DoorDash cannabis delivery

There are a good number of mainstream companies making their way into the cannabis industry in recent times and DoorDash might just be the next in line. While it’s still not certain what is to be expected from the company in the months to come, they are certainly not saying no. Are any of the rumors flying around to be believed? Is it a bit of a stretch and mostly unachievable in the nearest future? Read on as we carefully look into what to expect in the coming days.

Opportunities in the Cannabis Industry

For those who are conversant with the workings of the cannabis industry, you will know the industry is multifaceted. This is to say that the cannabis industry comprises several sectors working together to give rise to what is commonly called the cannabis market. From cultivation to production or extraction, packaging and distribution, different processes goes into getting the product into what is desired by the customer. The presence of these different processes has allowed the introduction of everyday production and logistics companies into the cannabis industry.

From the cultivation of the herb on farmlands to fast food chains celebrating the 420 holidays with cannabis-themed treats, many companies are getting interested in the cannabis industry. The burgeoning sales of products and growing acceptance of cannabis by the populace are also sure to be a major positive influence. With more states opening up legal markets in different areas of the country and the federal government seeming to be leaning towards legalization, more moves are to be expected.

DoorDash and Cannabis Delivery

Cannabis delivery is one aspect of the cannabis industry structure that has longed desperately for the introduction of able and equipped hands. Steve Moser who writes for MacRumors seems to believe that DoorDash will be making the move into cannabis delivery very soon. He made this known on his Twitter page recently where he stated that DoorDash is already working on diversifying into cannabis delivery. This is expected to be huge as DoorDash is an established food delivery company that has a strong customer base with efficient services.

The celebration around this proposed move by DoorDash is also expected to draw the attention of similar firms to the cannabis delivery sector. The presence of such firms along with proper regulations will curb some of the problems facing the cannabis industry presently. Medical marijuana patients will be able to quickly have access to their products at the comfort of their doorstep. This comes with full assurance in the capabilities of logistics services of companies such as DoorDash. The company has done extremely well with its food delivery services and has since become a household name in the nation.

What to Expect if DoorDash Enters Cannabis Delivery

It is beautiful to say that the entrance of DoorDash into the cannabis industry will bring efficiency and effective services. However, there are a number of questions and peculiarities that surrounds cannabis delivery which makes it very different from the normal food delivery the company is used to. First is the problem of legalization and policies. The cannabis delivery sphere is not the same as any other out there as there are many loopholes that regulatory bodies can easily exploit to make things tough for parties involved. Another issue is proper identification to ensure that all beneficiaries fall within the required age limit and fulfill the necessary legal criteria to have access to such products.

While most of these questions are reasonable inquiries, Steve Moser seems to have an idea of how DoorDash intends to go about this. He added some points on his Twitter page which he got from an unnamed inside source. Moser started by stating that DoorDash is already sending out necessary signals after it attached cannabis-related texts to its app. According to Moser, DoorDash proposes to have customers pay for their orders when they arrive at the store and provide the required ID.

Smooth Sailing or Troubled Waters?

While there is much enthusiasm in many quarters surrounding what this move might mean, many are still not convinced. This is major because of the possible drawbacks this move can have on the company, especially with the issues affecting policies from the federal government and regulatory agencies. Issues such as the possible loss of an NYSE listing if the firm goes into delivery make it hard for some to believe this move is feasible. This is because delivery drivers that will be involved in this exercise cannot be independent contractors but will have to be employees. Uber Canada has started taking cananbis delivery orders as cannabis is Federally legal in Canada.

A spokesperson for DoorDash recently replied after Benzinga reached out to the company to ask if it was reaching out into cannabis delivery. He stated that at the time of the inquiry, the company does not have any new updates to share with its customers. He however emphasized that the company is always on the lookout for new and innovative ways to give its customers convenience and opportunity through its platform. While this is not an affirmation, it is still not a denial in many ways.

The economic impact is also expected to be an incentive for DoorDash as cannabis delivery is bound to raise stocks and promote returns. The company was 5.68% down on Monday at $103.10 amid overall market weakness which also affected other stocks. It is therefore no surprise that many are tipping DoorDash to make this move in the nearest future given the expected financial benefits.

Bottom line

It is hard to give a definite answer at this point to the possibility of DoorDash making a move into cannabis delivery. Many body languages from the firm and outside bodies might suggest so but it is still too early to categorically state it at this point. Where the pendulum will swing, only time will tell. Nonetheless, the cannabis delivery sector is bound to be grateful for the exposure even if DoorDash doesn’t complete the move. This is because their presumed interest will also facilitate the interest of other smaller delivery firms which is a win-win situation for the industry.