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The cannabis industry has come a long way ever since medical marijuana first got legalized in California 1960.Despite social stigma, 29 US states have been legalized for medical marijuana consumption as well as the territories of Guam, Puerto Rico and the District of Columbia. Due to which, the cannabis industry and weed delivery app’s have been on a constant rise and continue to remain so.
Business, Market & Economic Impact
Let’s associate some data with the cannabis industry up till now –
- According to Forbes – In North America, 6.7 Billion USD is what the Marijuana sales totaled at with a growth rate of 30% in 2016.
- North American sales are further projected to achieve 20.2 Billion USD by 2021 with an estimated annual growth rate of 25%.
- To help put this in perspective, According to Tom Adams – Arcview’s Editor in chief, “The only consumer industry categories I’ve seen reach $5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990’s and the broadband internet (29%) in the 2000’s.“
- Approximately 655 million USD in taxes was collected from states that legalized marijuana, of which 559 million USD will come from cannabis taxes.
- It is further forecasted that 1.8 billion USD of taxes will be collected from legalized states, of which 1.4 Billion USD will be from cannabis taxes.
- According to Colorado Department of Revenue – A 57.2% increase in total marijuana taxes collected from FY 2015-2016 to FY 2016-17 till Jan’17.
- In 2016, Colorado was able to put 16 Million USD for affordable housing grants and loans from taxes collected from cannabis-related sales.
It is the combination of the 25% annual growth rate with the positive impact it can have on the economy, that makes entering the cannabis industry such a unique and appealing opportunity for investors and entrepreneurs alike.
Eaze – The Forerunner For Weed Delivery Apps
Eaze is a mobile app for on-demand cannabis delivery and popularly regarded as the “Amazon for Marijuana” or “Uber for Marijuana”. Started in 2014, Eaze has been on nothing but an upward journey to be one of the top players among various weed delivery brands.
Being nominated for the best startup in 2015 by TechCrunch, Investors have been flocking to Eaze for its simple yet revolutionary idea for providing an Uber-like service for marijuana delivery between marijuana dispensaries and patients.
“Improve lives by providing safe, secure access to the highest quality cannabis products at the lowest prices with the utmost convenience” – Eaze Mission
“In an incredibly short period of time, Eaze has led the charge into an industry projected to grow from $7 billion this year to $50 billion by 2026” – David Chao, Eaze Investor
Eaze has also dedicated time to submit a report from its own vast user base of 250,000 users and 5000 survey participants to deliver key insights on the current cannabis industry.
According to the report
- Baby boomers(born between 1946 to 1964) are the fastest growing population for marijuana consumption and usage of weed delivery apps. This user base grew by 25% per year and spend nearly 36% more than their millennial counterparts in a given month.
- Silicon Valley is the 3rd fastest growing market in California due to Eaze deliveries. The famous stretch of the San Francisco peninsula houses many tech giants such as Facebook, Google and Apple.
- The sale of vaporizers rose by a whopping 400% just between 2015-2016. One in every five orders in Eaze contained a vapouriser cartridge.
- Cannabidiol(CBD) based products saw a 35% increase in sales in 2016
- 82% of respondents reduced their alcohol consumption, and 11% quit alcohol consumption completely.
Investors – Making It Rain On The Cannabis Industry
Since medical marijuana has been accepted in the majority of US states and California legalizing marijuana for recreational use from Jan 1st ’18, investors are pouring millions into this industry to capitalize on the gold rush as quickly as possible. Some key mentions are –
- BenchMark is investing around $8 Million in Houndlabs, for creating a device to test if a driver is too “buzzed” to take the wheel.
- Since 2010, ArcView has aided in raising $131 million USD in cannabis companies.
- MedMen, Los Angeles-based private equity firm, had raised around $80 million for cannabis projects in 2016.
- Eaze raised $27 million in series B financing this year.
- Gateway – Premier cannabis startup accelerator and venture fund, invests $50k each in up to 10 cannabis startups, twice a year.
The legalization, growth and success of weed delivery apps are clear indicators that the cannabis industry, is here to stay and will inevitably become a part of global and local communities.
Making a move into the cannabis industry either as a marijuana dispensary, weed delivery service or both, would provide nothing short of the following:
- The vast and diverse target audience that increases year on year.
- Market gap still open for new players.
- Marijuana legalization still spreading to new untapped states.
- Ever increasing supply-demand business model due to the perishable nature of marijuana.
- Sustainable growth for your business.