The demand for Marijuana has always been pretty high. Several awareness programs, protests, and movements later, the community has come a long way in making marijuana a normalized topic and not taboo. As time passed, many states legalized cannabis and permitted using the plant for medicinal and recreational activities. And here we are today, discussing how to open a marijuana delivery service. Revenue of these apps are tremendous too. In 2020 alone, Eaze made $176 million. Your business can be next, and we’ll show you how. Keep reading till the end to find out.
The pandemic did a lot of damage to our lifestyles and restricted our mobility. However, this situation also paved the way for you to start a cannabis delivery service. Statistically, the need for online delivery services has skyrocketed since people began to quarantine themselves. Simultaneously, people have also stocked up on various things they need, and marijuana is no different. There are many marijuana apps like Leafly. But marijuana delivery services are relatively new.
It is also important to have a fair idea about what a marijuana delivery service app is and how to start one. So today, let’s talk about that!
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The thought of starting a marijuana delivery service is as adventurous and appealing as it is risky or controversial. The initial idea must have felt weird or extravagant to you as well. However, if we look at this technically, then the marijuana industry is perhaps one of the most potent industries to invest in, in this time and age.
According to the WallStreet’s Cannabis Analyst, the marijuana industry in America was worth $16 billion in 2019. The prediction is that by 2030, the industry will be worth $30 billion. And this is just in the US. The business is thriving and beneficial. However, it is also understandable that one has doubts and stigmas to overcome.
So, let’s get through this, one answer at a time.
To explain very blatantly, marijuana delivery services are services that involve the distribution of marijuana to users. The delivery services can come in different categories, such as by mail or hand delivery. However, what is familiar to them all is they are the final service point in the whole process.
Here, it is essential to remember that no delivery service is usually involved in growing or cultivating marijuana. They simply take the orders from the suppliers and convey them to the customers. However, no matter how straightforward that sounds, it still has various laws and regulations attached to it. Mostly because of the stigma associated with cannabis.
Approximately 17 states in the US have completely legalized the consumption of marijuana. However, some of these states have legalized weed as a medicine and not primarily for recreation. On the other hand, 27 states have somewhat legalized weed but have loopholes to them. Lastly, eight states have not yet legalized weed, and it is a criminal offense to smoke there.
So the states where the consumption is entirely or partially legal is where a marijuana delivery service can thrive.
The reasons why a marijuana delivery service is necessary are endless. However, here are a few significant points, for whenever anyone wants to argue otherwise.
Perhaps the only two cons of the venture are the initial trouble of legalizing the business and the primary lumpsum investment that needs to be made. Otherwise, a marijuana delivery service is a safe and sustainable business venture.
As mentioned earlier, the marijuana industry is still in its infancy and, therefore, comes with many controversies. Consequently, a lot of legal loopholes come with the package too. Therefore, to ensure damage control, certain features play a detrimental role in making your marijuana delivery app a success.
These few features play a massive role in making a marijuana delivery service successful.
What we are doing today is talking about a game that already has a few masters. So, how did the top marijuana delivery services start? How are they now at the top? Let us get back to the basics to know!
WeedMaps started back in 2008 when Justin Hartfield, the man behind this glorious app, recognized the need for a weed delivery service. Hartfield himself was a medical user of weed and couldn’t find a good dispensary when he looked online. Hartfield realized the need of the customers and decided to do something about it.
He approached dispensaries and offered to give them free space to list themselves. Then, the online service gradually gained momentum as more people started to visit and use the service. This was when Hartfield decided to monetize the service, and in 2010, the website started charging for listings.
Many other similar businesses replicated the business model made by Hartfield. However, WeedMaps had the advantage of being the oldest and one of the first businesses in this field. However, issues like redundant comments and feedbacks always stand as an issue, even to this day. WeedMaps is still one of the leading apps for marijuana delivery services.
Eaze was founded back in 2014 by Keith McCartey to deliver cannabis to patients. Thus, in a small apartment, with four employees, a revolutionary marijuana delivery service was made that contributed to transforming the marijuana scene in many states of the US.
Eaze runs primarily as an app that allows users to order marijuana from a dispensary of their choice. The app enables the users to connect with dispensaries closest to them and acts as a mediator between the two. However, the company does not grow or sell marijuana themselves. The app also allows dispensaries to sell edibles, and other Cannabis-infused goodies, apart from the usual herb itself.
Eaze became such a successful company that it was nicknamed the “Uber of Weed,” As of 2019, the company was worth $176 million. Undoubtedly, the app was built with a masterplan, reflecting through the tremendous amount of success and love it has received since its birth.
