This article originally appeared on Cannabis & Tech Today and appears here with permission.
Many would say that 2020 has been the most stressful year in a generation.
Between a polarizing US presidential election, a novel coronavirus pandemic killing more than 268,000 out of 13.6 million reported cases (as of November 30), fluctuating and unreliable data, and millions of people who may be stressed due to With the continued isolation of loved ones due to phased closures and social distancing measures, along with the never-ending rise in unemployment in sight, it’s understandable that Americans feel heightened anxiety and insecurity.
However, one set of data to be trusted is that Americans are turning overwhelmingly to cannabis, and cannabis delivery, to ease their tensions in these trying times.
Enter the rise of cannabis delivery companies and the ancillary services that power them.
Lantern: a light in the darkness
Lantern is an independent cannabis e-commerce marketplace and delivery platform in the United States
It is a sister brand powered by the same technology as the alcohol e-commerce platform, Drizly.
With the speed and convenience of on-demand delivery, Lantern partners with local dispensaries and cannabis brands to bring transparency, security and access to cannabis to new and experienced consumers through intuitive shopping experiences and personalized.
Lantern’s expertise in regulated industries helps dispensaries operationalize on-demand delivery.
This process enables its customers to reach new customers, leverage key consumer insights and diversify their businesses to increase sales.
According to its website, Lantern’s on-demand cannabis home delivery platform provides
legal and convenient access to cannabis dispensaries and their products for holders of a state-issued medical marijuana card.
The interface compares product selections and prices from various dispensaries, allowing patients to place dispensary orders with direct fulfillment at the customer’s home.
Coming from customers overwhelmed with choice but wishing to explore cannabis with confidence, Lantern aspires to bring transparency, fairness and access to cannabis.
Jane says she’s done with Sergio
Jane is a similar online cannabis marketplace with a network of over 1,300 dispensaries in 28 states that offer pre-orders and deliveries online.
After receiving a call from one of their San Francisco dispensary partners on Friday, March 13, Jane launched a software update that allows curbside orders and pickup within 24 hours.
This capability effectively keeps clinics like Harborside, The Apothecarium, and Airfield running and prevents patient medications and related supplies from running out.
Jane Technologies, Inc. is the retail technology company that created the marketplace for the cannabis industry iheartjane.com, which provides consumers with a reliable and intuitive shopping experience.
Users can browse local products in real time, compare by price, proximity, popularity, and then place orders for free at local dispensaries.
As people continue to shop online at increasing rates, Jane is also working hand-in-hand with brands to create innovative ways to stand out with the consumer instead of in-person recommendations, including branded modules and verified customer reviews.
Data from over 1,600 dispensaries shows the initial and significant increase in online cannabis purchase, decline, and then level off at a much higher rate than before COVID-19.
On a related note, Jane calculated a huge increase in orders on election night.
The company saw 60% higher online sales per store throughout the day, with hourly increases.
“The future of retail has always been digital, and the pandemic has only accelerated it. Right now, we have the opportunity to merge retail technology and infrastructure in an entirely new way, where digitization can support physical businesses rather than replacing them, ”said Socrates Rosenfeld, CEO and co – Jane’s founder. Technologies.
“At Jane, we are grateful for the opportunity to help shape the future of retail for the new digital age, where customers can shop online from local retailers with the same level of security, convenience. and retention than when shopping on Amazon. “
Drop it like it’s hot
When it comes to how Drop Delivery compares to Lantern or Jane, these latter two platforms are marketplaces for cannabis consumers to discover local retailers and shop from them.
According to Vanessa Gabriel, CEO and co-founder of Drop Delivery, her business is different because it offers a turnkey solution.
“As an all-in-one delivery management solution for retailers, Drop provides our customers with the software they need to manage their day-to-day operations and grow their businesses. ”
Drop is a proprietary software as a service (SaaS) company or software distribution model.
A third-party vendor hosts applications and makes them available to customers over the Internet.
Drop aims to provide a delivery service with everything the business could need to streamline and improve their user experience.
Drop’s software provides businesses with a branded e-commerce app, customizable rewards, a loyalty program, text messages to communicate with customers, and offers designed to increase revenue.
Additionally, Drop provides the necessary compliance integration with the METRC cannabis regulatory system for the evolution of individual national regulations.
Similar to other big box delivery companies, Drop provides last mile delivery logistics to track drivers and deliveries and a dashboard to manage everything from inventory to staff.
Gabriel agrees that delivery sales are on the rise, industry-wide, across all demographics and in specific categories of consumer packaged goods (CPGs), such as edibles.
She attributes these increases to the need for coping mechanisms during the pandemic.
“One of our customers sees his average sales increase by 150% compared to pre-pandemic sales,” explains Gabriel. “Our customers are showing an increase in the number of their customers who buy edibles. This increase may be due to customers ordering items to relieve anxiety and stress from the state of the world right now. However, what we see promising is that the redemption rate has increased significantly by 59%.
Additional sales may be due to the increase in home office or offsite environments.
Average Order Value (AOV) tracks the median amount spent each time a customer places an order on a mobile app or website.
To calculate the average order value of a business, it divides the total revenue by the number of orders.
According to Gabriel, Drop’s AOV rate is up 36% from before the pandemic.
“Customers order more frequently and buy more items per transaction,” she says.
As JFK once said, “A rising tide lifts all boats.” On that note, substantial evidence supports the growth potential of the three ancillary cannabis companies.