It’s a brutal time for marijuana startups. I’m hearing some are raising at 1/5th of their 2019 valuation amidst rampant competition, tall taxes, and slow legalization. The struggles for marijuana’s best-known startup, delivery service Eaze, continue as today it’s losing one of its top partners. $75 million-funded weed brand empire Caliva has dropped Eaze in favor of launching its own delivery system.

By partnering with Hypur banking to solve the marijuana payments legality issue, Caliva will be able to accept contactless mobile payments unlike Eaze that it claims usually requires customers pay in cash. [Update: Eaze claims the majority of payments come via debit cards]. Caliva buyers won’t have to worry about trips to the ATM, especially now during COVID-19 shelter-in-place orders, which the startup expects will boost their average order volume. Combined with verticalizing delivery in-house plus its retail and wholesale operations, Caliva hopes it can grow its margins and survive this long winter for weed startups.

“Our mission at Caliva has always been to provide safe and easy access to plant-based solutions for health, happiness and healing,” said Caliva CEO Dennis O’Malley. “Together with Hypur, we are proud to offer our customers safe, compliant and convenient cashless payment options to improve and modernize their purchasing experience.” It hasn’t been so easy for Eaze, though.

Back in January, we reported that Eaze was in trouble, having suffered unannounced layoffs and executive departures. It burned cash on billboards, and never launched the services of a startup it acquired. There were questions about data security, and weed brands dropped Eaze due to delayed payments. It was almost out of money and in danger of vaporizing. It luckily managed to secure a $15 million bridge round to keep it alive plus a $20 million Series D in February just before the COVID hit the fan, though I dread to think of the terms of that funding.

The plan for Eaze was to verticalize, buying and developing brands that it could sell through its existing delivery service to up its margins. Now it’s seeing former partner Caliva do the reverse, launching a delivery service to sell its own Fun Uncle, Deli, and Caliva brands as well as distribute other vape, edible, and flower brands like Dosist and Kiva. Its menu breadth to attract customers and in-house brands to drive profits could be a winning combo. After limited pilots in SoCal, Caliva delivery is launching in LA and the Bay Area.

Unfortunately, traditional payment processors usually refuse to work with marijuana companies for fear of legal repercussions. That’s why most delivery services can’t accept credit or debit cards, or do so through sketchy legal workarounds that have led payment providers to be sued. Others like CanPay only offer ACH transfers, while Square only works with CBD sellers. “We spent time researching and evaluating all platforms that accept cannabis payments in the U.S., and found that Hypur has the best security, compliance and consumer experience” O’Malley tells me.

400-person Caliva is now trying to raise a Series B, but may experience tough headwinds with shelter-in-place orders in effect in states where marijuana is legal. Stiff taxes on marijuana have meanwhile helped the black market continue to thrive, as California’s $3.1 billion in legal 2019 sales were overshadowed by an estimated $8.7 billion in illegal sales. Faster delivery and simpler payments could help. But enthusiasm for the industry has dwindled following the initial flood of entrants sought to exploit the end of prohibition. Is the Green Rush over?



Source link

129 COMMENTS

  1. Have you ever thought about including a little bit more than just your articles? I mean, what you say is valuable and all. But think about if you added some great visuals or video clips to give your posts more, “pop”! Your content is excellent but with images and clips, this blog could undeniably be one of the best in its field. Superb blog!|

  2. Wow that was strange. I just wrote an really long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say superb blog!|

  3. Hello! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this post to him. Fairly certain he will have a good read. Thanks for sharing!|

  4. After checking out a few of the blog articles on your web site, I really like your technique of writing a blog. I book-marked it to my bookmark website list and will be checking back in the near future. Please visit my web site as well and let me know how you feel.|

  5. What’s up to every body, it’s my first pay a quick visit of this web site; this blog contains remarkable and in fact excellent stuff in support of visitors.|

  6. Hey there would you mind letting me know which web host you’re using? I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot faster then most. Can you suggest a good hosting provider at a reasonable price? Many thanks, I appreciate it!|

  7. Hi there, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam remarks? If so how do you stop it, any plugin or anything you can advise? I get so much lately it’s driving me mad so any help is very much appreciated.|

  8. Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.|

  9. hello there and thank you for your info – I have definitely picked up anything new from right here. I did however expertise a few technical issues using this web site, since I experienced to reload the site lots of times previous to I could get it to load properly. I had been wondering if your web host is OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and can damage your high-quality score if ads and marketing with Adwords. Anyway I’m adding this RSS to my e-mail and could look out for much more of your respective fascinating content. Ensure that you update this again soon.|

  10. I like the helpful information you provide in your articles. I’ll bookmark your blog and check again here frequently. I’m quite certain I will learn many new stuff right here! Good luck for the next!|

  11. of course like your web-site but you have to take a look at the spelling on several of your posts. A number of them are rife with spelling problems and I in finding it very troublesome to inform the reality nevertheless I’ll surely come again again.|

  12. I blog often and I genuinely appreciate your content. The article has really peaked my interest.
    I am going to take a note of your website and keep checking for new information about once per week.
    I subscribed to your Feed too.

