Post-Pandemic Cannabis: Are Amazon, Uber And Other Mainstream Delivery Services The Future?

By The Fresh Toast's David Hodes, provided exclusively to Benzinga Cannabis.

There are hints that cannabis delivery using mainstream widespread delivery services could happen someday in the same way that alcohol is delivered.

It’s hard to say where we are in the COVID-19 pandemic right now, as infections and deaths continue to rise. But there have been movements in the cannabis industry that are changing the way the industry operates amid the pandemic that may stay post-pandemic.

Being allowed to operate as an “essential” business — which had a few bumps in the road between including both medical with recreational as essential businesses in states such as Colorado (that state quickly changed and added rec) and Massa`chusetts — was one positive result that gave the industry some needed comeuppance and respect.

Sales have been strong, and delivery options were expanded as well.

Many states with legal medical and recreational cannabis have been allowing deliveries since they legalized. But because of COVID-19, dispensaries are now adjusting to curbside or drive-thru window sales to adapt to the new contactless, social distancing way of conducting business. 

California licenses over 150 legal cannabis delivery companies, the most of any state, including Eaze (now scaling back operations),  Puffy, CaliExpress and more. The scaling back of Eaze may be just a delivery service experiencing hard times during the pandemic, or it may represent a harbinger of things to come, leaving the door open for more of these adapted dispensary-centered curbside/drive-thru sales.

In some states, dispensaries are operating under temporary rule changes about how to purchase cannabis product that consumers hope will stay after the pandemic passes.

Those temporary rule changes include Oregon, where the state’s regulators underline that this will not become a permanent rule; that if any one bad player creates a problem the rule will be suspended for all dispensaries; that medical cannabis consumers or caregivers can buy up to 32 oz. of flower instead of the 24 oz. previously allowed by law; and further advises delivering product to a person in the parking lot of the store, a person at the front entrance of the store, or a person at a walk-up or drive-thru window of the store.

RELATED: Japanese Company Says It Can Make CBD Out Of Orange Peels

In Washington state, curbside delivery is also allowed in an area as close to the dispensary as possible. But the state does not allow a drive thru window.

What about Amazon, and Uber Eats, and other mainstream delivery services like FedEx, which was and is still the old school way of delivering cannabis?

Are Amazon, Uber, Etc. The Future Of Post-Pandemic Cannabis?

Photo by Kai Pilger via Unsplash

Amazon has been caught up in some llegal deliveries, demonstrating people are already using the service illegally, and the company currently delivers hundreds of hemp products — hemp oil, hemp prerolls, hemp flower — along with almost anything else needed to operate a legal cannabis business (except the cannabis) which may be testing some state’s laws.

So it seems like it could be a quick transition for Amazon to deliver cannabis, if and when that happens.

RELATED: Can Cannabis Inhalers Provide Effective Treatment For Chronic Pain?

The reality is that chances are still slim for those mainstream delivery services to deliver either medical or recreational cannabis as long as federal prohibition continues. A mainstream delivery company would be opening a can of worms and courting business disaster if it began delivering a substance still listed as a U.S. Drug Enforcement Administration Schedule 1 worst-drug-on-the-plant.

Ah, we can dream, right? Well, all is not lost.

There are hints that cannabis delivery using mainstream widespread delivery services could still happen someday in the same way that alcohol is delivered. Drizly, an e-commerce alcohol delivery service, promises delivery of under one hour to customers in places like Arlington, Virginia and about half the other states in the country. Virginia has some of the country’s toughest liquor laws, but in Virginia, there are regulations and a precedence set about delivering intoxicating, heavily regulated substances.

Time will tell. This year has seen much turbulence, and much change on both a business and societal level. That Amazon box on your porch may someday have a special green Amazon logo, representing something different and revolutionary inside. Puff-puff-pass.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisNewsMarkets
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.