As marijuana delivery services continue to rise in popularity, the state of New York recently released guidance for adult-use retailers that are interested in providing delivery services. This sets the stage for the first sales even before licensees have storefronts — allowing for deliveries via bikes and scooters, as well as motor vehicles.
Expand Your Cannabusiness Beyond Recreational Sales
All Conditional Adult-Use Retail Dispensary (CUARD) licensees interested in making sales by delivery will need approval from the Office of Cannabis Management. Once approved, you can begin delivery to customers. Jumpstart sales of New York cannabis products with a model that will help you compete and grow your cannabis business.
The Office of Cannabis Management delivery guidance allows:
- Retail licensees to secure a warehouse from which to fulfill delivery orders while building permanent dispensary locations for up to one year.
- Customers to place online/phone orders only. No cash payments from cannabis consumer to delivery employee.
- Customers to make online pre-payments only. No cash pre-payments.
- Delivery to be made by bicycles, scooters, or other similar methods of transportation as well as motor vehicles.
- Delivery to consumers 21 and older in New York, with ID verification upon sale and delivery.
- Up to 25 delivery staff per business, per requirements in the New York Cannabis law.
The temporary delivery authorization will:
- Apply to all retail dispensary licensees
- Require adherence to all public health and safety regulations
Securing Retail Locations
Guidelines permit licensees to fulfill deliveries out of a warehouse location while their storefronts are built by the Dormitory Authority of the State of New York (DASNY). This is a shift in how regulators are pursuing the launch of the adult-use market, as the initial expectation was that sales wouldn’t start until DASNY built the CAURD storefronts. DASNY will continue the work of securing retail locations and locations will be matched with licensees as they become available.
Officials say that they will be selecting 150 CAURD applicants in total before expanding the application pool to others. To qualify for the special retail license, applicants must have faced a conviction for a cannabis-related offense prior to the enactment of legalization in the state, or have a direct relative with such a conviction. They must also have experience operating a qualifying business.
The Future of Delivery Services
When asked about the popularity of cannabis delivery services, Scott Vasterling, Founder of Humboldt Family Farms, says he sees an uptick in this trend this year. “I think that people have become used to ordering things online, especially after COVID. Whether from a large retailer or local brand, it is something that people have success with.”
Humboldt Family Farms delivers to its customers in California, and they do so in discreet packaging. Cannabis delivery works for customers who may have a hectic schedule and don’t have time to come to the store. Just in the last quarter, the cannabis company saw an 80% increase in delivery orders.
“It really depends on the state, obviously, but I think same-day delivery from dispensaries will be commonplace. I also think we will see more technology rolled out to validate and verify we are dealing with the correct customer and that the products aren’t being delivered to someone who is illegal. There have to be controls in place to ensure proper delivery. I think this is a trend we will continue to see,” Brian Fitzpatrick, CEO of Qredible, said.