Ondemand Cannabis Delivery Services: The Hottest Revenue Streams in The Weed Market

Cannabis, popularly known as Marijuana has been used for many years in many countries for medicinal, spiritual, and recreational purposes. The demand and the popularity of cannabis have increased for few years owing to increasing awareness of the benefits of the plants among people. Presently each and every sector is aware of the importance of getting in touch with the customers digitally. Not only this but also many industries are opting for on-demand services by making a strong presence in the e-commerce space. Getting cannabis delivered at the doorstep is similar to the Ondemand Cannabis Delivery Services that would be easier for the customers as well as service providers.

Currently, around 35 states including Germany, Israel, and Canada have now legalized the use of cannabis. This way medical marijuana industry has started to enter into the mainstream business. But there are only a few licensed stores that are providing on-demand cannabis delivery services to their customers despite the heavy demand. In fact, it has become one of the topmost revenue streams in the global cannabis market. So in this article, we have discussed some crucial insights into the cannabis delivery market. But before that let’s have a look at the business model of the on-demand cannabis delivery app.

What Are The Business Models Of The Cannabis Delivery App?

The cannabis delivery services business models are bifurcated into three parts:

Delivery Model

In the delivery-centric model, the business owners will take the charge of the entire delivery operations. This model is specifically for those who don’t have any knowledge regarding the roles and responsibilities of cannabis manufacturers. The businesses can collaborate with cannabis stores or dispensaries for providing quality delivery as well as logistics services. This way the entrepreneurs can charge commission on every order made by the customers. Not only this but also it is mandatory to sign an agreement between the entrepreneurs and cannabis stores.

Single Store Model

This business model is for those who already own a cannabis store, they can get their own cannabis delivery app developed. As they are already associated with the business and have a strong presence in the specific location, the single store business model is the best option to increase their sales. This way they can expand their services area without even competing on an aggregate platform or without making a partnership with another service provider. Here the businesses can hire any third-party delivery service or custom delivery fleet. When the customers place the orders on the platform, they get faster deliveries.

Aggregator Model

The aggregator business model is such a platform where the customers and stores interact with each other and is one of the most popular choices of the startups in the cannabis delivery niche. This business model helps in building a strong network that connects the stores and helps the customers make smooth purchasing of the products. Not only this but the aggregator model also provides flexibility to the freelance delivery boys who can provide their services. This way they can earn maximum revenue per month. If you are thinking to develop marijuana delivery software in this model, you need to take three segments into consideration in your business plan.

Buyers

The buyers are the driving force in this business model as they are the ones who will be purchasing your products online. Now the buyers can either be the patients who are suffering from specific medical ailments or some people who are having recreational purposes. These people will be acting as the prime user base of your Ondemand Cannabis Delivery Service business. And the second most important thing you need to go for is getting your own interactive and advanced on-demand cannabis delivery software.

Related read: Everything You Need To Know About Cannabis Delivery App Development

Dispensaries

The cannabis stores or sellers get their own app exclusively designed with unique features which will help them to seamlessly manage their operations. These sellers don’t have their delivery organizations and take their business on board in the on-demand world. The dispensaries or stores can sync their product catalog in the on-demand cannabis delivery app which will allow the users to choose their desired product and place the order. The app also has an option through which the sellers can easily manage their inventory and keep them updated with the stocks in no time.

Delivery Executives

No matter which Ondemand Cannabis Delivery Services we are talking about, delivery fleets are the crucial parts because they help your business to deal with the customers in the final moment. The delivery executive app is developed in a simplistic way for providing easy direction to the delivery boys. The customers can directly track the activities of the delivery executives right from collecting the order to getting the product delivered at the doorstep. Not only this the app is also featured with GPS navigation and push notifications through which the customers get the update of their order status.

Revenue Models Of Ondemand Cannabis Delivery Services

Following are some of the points which explains how you can earn maximum revenue from your cannabis delivery business just like other on-demand businesses:

Advertisement

Advertisements are the most preferred revenue models by entrepreneurs and it is proven effective when it comes to earning maximum income. The businesses can provide services for the advertisement for the stores. These ads will display the dispensaries that are willing to promote their products online. By doing so you can earn a commission for displaying their ad on your application. The charges may vary depending on the content and its duration.

Commission And Fees

The entrepreneurs can charge a part of the income of sellers as commissions on every order placed by the customers on the app. Not only this you can even earn additional income by adding delivery charges based on the delivery location that is mentioned on every order.

Membership Plan

Membership plans basically aim to attract more customers by providing exclusive services and offers. The paid members can also get early access to special offers, zero delivery fees, freebies on every order placed, and various other exciting offers.

Price Hike

Sometimes you can even increase the price of the most demanded products to earn extra income. So, this is the general revenue structure of an Ondemand Cannabis Delivery Services app. However, you can even explore more revenue options.

Prepare A Blue Print Before Going For The Marijuana Delivery App Development

When you are thinking to develop a cannabis delivery app, meeting the regulatory requirement is the crucial part. We will discuss it separately. Before the app is under the development process, you need to complete all the security as well as verification procedures. If you want to make your business unique from others, your approach should also be unique. Let us delve into the basic steps which you are needed to be followed in the app development process:

Know The Market

Before entering into the on-demand world of the cannabis delivery business, you should gather complete knowledge about the market. For instance, make sure to check if the cannabis delivery business is legal or not. This is because there are still many restrictions on the business of marijuana, so legalities should always be your first priority. You need to have the licenses and other documents from the government ready with you.

