Cannabis Delivery Services Have Seen Skyrocketing Demand During The Pandemic

Financialnewsmedia.com News Commentary

PALM BEACH, Fla., Feb. 9, 2021 /PRNewswire/ -- UBER was invented to 'deliver' people from "A" to "B". Now it's future is delivering alcohol. Recently, according to an article on CBS San Francisco, UBER announced that it is acquiring alcohol delivery startup Drizly for $1.1 billion in stock and cash. The deal, will result in Drizly being integrated into Uber's food delivery app while also remaining a standalone app.  Drizly was founded in 2012, inspired by what the company's site describes as a "simple text" between two friends: "Why can't you get alcohol delivered?" It now partners with thousands of retailers in more than 1,400 US cities to sell alcohol through its platform to be delivered in under an hour.  "Wherever you want to go and whatever you need to get, our goal at Uber is to make people's lives a little bit easier. That's why we've been branching into new categories like groceries, prescriptions and now, alcohol," said Uber CEO Dara Khosrowshahi in a statement."   Active Cannabis companies in the markets this week include NxGen Brands Inc. (OTCPK: NXGB), ISW Holdings, Inc. (OTCPK: ISWH), Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), Tilray, Inc. (NASDAQ: TLRY), Puration, Inc. (OTCPK: PURA).

The news comes as delivery services have seen skyrocketing demand during the pandemic. Uber has leaned on Eats, its food delivery business, while its core rides business has plummeted. In July, Uber acquired one of its smaller food delivery competitors, Postmates, for $2.65 billion in an all-stock deal.  The trend to add delivery to increase revenues is growing in other markets as well, specifically the Cannabis market. According to a recent report by ArcView Market Research and BDS Analytics, said that the delivery sub-market will be the highest, fastest growing stream in the market.  It concluded: "The marijuana industry is hurdling forward in sales and business opportunities with no signs of stopping.  The delivery sector is particularly one we should be keeping our eyes on, as it delivers the most promise for growth and robust revenue. As legalization heats up across the US, we can only expect delivery services to continue stepping up their game to meet the growing demand… With delivery licenses allowing cannabis delivery anywhere in California, the chance is now, and the opportunity is here."