The Future of Delivery in California
Delivery is one of the most popular business models in the California cannabis market.
Delivery services operate as “mobile dispensaries” where consumers with a medical cannabis recommendation can have their meds delivered to their door. One of California’s most popular delivery services, Speed Weed, even offers overnight delivery throughout the state.
The convenience of delivery has made it a very popular option for patient-consumers. Delivery is an extremely valuable service and is absolutely essential for very ill patients who have difficulty making it to a dispensary storefront.
Believe it or not: Marijuana delivery services in California face extinction as early as 2019!
I don't mean to be alarmist, but this is a reality that California business owners and consumers need to be aware of. Neither MCRSA nor AUMA include a state license designation for delivery services.
The result: thousands of delivery services currently operating in a legal gray area do not have a clear “path” to legalization. Under California’s medical and recreational laws, the state can begin shutting down any unlicensed marijuana businesses beginning January 1, 2019.
Stepping Up to Protect Delivery
Los Angeles delivery businesses have organized the LA Delivery Alliance to advocate for themselves in state and local government. On March 7, they scored a great victory with the approval of Measure M, which will allow the city of LA to regulate the delivery businesses that were previously outlawed.
San Diego is home to over 125 currently operating delivery services, with many more who are not currently listed on sites like Yelp or WeedMaps. Thanks to organizations like Women Grow, San Diego delivery service operators are starting to wake up and recognize the importance of organizing a political alliance to represent their interests and make sure they’re not shut down in 2019.
At the state level, AB 64 would allow delivery services to obtain a dispensary license as a dispensary with a “non-storefront” location. But some delivery organizations want more. The California Cannabis Delivery Alliance is pushing for a stand-alone license type for delivery services, arguing that a unique license will provide greater clarity for regulators and the regulated community.
I'll be keeping a close eye on state and local developments affecting delivery services. Stay tuned!