SFGATE转发了
California's biggest pot companies are falling like dominoes: MedMen, Herbl, FlowKana, Statehouse, and now... Eaze. California's largest delivery service is shutting down, with Eaze laying off 500 workers and ceasing operations by the end of the year. Jim Araby told me it should be considered yet another "warning sign" for California's lawmakers of the?“continuing dysfunction”?inside the state's legal cannabis market. “This closure and the fact that almost 500 union jobs are going to be lost in the cannabis industry should be a wake up call to the state legislators and the government that more action needs to be taken,” Araby said. https://lnkd.in/gGbQW3Ci
I would say, there is a more specific thematic articulation on this cohort of businesses beyond just being California companies.
Cannabis 1.0
Do we need law makers help…ya? But Eaze, Statehouse, Flow Kana, Herbal they all did it to themselves with the way they chose to operate, the salaries they chose to pay people and the long long leash they gave some of their vendors / partners.
Yes, the structure of CA's regulation has its issues, like mandated 3rd party distribution, potency caps, poorly designed and effectively purposeless track & trace, environmentally unfriendly packaging requirements and inconsistent enforcement / oversight. However, the larger issue is that there are just not enough jurisdictions fairly licensing retail storefronts. We have retailers competing for crumbs in saturated cities while almost 80% of the state lacks safe access to retail locations. There's just not enough being done by the state to incentivize prohibitionist jurisdictions to make a change in their stances. We had a better chance of forcing their hand when safe access to cannabis was framed as a medical necessity. The harsh truth is that entities like HdL and law enforcement are just better are scaring localities into continuing being too afraid to embrace cannabis while California and activists, which is what we used to be, aren't doing enough to inspire them.
Cannadescent is missing from your list…but, yeah, too late to save castles built on sand, sadly workers suffer most, while the c suite shenanigan folks are just moving around the country looking to get more investment support & touting themselves as ‘industry leaders’ all while still, 5-10 yrs later for most of them, not producing a stick of decent weed that sold for profit yet…
The bigger they come, the harder they fall. It takes skill, passion, and - some say - luck to be successful in this life. Some are in it for the fly-by-night quick buck and lots of talk. It takes a lot to navigate when there are so many in it for the fly-by-night quick bucks, but this shake-out will hopefully reveal who is really in it for the passion, who are letting their employees show their skills, and steer through some bare knuckle moments. It's an exciting time. Nothing is done. Nobody is safe, which means anyone who applies themselves - with some luck - has a chance to make a difference.
Who would have ever thought that spamming and sending 30 texts a week to customers and not allowing people to unsubscribe wasn't a winning business model.
?“continuing dysfunction” is definitely why the black market is thriving imo. tons of HASH vendors at the recent puffcon event were unregulated black market brands marketing themselves, and they are thriving ! NOBODY wants to pay 35% to the state so they can mismanage it. Small batch black market hash brands are king right now thanks to the terrible regulation on cannabis in California, especially from the growers side it's an absolute failure. Bigger margins need to go to the growers and operations side of things, not to a group of kleptocratic state regulators, but what do I know hah. These regulators sure need to start proving otherwise.
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1 周Yawn. EASE was a dumb "fake it til you make it" idea from the get go. Door Dash for Cannabis only? Unsustainable. C-Suite executives made millions while investors and workers got burned. Familiar story. Greed kills. There is certainly a market for Cannabis delivery, but as part of a broader service, not a pure play.