Bud is an up-and-coming marijuana delivery service that has already made a significant mark in the marijuana industry. Even a couple of years back, the name Bud didn’t pop up in any conversation about marijuana delivery service. Yet now, Bud is a common name and comes highly recommended by the users as well.
Bud starts by asking for your location first. With the zip code available, the service allows the user to choose from a vast range of edibles, gummies, candies, pre-rolled joints, regular weed, vape pens, and a lot of other goodies pertaining to marijuana. The service delivers all these at the user’s doorstep as ordered.
The best part about Bud is the products they sell are quality checked, so at no point is the quality control tampered with. Bud is a new company, and in due time, a good change and series of developments are expected from the company!
Dutchie was launched back in 2017 and had barely three dispensaries at their perusal when they received their first order. Dutchie’s purpose is to create a platform that will give easy access to marijuana for everyone. They realize this mission with the help of top-notch technology and software tools to create a marketplace where users can connect with dispensaries.
The factors that make Dutchie the best are that it is safe, all the dispensaries are legally licensed, and they provide the best quality of weed. The convenience of being able to order from one’s couch is undoubtedly one of the best features. And lastly, since the whole system was custom-made for weed delivery, the tax calculation, discount, pricing are all inbuilt with accurate understanding.
Dutchie saw good progress in the few years it has existed. From an apartment and four employees who had three dispensaries to work with. Dutchie now has more than 2000 dispensaries worldwide, 36 active markets, and 178 employees. It is safe to say that Dutchie is a leading name in the North American marijuana delivery service scene.
Lyt is a Marijuana delivery service that runs in and around Los Angeles, California. Although it is not what one would call a mammoth company, it is still one of the best software to take as an example for a good marijuana delivery service. First things first, the look and design of the web page are simple and straightforward. Thus, it is not difficult to locate whatever the user needs.
Secondly, the marijuana delivery service provides the users with top-notch customer support. Several FAQs and customer care features such as email and call enable the users to seek support at any phase of ordering. The website also has a lot of blogs to inform and educate the users. In addition to all these features, Lyt also gives the users a lot of discounts and offers to use.
The range of cannabis products offered by Lyt is vast, so there is something or the other for every user. Be it different strains, different modes of consumption, or additional accessories. However, Out is operating only in California presently, but soon enough, we can expect a piece of news about Lyt expanding.
If we had to use one word to describe Nugg, it will be wholesome. Now, wholesome is generally not a word that describes a marijuana delivery service, but with Nugg’s vision and mission, this is the only way to go. Nugg intends to become the world’s most trustworthy marijuana delivery service that primarily focuses on the customer’s needs first!
Nugg is a company that intends to support the local and organic dispensaries instead of big corporations. Nugg believes that sufficient education and science should back up the growth of the marijuana industry. Nugg further expresses the concerns it has regarding the history of cannabis in America. Therefore, it is necessary that every citizen can have access to cannabis in the ongoing revolution of Cannabis consumption.
In 2013, in a fraternity house in the University of Southern California began Nugg, and they haven’t looked back ever since. Their whole story is up on the official website of Nugg, and reading it is nothing short of an emotional and inspirational joyride. Indeed, Nugg has a bright future ahead of them, and we are here for it!
The most significant pioneers of marijuana delivery service started tiny, and if we are honest here, they started with a lot fewer resources. With a better understanding of the situation and resources, one can use, creating a successful marijuana delivery service is not just ideal; it is also smart. So, let us take a look at how to start a marijuana delivery service!
Deciding on a location before even planning the marijuana delivery service is crucial. Given that different states have different laws for marijuana. Some allow the usage of marijuana only for medicinal purposes, and then some states permit marijuana uses for medical and recreational reasons. Marijuana is not legal at the federal level; however, different forms have rules that must be followed.
Another factor that contributes to the need to decide on a location is the demography of the site. What is the age division of the area, if the population of that location is users of marijuana, and if the location is a safe place to practice the service or not? These factors play a determining role in the inception of your marijuana delivery service.
Once the location is decided, the planning to start a marijuana delivery service can begin. Here, one needs to do thorough research regarding the laws to receive the licensing and permits easily. Good study on the target audience, the market, and the dispensaries available needs to be done to understand better the kind of business model that will suit the company best.
Many other aspects demand attention from the founder, such as the modes of delivery that can be used, the discounts or offers that can help the business and the users. The kind of software that is important and convenient. All these factors must be considered, and communication with individuals must be established to understand the situation better.
This is perhaps the most essential part of starting a marijuana delivery service. However tedious and tiresome the process might be, without a legal permit, the whole business can become null and void; not just that, the owner might even face charges for illegal trade. Even if your intentions are directed towards something good-willed, not taking proper precautions can jeopardize everything. Therefore, it is imperative to do sufficient homework and know all the requirements.
