How to Start a Cannabis Delivery Service in 2023

Courier hand passing package with marijuana to client close-up

Since California passed a law allowing for the sale and medical use of marijuana back in 1996, many states have decriminalized cannabis, passing legislation that permits the sale, possession, and use of cannabis for recreational purposes as well. Today, the cannabis industry is undergoing rapid growth, with a projected market volume of almost $100 billion by 2027.

As a result, entrepreneurs who want to take advantage of the opportunities this growth brings have plenty of choices. One option: a cannabis delivery company.

Why Start a Cannabis Delivery Business?

In the TV show “High Maintenance,” the main character delivers his product to his New York City customers by bicycle. But it’s not just New Yorkers who appreciate the convenience of marijuana delivery: the geographical distance for many time-pressed customers from dispensaries has made it an attractive option around the country.

Delivery also requires fewer startup expenses as there is no need for a physical storefront or even vehicles with certain delivery models. Owners also have the flexibility to choose the delivery area, fees, and hours.

Delivery services also face fewer regulatory hurdles, although laws vary by state, making it essential to do your due diligence before launching your business.

The Benefits of Cannabis Delivery Business

Beyond convenience, cannabis delivery services make the product more accessible to people who may not have their own or reliable transportation, as well as individuals with disabilities or a chronic illness. Cannabis delivery services can offer them much-needed relief from pain, anxiety, and other symptoms.

Delivery services also can give a dispensary business a larger footprint and customer base, leading to greater revenue and profits.

Know Your State’s Cannabis Delivery Laws

Even states that have legalized marijuana may not allow delivery. Check your state’s laws and research what licenses are required. Some states permit delivery under a retail license, while others, such as Massachusetts, have different types of delivery licenses that may apply.

Keep in mind that state cannabis delivery laws may have very specific restrictions on advertising as well. These can affect the medium, wording, and location of promotional materials.

The Importance of a Cannabis Delivery Business Plan and Model

When seeking funding and loans to start your business, it’s critical to have a business plan that includes the delivery model you’re going to use. This shows lenders that you have done your research, giving them confidence that you are prepared to take on the challenge of starting and running a cannabis delivery business.

Your cannabis delivery business plan should incorporate the delivery model you’ve chosen. Again, options will depend on state laws, but two typical models are the pizza delivery style, in which drivers deliver cannabis to customers’ locations from a central location, or the “ice cream truck” model to supply customers on the go.

How Can Paybotic Financial Help You?

Paybotic Financial provides banking solutions in partnership with Regent Bank, Member FDIC, specifically for the needs of cannabis businesses. We understand state and federal laws and regulations regarding compliance and taxes, so you can always feel secure that you’re meeting all requirements. We also have more than 10 years experience working with cannabis businesses and can work out the appropriate financial solutions to meet your needs.

When you’re considering how to start a marijuana delivery service, make sure you choose a payment solution designed for the industry. Learn more about the services and benefits we offer with our sister company Paybotic.

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