Movers and SHAKERS
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Delivery as a Service Business Model is Serving Marijuana Customers
The “stay at home” mindset that was adopted over the past year has forever altered the way in which we work, visit with others, and shop. It had become necessary to embrace other options for a while. But, even when the temporary lifestyle changes we made are no longer necessary, many of the alternatives will continue to be common methods of doing business, visiting others, and buying goods.
Delivery as a Service
Ecommerce was particularly relied upon by those that might otherwise have run to the store for clothes, home furnishings, electronic upgrades, etc. Curbside Pick-up saw a massive increase in new customers and adoption by many businesses that had never considered it.
As part of this larger shift in consumer buying methods, the delivery as a service (DaaS) business has grown dramatically. DaaS consumers are now getting on-demand delivery of everything from groceries to prepared meals, liquor, and anything else that a retailer can provide in this way. It’s a great add-on service for anyone who sells retail products, home goods, groceries, prepared food, even alcohol. Today, even traditional sellers such as Apple, Walmart, Publix Supermarkets, and 7-11 are offering delivery options to their customers. The convenience will keep customers using the services long after there are any pandemic-related restrictions. In fact, the practice is expected to grow.
DaaS and Cannabis
Over the past few years, cannabis has been quickly losing its stigma. CBD oil is legal in all 50 states, medical marijuana is legal in 36 states, and recreational use is permitted in 17 of the 50 U.S. states. This growth in usage and acceptance has been taking the once illicit product and taken it more mainstream and overt.
Companies involved in cannabis products know that the potential growth of the industry is huge, and also that competition to survive and thrive as the industry matures requires adopting successful methods proven by other industries. This has come to include local delivery with cars standing-by and stocked with product, and also pick-and-pack orders from retailers.
STEM Holdings (DBA, Driven by STEM, ticker STMH) is involved in the cultivation and retail sale of marijuana. As part of their multichannel approach to sales, they have built a “farm to home” model. The CEO of Driven by STEM, Adam Berk, met virtually with Noble Capital Markets Senior Analyst, Joe Gomes, for a C-Suite interview released this week. Adam discussed his company, the impact of Covid, a recent acquisition, and plans to expand the company’s AI informed “ice cream truck” model of delivery.
In the recorded interview, the STEM Holdings CEO was asked about their acquisition of a cannabis delivery service and what the plans are for their non-brick and mortar retail outlets. Adam explained that “Easy, convenient accessible ecommerce delivery makes sense whether your buying toothpaste, toilet paper, or cannabis.” Berk discussed this portion of their business model by saying,”…it’s important to be an omnichannel retailer, it’s important to make delivery to homes. Buy behavior has completely changed for every consumer, and we just don’t see that going back.”
The Stem Holding C-Suite interview offers insight into how technology is changing how consumers select and receive products and how individuals can be better served - DaaS is not going to disappear. The discussion, of course, also covers the cannabis industry and how Stem is finding new ways to better their product and the customer experience, it’s well worth watching.
You can view the entire video by clicking on the first link below.
Stem Holdings, Inc. CEO, Adam Berk – C-Suite
Medicine Man Technologies, Inc. CEO Justin Dye
Artificial Intelligence Investment Opportunities
Medical Cannabis Companies vs. Recreational Cannabis
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