Delivery companies having trouble turning a profit in Massachusetts

Delivery companies say it’s hard to make money with current rules

At a recent meeting of the Massachusetts Cannabis Advisory Board Market Participation Subcommittee entrepreneurs behind some of the state’s first cannabis delivery services spoke out against regulations that they say hurts their profitability. Several speakers signed up to testify as the Market Participation Subcommittee discussed several topics including an extension to the current delivery and social consumption exclusivity period for equity applicants.

Julia Germaine, operating partner at KindRun, spoke about her cannabis delivery operator business based out of Hudson. Germaine asked the subcommittee to recommend a minimum of one delivery driver instead of the current requirement for two. She explained that she is concerned about the general viability of the delivery license from a profitability standpoint if overhead operating costs are not reduced. Germaine also advocated for the ability for delivery companies to deliver to commercial lodging.

Chris Fevry, co-founder and CEO of cannabis courier Your Green Package, centered his testimony around eliminating the need for two drivers in a delivery vehicle. Fevry told the subcommittee that employees are more likely to get into a car accident than be robbed. He said that the Commission has created a license type exclusively for equity businesses with rules that make the whole thing, “designed to fail.” He hopes that with one driver per vehicle delivery businesses can build the a sustainable business.

Find out more by watching the Market Participation Subcommittee meeting here: