In the latest disruption to the cannabis delivery space, High Tide Inc., a Canadian company that makes retail CBD products, announced this week that it will begin offering on-demand delivery out of select Canna Cabana dispensaries across Canada. Canna Cabana is one of the Calgary, Alberta-based company’s banner stores, with 111 locations across the country.
Under the new program, dubbed Delivery on Demand, customers can order online and have their CBD products delivered within two hours, or within a scheduled hourly time slot of their choice. Users will be charged a CA$9.99 delivery fee (US$7.86), and there is no minimum purchase size for delivery orders.
The service will launch out of Canna Cabana locations in the provinces of Ontario, Manitoba and Saskatchewan, with plans to expand the service to all locations. That includes Alberta, where, according to guidance from the provincial regulator, High Tide (NASDAQ: HITI) will be able to offer a private cannabis delivery service beginning on March 8.
“Through this on-demand approach to cannabis delivery, we are creating an experience that we know will be enjoyed by Cabana Club members across Canada,” said Raj Grover, president and CEO of High Tide. “By choosing to use Delivery on Demand when ordering from Canna Cabana, our customers will be able to access our unbeatable prices from the comfort of their own home, with the added peace of mind of knowing exactly when their delivery will arrive from the moment that they place their order.”
Watch: Blazing trails in cannabis logistics
As Brian Straight, Modern Shipper’s managing editor, noted back on 4/20, the cannabis market is full of opportunities for transportation and logistics. Consumers are looking online for just about everything these days, including cannabis, which has spurred the growth of a red-hot cannabis logistics market.
Lantern and Emjay, a pair of U.S. companies that were both founded in 2018, have been some of the earliest proponents of the service. Currently, Lantern offers deliveries of products including flowers, edibles and vapes in three states, while Emjay delivers cannabis products in the Los Angeles metro area in as little as 30 minutes.
According to Grover, tapping into the burgeoning cannabis delivery market can not only save consumers time and money, but also keep them safe.
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“In addition to creating a fantastic delivery experience for our customers, this initiative also represents a proactive and thoughtful approach to competing with and drawing consumers away from the illicit cannabis market, which we know remains resilient in part due to their offering of unregulated delivery services,” he said. “We plan on introducing this program in all provinces where we operate as soon as possible, and I look forward to seeing the growth and success of this program as we roll it out across Canada.”
So far, growth hasn’t been much of an issue for High Tide — the company announced Wednesday that it had surpassed 420,000 members in its Cabana Club loyalty program, an increase of 71% since the program was launched this past October.
Cabana Club sets High Tide apart from other cannabis retailers, positioning it as one of the few companies in the space that uses a discount club concept. Members of the program have access to perks like lower prices and exclusive deals. Long term, High Tide hopes to turn the program into a global community of cannabis users. But for now, users will have to settle for delivery on demand.
“We strive to consistently roll out innovative and forward-thinking service offerings for our customers, and today’s announcement is no different,” concluded Grover.
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