It’s been an exciting year for Colorado’s marijuana market. Cannabis sales in the state surpassed the $10 billion benchmark in May since adult-use marijuana was legalized. Many recreational dispensaries hope to further increase revenue by implementing deliveries that, until January, were limited to medical marijuana shopping.

But nearly a year Legal Recreational Delivery, we’ve seen a slow rollout of the program.

Specifically, due to complex processes and disjointed systems, pharmacies are either not using delivery workflows, or they are barely delivering enough deliveries to consider operations as a viable business decision. The people most affected by these inefficiencies are the people this legislation is designed to help; socially fair delivery carriers.

But why are there so many problems? We all know consumers crave e-commerce options. States like California and Michigan have seen an influx of delivery orders over the past year.Colorado estimated to be the third-largest marijuana market in the U.S.

Multiple issues appear to be delaying the state’s potential for delivery. From confusing local legal warnings to poor technology to high overhead — Colorado marijuana deliveries have faced an uphill battle from the start. To create a successful Colorado cannabis delivery system, first, we need to address and address these issues.

Colorado Delivery in a nutshell

This slow start is easier to understand by first recognizing what legislation the state has in place and what is actually required to provide delivery in a pharmacy.

First, each city must opt-in to the statewide program and develop its own regulations. Denver, for example, specifically allows retailers to use the “Postmates” workflow to complete deliveries.

This means that third-party carriers with approved city and state licenses must perform all deliveries for the retailer selling the product.

This is the opposite of the “Pizza Hut” delivery model, which allows retailers to hire their own drivers and complete deliveries in-house, as we’ve seen in Aurora and states like Michigan, Nevada, and California. However, Aurora is unique in that it allows “Postmates” and “Pizza Hut” delivery workflows.

Note: Denver and Aurora cannabis retailers must comply with these rules until 2024.

Social Equity Creates Opportunity; Getting Started Is Difficult

Cannabis shipping companies are dealing with insurmountable upfront costs.according to medical expense table, for state licensing only, the budget for a third-party carrier should be around $12,000. This includes state transport licenses, state delivery fees, and owner’s MED badge fee.

Things like insurance, vehicles, drivers, gas, and software to run fast add up. To help cover the cost, couriers charge hefty fees and charge retailers.

While the state is anticipating an influx of delivery orders, we’re not seeing consumers adopting this method of ordering. Buyers are simply not willing to spend $20 on delivery fees, and options may be few, as few retailers currently offer delivery in Colorado.

Pharmacy waiting for the storm

Although pharmacies like eagle and Strawberry Fields Denver There are delivery programs that few other Colorado dispensaries do, even if they are legal. This may be because there isn’t much of a competitive advantage in offering delivery right now.

But that is changing rapidly.

Eaze, a large marijuana delivery marketplace, has acquired Green Dragon dispensaries, putting Colorado dispensaries on the fringes.

In order to remain competitive, delivery will become a must for Colorado dispensaries in the near future.

How to Fix Colorado Delivery Mode

For Colorado’s delivery model to be as successful as California or Michigan, it needs to do the following.

First, established businesses or businesses with expertise in the cannabis industry must support new socially equitable businesses that are up and running.

This can be done through mentoring, funding, networking, donated software, etc.industry associations such as Cannabis Industry Group (MIG) offers sponsored programs and panel sessions to educate people into the cannabis field.

The next hurdle is funding. It’s nearly impossible to start a business without money, but the harsh reality is that many new licensees don’t have access to bank loans or large cash reserves, and operating in the cannabis space makes it harder to get any kind of financing.

However, like Colorado Cannabis Business Office There is $4 million available to help those who are eligible. More such programs are needed at the state and local level to help offset the high start-up costs for operators.

Next, the pain points that come with shipping cannabis in Colorado need to be addressed and addressed. Currently, couriers must comply with Metrc, but use pen and paper for things like Metrc checklists and record keeping. Drivers will also need to digitally scan the customer ID.

Focusing unnecessary energy on the organization means fewer deliveries can occur per hour—the main reason why delivery costs are so high for consumers.

Tech companies are looking at these businesses and creating solutions for them. CannaHauler, a delivery technology company dedicated to solving pain points.

Its software allows operators to digitize their Metrc listings. This reduces manual work while meeting compliance needs.

The technology determines the best route for delivery drivers, reducing costs such as gasoline and vehicle maintenance. CannaHauler also allows drivers to verify customer IDs when products are dropped off.

A Bright Future for Colorado Cannabis Delivery

Delivery operators in Colorado need to increase the number of deliveries per hour to reduce the fees associated with placing an order.

Once the fees come down, more pharmacies and customers will start adopting the delivery method.

This all happens when cannabis delivery operators have the right tools and technology, access to funding for startup costs, and the support of Colorado state government and cannabis industry veterans.

A major shift in cannabis ordering is expected in 2022. Colorado, which paved the way for cannabis back in 2014, has the potential to continue to lead by example, with delivery workflows as an example.