Cannabis Delivery Models and Landscape

As a dispensary owner, you must adopt delivery technology efficiently to succeed in the dynamic cannabis industry. The two most common delivery models are the pizza delivery model and the ice cream truck model, and you can choose between the two when deciding how you want to offer your cannabis delivery services, or even consider a hybrid model instead.

Pizza Delivery Model

As the name suggests, the Pizza Delivery Model operates just like your favorite pizzeria: drivers don’t leave the premises until orders come in. They sit and wait around the dispensary until an order is dispatched to them for delivery. Cannabis deliveries using this model have a central location (your primary business premises) where your inventory is housed, orders are prepared, and dispatched for delivery. Both logistically and financially, the Pizza Delivery Model is great for cannabis delivery operations that are just getting started.

Ice Cream Truck Model

With the ice cream truck model, instead of sitting on the business premises waiting for orders to be dispatched, delivery staff drive around their delivery zones with their inventory, waiting for customer orders to come in. The Ice Cream Truck Model is great for cannabis delivery operators that are in a position to scale and are looking to drastically reduce delivery times. Since drivers are already out in specific delivery zones with inventory kits customers can order from, delivery times are much shorter than with the Pizza Delivery Model. 

The Hybrid Model

The Hybrid Model, also known as the Dynamic Delivery Model, is exactly what it sounds like: taking the best parts of both the Pizza Delivery and Ice Cream Truck models and combining them to supercharge your cannabis delivery service. The Hybrid Model is best used by established delivery services with large delivery zones. It allows customers to order inventory from both your primary business premises and inventory kits in your drivers’ vehicles. However, it is the most complex logistically and also the most expensive to operate of the three models.

Ultimately, the model that you choose to implement has a significant impact on your customers’ experience.

Do you prefer for your customer to browse your complete menu or only see the items available for immediate delivery?

Is giving the customer the option to add an item at delivery important to you and if so, how much money will you make from providing that option?


Should You Offer Cannabis Delivery?

Over 50% of cannabis consumers in California already purchase their stash exclusively through delivery, and this trend is becoming more common in other states as well. In Canada, cannabis retailers are swiftly adapting to changing consumer behavior as well and starting to offer cannabis delivery services. Of course, you need to consider your customer demographics, margins, and delivery logistics to figure out the viability of adding cannabis delivery service to your retail offerings. However, delivery is intricately tied with cannabis ecommerce and if you operate your business in a densely populated area, then it makes sense to offer it.