How to Start a Marijuana Delivery Service?

The marijuana industry has now transitioned from an illicit oneto a mainstream commercial powerhouse. And as the legalization of marijuana becomes more globally accepted, its use will only continue to rise. Combine this development with the convenience of an efficient marijuana delivery service and you have a sound business plan. 

Here is how to get your service up and running.

How to start a marijuana delivery service?

Step 1: Decide on a business model

First and foremost, you should know the type of marijuana delivery business that you want to start. You can outline your cannabis business model and plan based on the three main kinds of marijuana delivery services:

  • Online stores with a cannabis delivery app
  • Dispensaries with in-house delivery service
  • Courier companies that deliver for dispensaries

Although different kinds of services have varied needs, there are a few fundamentals to starting a marijuana delivery service, regardless of your niche. Given below is our guide on the same:

Step 2: Know the law

Every state where marijuana is legal has some regulations in place that restrict workflows. Adherence to these rules is imperative or you will risk huge fines—even a suspension of the business license. 

In the United States, for instance, cannabis is still illegal at the federal level. So, you must talk to legal professionals, compliance experts, and government officials that work in the industry of your state. 

Step 3: Select the right delivery model

You can take a pick from the common marijuana delivery service models, which are:

  • Ice-cream truck delivery: This model allows a driver to carry inventory in the vehicle and make multiple deliveries at a time.
  • Pizza-style delivery: It allows a driver to carry only one order at a time. Some states mandate the use of this delivery model.
  • Hybrid delivery: As the name suggests, this model mixes the aspects of ice-cream truck and pizza-style delivery models. You can follow this model in states where a certain quantity of product is allowed to be carried in vehicles.

Step 4: Define your boundaries

While it might be tempting to deliver as far and wide as possible, it is not always the best idea. In a bid to beat the competition, do not forget to consider the costs you will incur when travel distances increase, such as gas, insurance, and delivery staff. 

In case you cannot figure out the apt delivery distance, take note of the enterprises in your area, such as restaurants and cannabis dispensaries, and assess their delivery range. Doing so will also help you find an opportunity for differentiation. 

You can also offer marijuana delivery service to areas that are farther away but have a demand for quality products.

Step 5: Configure your inventory

Marijuana loses its freshness if it is not stored properly. Therefore, maintaining your inventory is crucial, whether in transit or at the dispensary. 

For instance, you can use glass jars or vacuum seal the flowers to create an air-locked environment. Moreover, keep the product at about 70°F as high temperatures can alter the pharmacological effects of the plant and low temperatures can result in microbial growth. 

Step 6: Leverage technology

For a marijuana delivery service to maximize profits and streamline workflow, it must have an efficient delivery process. However, business owners often fail to utilize tech effectively and end up spending considerable time on planning and managing delivery routes. 

An AI-powered cannabis delivery app can help your delivery teams streamline operations and complete more deliveries in a day It can help you-

  • Plan and optimize routes
  • Track and monitor routes in real time
  • Streamline customer communication
  • Get confirmation of successful deliveries
  • Plan maintenance schedules
  • Diversify delivery options

Start Your Marijuana Delivery Service With AllRide Apps!

Cannabis is still a relatively new industry, but it is quickly picking up pace. Estimates indicate that the marijuana industry in the United States could be making an annual revenue of up to $130 billion by the year 2024

So, if you are planning to set up a cannabis delivery service, get acquainted with the laws of your state, select a strategy that increases your marketability, chalk out the delivery radius, and securely store your inventory. 

Furthermore, you can rely on tech to improve the delivery process and boost business growth—while saving considerable time and money. And when your marijuana delivery service is all geared up, remember to spread the word by setting up a website and advertising via digital ads and local papers.

Steve Smith

Steve is the Director of Partnership at AllRide. He has been in the industry for more than 8 years and works with different transport and delivery businesses and understands their technical needs, analyzes business cases, and proposes the best technology solutions. He loves to meet new people and network with like-minded people.

Logistic Management Company