things through your cannabis delivery app. Here is a curated list of the most important offerings that an ideal weed delivery app should plan
Business owners can charge commission fees from the cannabis dispensaries/sellers on the basis of successful orders by app users. On the customer side, delivery charges can be charged based on the delivery location mentioned in the order.
Advertisements are popular among businesses, and it is undoubtedly a tested strategy to boost revenue directly. Business platforms like a weed delivery app can charge dispensary brands for advertising depending upon the content volume and duration.
We all have heard of membership plans in e-commerce platforms like Amazon. These plans are aimed at serving users with premium offers and advantages. Additionally, members can also get early access to special sales, no delivery charge, freebies on every order, and other useful incentives.
Prior to starting up an on-demand weed delivery app, one should first check out if the target market that you’re aiming at allows for cannabis trade or not. Undoubtedly, the future seems very bright for legalized cannabis supply. But currently, there are quite a few restrictions on the herb. To avoid landing in trouble of any scale, you should always take care of the legal parameters of the weed delivery business before starting operations. Overall, you should first focus on getting the permissions and official documents from the government.
Along with that, you should also figure out the demand in the market in which you’re setting up shop. You don’t want to be swatting flies online!
Now, there exist multiple options when it is to on-demand cannabis delivery. You can choose among delivery specific, aggregator model, or single store model. Additionally, you can customize your own revenue model as well!
Well, the cost of developing a weed delivery app can be huge to manage it on your own. However, you can always reach out to interested investors. Once the app prototype is complete, you can easily reach out to Angel investors to fund your venture. Moreover, you need to pitch your business plan in the best way possible to gain investments.
It is quite a lengthy process as there are a lot of things to take care of while you develop your mobile app.
After the app is ready, and the operations are up running, you can put emphasis on managing the app. Utilize various statistical tools, so that you can find ways to enhance app performance and implement those updates in the future.
One of the essential aspects to zero on when you’re handling such a project is efficiency. Starting from the ordering process to delivery, each pillar of your system should run smoothly. Whether it is flawless GPS Tracking to live notifications, and quick payments, and refunds, nothing should be problematic or clunky.
Estimating the cost of such a multidimensional app is not easy as there are so many aspects, and each idea adds or subtracts a bit or more from the standard calculation equation.
The cost of your app development relies on your development team, your market, the features you’ll be including in your app, the platforms for which you’ll be developing the app, and other similar aspects. You can talk to our development team to get a closer estimate of developing your app.
Idea Usher helps businesses with customized software solutions specifically as per needs and requirements. After 15 years of combined market dominance, we now possess expertise in weed delivery app development too. Ultimately, even if you’re a start-up or an established company, we have solutions to all your technological requirements. Additionally, we proudly carry a proven track record of reaching one million downloads for most of the apps we develop. Contact us to know more!
Recently, many countries adopted various measures to end the ban on the selling and consumption of medical marijuana. These latest reforms put together with the recent boost in e-commerce are overall a fantastic opportunity for cannabis business enthusiasts. Therefore, entrepreneurs looking to build on this opportunity should not wait anymore.
Note: the following factors should be considered too:
There’s a lot that goes into the development of a successful on-demand cannabis delivery business. However, the right professionals will do the heavy work for you. Idea Usher has experienced app developers and is always up for technological challenges to assist you in the best way possible. Contact us today for a quote.
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