The boom in marijuana business across the country, as the herb continues to be legalized, has been referred to as the “green rush”, with many options for entrepreneurs to make a fortune in the industry. Dozens of big companies have entered the industry and the tech people in Silicon Valley have taken notice. Lots of tech companies have decided to participate in the industry, building new software and services for dispensaries and consumers. California based tech company, Eaze, is no different, throwing everything they’ve got into building a weed delivery service that connects consumers with the appropriate weed product and the dispensary from where it can be found and then organizing for a delivery to take place.
The California Growers Association Takes Action
Although not every county across California allows for home delivery, San Francisco and many other areas do. In fact, the California Growers Association (CGA) estimate that there are over 7,500 marijuana delivery services across the state. They estimate that approximately 55 percent of medical marijuana sales involve a delivery service. They currently have a focus on expanding that and lifting the ban on deliveries across the state. Los Angeles is one of those places that has outlawed marijuana delivery services but the CGA has placed changing this as a high priority. According to The Cannabist, the group is working with government officials, law enforcement and community leaders to change this situation; especially now that recreational marijuana is on the precipice of becoming legal in California in 2018.
Eaze Positioning to Lead Cannabis Delivery Services
Eaze representatives have worked hard to be at the forefront of marijuana delivery for the state of California, planning to get ahead of any crowds and be bigger than their competitors. Eaze CEO Jim Patterson stated, “With the legalization of adult use marijuana on the horizon, we look forward to using our data, technology and platform to continue to serve our mission of providing safe, secure access to marijuana products at the lowest prices with the utmost convenience.”
Large Investments in Marijuana Delivery
In an effort to be at the top of the game, Eaze recently raised $27 million in Series B financing. The company has already spent $24 million in previously raised money, spending approximately $1 million a month in aggressive marketing tactics and generally working to grow the company. The company has already claimed that it has seen a 300 percent profit increase every year and they are expecting this to continue. “We are a tech startup…we’re investing in growth,” Patterson told TechCrunch when asked about the money they have spent so far. “We’re investing the money now in what’s clearly going to be a very big market.”
There are currently 29 states (and Washington D.C.) that have legalized medical marijuana. 8 states, including California, have legalized recreational use for adults over the age of 21. Yet marijuana still remains, for now at least, illegal on a federal level. For this reason, Eaze believes they have a couple of years to build themselves up in the market before it does become legal and bigger name companies like Amazon have the chance to move in. For now, Eaze is experiencing growth and there’s no reason to believe that this won’t continue into the future.