Cannabis Deliveries Surge During Coronavirus While Dispensary Customers Cash in Loyalty Points

Self-isolation measures have prompted cannabis home deliveries to skyrocket during the COVID-19 outbreak.

Cannabis deliveries in Nevada have skyrocketed, following Governor Steve Sisolak's recently issued mandate that all marijuana retail locations enter shutdown, as part of a bid to stem the tide of the COVID-19 virus infections throughout the state.

Luckily for dispensary operators, Nevada is one of the few US states that allows for the home delivery of cannabis, which means that they can continue operating as despite the lack of storefront activity.

Typically, we're able to operate in this on-demand environment while these orders are coming online. We've seen a huge influx in new users, they're curious. They're doing nothing but sitting around their house, so why not get stoned? We're also encouraging people to maximize their orders, so they get what they need all at once. It's just like at the grocery store. Maybe take one more can of fava beans. Blackbird Go spokesperson, Jamal Barghouti

The news came as a relief to many, as cannabis retailers are considered to be an "essential business", as the drug is used by healthcare providers for the treatment of a range of issues, including epilepsy, cancer, Alzheimer's disease, chronic pain and PTSD.

In fact, some dispensary owners—including Blackbird Go, one of the state's largest cannabis retailers—have seen an incredible 400% increase in cannabis delivery orders.

Over the past week legal cannabis purchases throughout the US have also increased by roughly 30% according to a recently published report from BDS Analytics.

The world has been in a panic ever since the new Chinese coronavirus disease—which is now officially known as COVID-19—began stoking fears of a global pandemic in early 2020.

The CEO of Ayr, Jon Sandelman, confirmed that all five of the company's Nevada-based dispensaries will soon be offering home delivery, which is putting the company on track to fulfilling 4,500 transactions per day.

"People are learning that we can just work in a cloud. This experience is going to teach a lot of people about how they will run their business in the future," Sandelman said.

"This has increased our footprint, it's increased our reach."

Meanwhile, a newly published data analysis from Springbig—which is a cannabis marketing platform with over 12 million users—has revealed that cannabis consumers are rapidly cashing in dispensary loyalty points to secure discounts amid coronavirus panic-buying outbreaks.

Dispensaries in Washington saw the number of loyalty redemptions more than double in the space of a month, after seeing an 113.8% increase during February.

During the same period, Californian cannabis retailers saw an increase of 87.9% —going from 199,788 to 375,478 redemptions—as consumers seek to save money wherever they can.

And it appears this trend is set to continue, as an increasing number of cannabis dispensaries look to leverage tried-and-true marketing techniques like loyalty programs, as a means of retaining their customer base during social distancing periods.


This could be one of the best investing opportunities of 2020

Legislative changes are blowing through the US, and with it, an ever-increasing number of states legalising cannabis for recreational use.

With the success seen in Illinois, which legalised for adult-use on January 1 and saw products moving off the shelf at an unprecedented rate, this company is primed to take advantage of the booming US recreational market.

They have secured partnerships with the biggest cannabis companies in the US, and their portfolio is second to none.

And with the sector-wide pullback of 2019, this company is now at a bargain-basement price.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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