Understand The Business And Revenue Model

Once you have gathered knowledge about the market, it’s time to choose the models as per your needs and requirements. You can either opt for a single store model, aggregator model, or delivery-centric model. After choosing the business model, you can finalize the model which boosts the revenue of your cannabis delivery business.

Budget Estimation

The cost of the on-demand cannabis delivery app development varies depending upon the features as well as the platforms that are used for the app. However, you can always get in touch with the investors who are willing to collaborate with you for the sponsorship.

Related read: How to start cannabis delivery business with least investment

App Development

The app development process is a bit time taking as you need to consider various points in mind while your app is under construction.

• Firstly, you have to approach a mobile app development company and discuss all your requirements.
• As an entrepreneur, you need to ensure that your business idea is unique and you are in search of a unique solution. Not only this but also ensure that the prototype should be tested before the app is live.
• You can ask the app developers that you want to launch your application across multiple platforms as you want to engage maximum users.
• Integrate social media platform options that will help in building awareness among the audience about your business.
• Once the app is launched, go through the user metrics and customer feedback and make the changes accordingly for the growth of your business.

Testing Process

For the app testing, you can integrate APIs/SDKs for Stripe, DoseSpot, Bringg, BigCommerce, Twilio programmable SMS, and Google Maps. Finally start testing the app by using Xcode, the popular IDE, and Xcode. You also have to integrate identity verification, delivery logistics, payment gateway, mapping, and several others.

Application Management

Once your cannabis delivery app is launched, it’s time to focus on app management. You can make use of analytical tools for improving overall performance as well as efficiency of the app as per the changes occurring in the market.

Elements You Need To Scale A Marijuana Delivery Software Business

There are three main things that will significantly impact the capability of whether or not ready to scale an Ondemand Cannabis Delivery Services. Following are the three factors:

More Money

This is the first and the significant factor which scales up the marijuana delivery business. Your cannabis delivery app funding model should have the capacity to support all the financial requirements as well as necessities that will come strung with scalability needs. So arranging finance is the first thing that you should take into consideration.

More Originality

As you are into the cannabis delivery industry, you should act as an innovator to provide something new to the customers. But while doing so, you will find many other businesses are following your strategy. So to scale up your cannabis delivery business, you need to think out of the box and provide the best to your customers. The consumers will only stick by your brand when you come up with growth ideas.

More Help

Taking the help is the essential step that you need to take into consideration if you want to grow your business to the next level. The best thing you should do is to prepare a team that will work for converting your dream idea into a large-scale business. Once you are done with hiring a team for scaling up your business, you need to assign tasks to ensure smooth operations among the workers. Apart from this, another factor that you have to keep in mind is being proactive. Being an innovator you always have to be aware of the future challenges and how you can work to win the race.

Related read: How To Scale Your Delivery Business Amidst Challenges

Challenges Faced By The Growing Delivery App Businesses

The challenges are very common when it comes to scaling up a cannabis delivery service business. But there are some common challenges which most cannabis delivery service entrepreneurs face when they decided to scale their business have already crossed the development and launching phase of the app.

Huge Competition

As the days passing by, more and more cities, as well as countries, are coming up with the unique idea of making east delivery of medical and recreational cannabis mainstream, entrepreneurs from different parts of the world are willing to be a part of this ever-growing sector. The sudden increase in the demand from the business owners has resulted in huge competition that is going to hit the charts.

Lack Of Financial Opportunities

When it comes to the money-related challenges, it is not limited to the lack of funding platforms for the cannabis delivery startups but it also becomes challenging to store the transaction amount. As we all know there is a lot of money in the business as you don’t have to think about the inventory and the overall cost of developing the marijuana delivery app is not that high. But there are very few banks that accept the amount that you earned from cannabis transactions or provide the facility for storing the money as well.

Hitting A Rut

The cannabis delivery business proves to be a profitable avenue for the app owner as they don’t have to deal with the stringent rules or cultivation efforts. But here’s a twist. As on one hand, your cannabis delivery business model hits an absence of growth idea state early, on the other hand, your profit percentage starts to decrease.

So these are three challenges that will provide an adverse impact on the scalability of the cannabis delivery business. But the presence of such challenges will make the entrepreneurs work to come with a unique approach to scale the business along with the well-planned strategies.

Wrapping Up

As we have already mentioned a lot of rules have been made by various nations for legalizing the selling and consumption of marijuana. Furthermore, the latest upliftment of the cannabis market of on-demand services and e-commerce has proven to be a blessing for the entrepreneurs who were waiting for so long to utilize this opportunity. 

However, there are still many things that you need to take into consideration to earn maximum revenue.  Discovering the market, knowing the audience, supervising the legal matters, and many more. If you are willing to take apart to earn huge revenue from your cannabis delivery service, it is imperative to discuss with the experts at the earliest. Our Cannabis delivery experts of AllRide Apps will help you take the easy road.