Cannabis delivery has boomed during the pandemic and shows no signs of slowing down. According to a recent report, 60% of U.S. cannabis transactions were delivered in 2021, up from 50% in 2020.
Delivery provides an extra layer of convenience that many have grown accustomed to using frequently in categories like food and grocery, whether for DoorDash DASH, UberEats UBER, or ordering from their favorite pizza joint.
As cannabis delivery regulations continue to evolve and U.S. states increasingly embrace legal cannabis delivery options for medical and recreational use, dispensaries are increasingly realizing the need for more effective delivery solutions that streamline their operations to meet this growing consumer demand.
What Happened
On Wednesday, Dutchie will announce the launch of new delivery solutions as a part of its LeafLogix point-of-sale offering to provide dispensaries with a streamlined experience, Benzinga has learned exclusively.
The new bulk delivery solutions allow delivery operators to package multiple deliveries into routes and process multiple orders at a time, minimizing the numerous steps currently needed for compliance and cutting costs for dispensaries. Previously, most cannabis delivery operators only had the capacity to process and deliver orders one at a time.
“Delivery is now essential for dispensaries and Dutchie is stepping up to help our customers provide safe and easy access. Consumers expect a modern shopping experience, and our technology will reduce operational headaches and costs while driving more revenue and customer satisfaction,” Dutchie co-founder and chief product officer Zach Lipson told Benzinga.
Why It Matters
Cannabis delivery can be complicated and expensive for dispensaries. But Dutchie is hoping to help solve this issue.
A single delivery typically requires four separate systems: an online menu (ecommerce), POS, the state traceability platform and a “last mile” delivery system. Typically, these systems are not well integrated, ultimately complicating workflows and creating higher delivery costs.
But, according to Dutchie, the advanced integrations and new features of its platform will improve this. While some retailers have been reluctant to introduce delivery for their customers, Dutchie’s data suggests that it can be worth it: dispensaries who introduced delivery with LeafLogix saw higher order values of up to 29% and 37% increases in total transactions.
“Many dispensaries have been forced to pause on offering delivery due to the economic challenges caused by compliance requirements. With these new features, we’re solving critical pain points that will help dispensaries reduce overhead and run more efficient cost-effective delivery services,” Lipson added.
What’s Next
Owning two critical systems in this journey – LeafLogix POS and ecommerce – puts Dutchie in a strong position to add more value to dispensaries by enabling delivery features that are integrated, which helps dispensaries save on operational costs, remain compliant across varied state regulations and grow dispensaries’ revenue and reach.
Dutchie’s new delivery solutions enhance dispensaries’ – and therefore customers’ – experience by:
- Allowing operators to batch orders, assigning multiple orders to a driver and planning routes accordingly, saving time and delivering orders faster
- Introducing advanced two-way integrations with “last mile” provider OnFleet and with state reporting systems, helping to reduce data entry
- Making quality control and compliance easier with return-to-store checklists
- Providing more data and insights for operators to continuously improve delivery for their customers
More To Come?
Dutchie also hinted at some more plans exclusively with Benzinga, including the upcoming launch of a “dynamic delivery” solution in the first half of next year, which will enable an “ice cream truck” model for cannabis deliveries.
This model allows cannabis drivers to carry unordered inventory and to receive new orders from customers in their area. Dispensary customers will be able to browse the menu for the closest vehicle, ordering from what’s in stock. The dynamic delivery model isn’t allowed in every market just yet, but Dutchie expects this solution to make a major impact for retailers in markets like California and Michigan.
Más contenido sobre cannabis en Español en El Planteo.
Photo via Dutchie.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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