LOS ANGELES, CA – JULY 12: An airplane descends to land at Los Angeles International Airport above … [+]
Eaze, considered the nation’s largest cannabis delivery marketplace, today announced the launch of its first Eaze Dispensary store located in San Diego, Calif., and the acquisition of a second dispensary in Santa Ana, Calif. These are the company’s first dispensary storefronts after seven years of operating as a cannabis delivery service.
The announcement reflects Eaze’s strategic expansion over the past 20 months to multi-channel sales, expanding access for its two million registered customers to an expanding menu of licensed products via delivery, in-store, and pick up shopping. In August 2021, Eaze announced the acquisition of multi-state retail leader Green Dragon, initiating the company’s expansion into dispensary retail in Colorado and Florida.
“Expanding access to cannabis is at the core of Eaze’s mission, so we’re always working to meet consumers where they’re at,” said Eaze CEO Rogelio Choy.
Choy explained that addition of brick-and-mortar retail is a natural progression for the vertically integrated delivery giant. “The line between delivery and in-store shopping is a byproduct of how licensing is done, not a reflection of how consumers want to shop,” he said.
“We’ve always believed that delivery and brick-and-mortar go together beautifully, and bringing Green Dragon’s retail expertise into Eaze’s mix was a purposeful way to start down that path. The look, smell, and feel of cannabis is important to many customers, which is why 47% of our customers also shop in dispensaries. Delivery, of course, is absolutely essential for convenience and access, because not everyone can or wants to drive across town — or across a county — to buy in person,” Choy said.
Delivery will remain as the company’s “backbone,” Choy said, even while it continues expanding its retail footprint under both the Eaze and Green Dragon brands. He said the company’s expansion efforts include opportunities across the United States, with a focus on potential deals in Massachusetts, New Jersey, and Oregon.
The move into brick-and-mortar allows the brand to become a more recognizable entity in is customers lives. “Eaze dispensaries are definitely a way to put a name and a face to our brand, and that’s something we’re very invested in. For a long time, we were considered an anonymous technology platform that made fast delivery possible,” Choy said.
The changes will result in meaningful benefits for consumers and brands alike. Brands will now have an additional point of sale and consumers will have expanded access to a much more significant inventory both in-store and via delivery. Choy also thinks that because of Eaze’s proprietary technology, it will be able to offer faster and more efficient delivery than whatever competitors and prior owners could provide.
The move represents continued impressive growth for the once-beleaguered operator. According to Tech Crunch, just two years ago it was unclear if Eaze would have enough cash to continue operating. TechCrunch reported that the company was experiencing significant trouble raising funds and undergoing unannounced layoffs while it was transitioning from being primarily a delivery service on behalf of retailers to operating as a delivery dispensary with its own stock.
Choy joined the company in October 2019. The company has secured several rounds of funding since early 2019 and, following its massive Green Dragon expansion in 2021, the future seems bright for the vertically integrated operator. In terms of California alone, Eaze covers 80% of the state, which is geographically and per capita the largest legal cannabis market in the country.
Eaze now carries over 100 brands and 600 individual products on its menu. To-date, it has completed 8 million cannabis deliveries across California and Michigan, which include $9 million in sales from social equity operators.
In company surveys, 47% of Eaze customers reported shopping at dispensaries in 2021. Eaze projects the addition of storefront retail in California will add 11% to the company’s 2022 state revenue.
“Eaze delivery is more popular than ever, but many customers also want to walk into a dispensary, talk to an expert budtender, and get a feel for the products,” said Austin DeAngelis, CEO of Eaze’s plant touching operations. “Eaze Dispensary brings together the joys of shopping for weed in person with our high standards and values.”