One can contact a lawyer to assist with these issues as well. Legal help can do wonders for the user as they might not figure out these loopholes all by themselves. With a professional’s assistance, learn about the current laws and regulations, then take actions as necessary. This way, the steps taken will be well measured and will also ensure damage control.
Marijuana delivery service sounds like a straightforward business, but it has different business models as well, and these models suit various situations in their ways. Therefore, before starting a business model, it is essential that the owner has a fair idea and understanding of the different business models and which will suit their needs the best.
This is a useful model for owners who grow and supply.
Their marijuana. The business model enables the owners to attach a delivery service to their pre-existing distribution network and helps them expand their business. Building a website to allow users to order from your store directly and then deliver the same to them is an appealing idea to execute.
Through the online medium, your business will be able to gain customers who could not previously access your shop due to distance or other logistical issues. Your inventory can be tracked as well. Lastly, the fact that you have a physical storefront will allow you to gain your customers’ trust even more.
Online Marijuana Start-up and Delivery Service
This one is for those who want to start up a store along with the delivery service. Having an online marijuana store usually takes less toll on the pocket and enables the owner to save up on store maintenance and extra employees.
One just has to get licensed and then stock up on marijuana. As and when one receives an order, they have to get it delivered and paid. That is the simplest way to put it. One can also sell gummies and other edibles or accessories for weed. This will expand the options available for the users and consequently boost the user base. In some time, as the business gets more traction, one can go ahead and monetize the website.
This is the most beneficial and sought-after business model, and it is also simultaneously a long shot. Here, four main categories play significant roles: the sellers, the buyers, the carriers, and the admin panel. The sellers are the dispensaries that use the service to list themselves and get themselves known to the users. The buyers are the customers that browse through the listings and choose which dispensary or weed suits them. The carriers are the people appointed to get the deliveries done.
Think about food delivery services like Post Mates, now replace the food with weed. That’s your marketplace. However, these marketplaces also have a few drawbacks. The security risks are significantly higher as the license of buyers and sellers needs to be checked continuously. The fraudulent activities that can potentially creep up in certain situations need to be kept in check.
However, being the administrator of the whole situation, if one has a clear understanding of what they are doing, it will not be that difficult to execute, no matter how overwhelming it initially sounds.
After the basic idea about the business model is established, now is the time to get hold of a great team consisting of designers, engineers, a marketing manager, and a project manager. More people can be a part of the group, but how many people are needed to create a successful mobile app is a conversation for a different day.
This team will help the owner realize their dream and provide more suggestions to better the program in the making. These people must have a good idea regarding the project they are dealing with. People must communicate with each other to always be on the same page and create good software for the marijuana delivery service.
Once the prototype is made, it needs to be tested with a small target audience batch. This target will be based on the business model that the company has opted for—ranging from buyers, sellers, drivers, as per the business model. Everyone’s feedback is to be recorded, and accordingly, changes are to be made if necessary.
Here, it is essential to observe how the users of the service are reacting to the service. Accordingly, the developers can also follow the changes that need to be made, even if that skips the user’s eye. After this trial and error procedure, a complete service will be developed to be beneficial to every user.
The cannabis industry is thriving, and the opportunities to benefit from the industry at this point are endless. The marijuana industry is still in its infancy; with the gradual legalization of the herb, the market will only expand tremendously. Marijuana delivery service is always a new and innovative approach to start off in the marijuana industry as it does not have the hassle of growing or selling the product.
However, since it is still a new prospect, it can easily be misconstrued, and as a result, the service might not take off well; that is why you need a good web development company to help you through the process. At Idea Usher, we have a fair idea of building a good website, and with the help of an excellently skilled team, we can get the best possible results for you. So if you are looking to start a marijuana delivery service, you know where to find us!
How much does it cost to start a marijuana delivery service?
This depends heavily on the location, the team, and the business model. The industry may be quite different, but the application building procedure is not drastically contradictory. The only additional payment that needs to be made is that of the legal licensing, permits, and paying the lawyers.
How to decide which business model suits my company best?
Again, this depends on a lot of factors. Say you want to build a delivery service where there aren’t many dispensaries, you can then start a dispensary of your own online and the delivery service. If you don’t want to take any other dispensary responsibility and only want to grow your business, then the single dispensary delivery service is for you.
Lastly, if you don’t want to go through the trouble of growing and distributing your product but seeing an opportunity for a marijuana delivery service to shine, you start a marketplace. The choices are straightforward. It entirely depends on the company, its understanding of the opportunities, and the benefits.
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