  13. Hello there! I could have sworn I’ve visited this blog before but after browsing through some of the posts I realized it’s new to me. Regardless, I’m definitely delighted I found it and I’ll be book-marking it and checking back often!|

  14. I’ve learn some excellent stuff here. Certainly worth bookmarking for revisiting. I surprise how a lot effort you put to make this type of fantastic informative website.|

  15. When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several emails with the same comment. Is there any way you can remove people from that service? Thanks!|

  16. Hi, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam remarks? If so how do you stop it, any plugin or anything you can recommend? I get so much lately it’s driving me crazy so any support is very much appreciated.|

  17. This is really interesting, You are a very skilled blogger. I’ve joined your feed and look forward to seeking more of your wonderful post. Also, I have shared your web site in my social networks!|

  18. I really like your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you? Plz respond as I’m looking to create my own blog and would like to find out where u got this from. kudos|

  19. This is very interesting, You are a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your excellent post. Also, I’ve shared your site in my social networks!|

  20. We’re a group of volunteers and starting a new scheme in our community.
    Your site provided us with valuable information to work on. You’ve done a
    formidable job and our entire community will be grateful to you.

  21. Someone essentially lend a hand to make significantly articles I might state. This is the very first time I frequented your website page and up to now? I amazed with the research you made to create this actual publish amazing. Excellent process!|

  22. I’ve been browsing online more than 2 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all website owners and bloggers made good content as you did, the internet will be a lot more useful than ever before.|

  23. Very good blog! Do you have any recommendations for aspiring writers? I’m planning to start my own website soon but I’m a little lost on everything. Would you advise starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m completely overwhelmed .. Any recommendations? Appreciate it!|

  24. I was recommended this website through my cousin. I am not sure whether or not this put up is written by way of him as nobody else recognize such exact about my trouble. You are incredible! Thank you!|

  25. What i do not understood is in fact how you’re not really a lot more smartly-preferred than you might be now. You’re very intelligent. You know thus significantly in the case of this topic, made me individually consider it from a lot of numerous angles. Its like men and women don’t seem to be involved until it’s one thing to accomplish with Lady gaga! Your individual stuffs nice. All the time maintain it up!|

  26. Have you ever thought about adding a little bit more than just your articles? I mean, what you say is valuable and all. But think about if you added some great visuals or video clips to give your posts more, “pop”! Your content is excellent but with images and videos, this site could certainly be one of the greatest in its niche. Great blog!|

  27. Have you ever considered creating an ebook or guest authoring on other blogs? I have a blog based on the same ideas you discuss and would love to have you share some stories/information. I know my visitors would value your work. If you’re even remotely interested, feel free to send me an e-mail.|

  28. I keep listening to the news broadcast lecture about getting boundless online grant applications so I have been looking around for the top site to get one. Could you advise me please, where could i find some?

  29. Just wish to say your article is as amazing. The clearness in your publish is simply cool and i can suppose you’re an expert in this subject. Well together with your permission allow me to seize your feed to keep up to date with impending post. Thanks a million and please carry on the gratifying work.

  30. Excellent post. I was checking continuously this blog and I’m inspired! Very helpful information specifically the ultimate section 🙂 I handle such information a lot. I used to be looking for this particular information for a long time. Thanks and best of luck.

  31. It is the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I desire to suggest you some interesting things or advice. Maybe you could write next articles referring to this article. I desire to read more things about it!|

  32. Woah! I’m really digging the template/theme of this website. It’s simple, yet effective. A lot of times it’s hard to get that “perfect balance” between user friendliness and visual appearance. I must say you have done a excellent job with this. Additionally, the blog loads extremely quick for me on Opera. Excellent Blog!|

  33. Hello There. I discovered your blog the usage of msn. This is a very neatly written article. I’ll make sure to bookmark it and come back to read more of your helpful info. Thank you for the post. I will definitely comeback.

  34. you are in reality a excellent webmaster. The web site loading speed is incredible. It sort of feels that you’re doing any unique trick. Furthermore, The contents are masterpiece. you’ve performed a excellent job in this subject!|

  35. We still can not quite think that I could become one of those reading the important suggestions found on your web blog. My family and I are really thankful for the generosity and for giving me the potential to pursue my personal chosen career path. Thanks for the important information I got from your blog.

  36. Every weekend i used to pay a quick visit this web page, because i wish for enjoyment, since this this website conations in fact pleasant funny stuff too.|

  37. Hey there! Someone in my Myspace group shared this site with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Excellent blog and great design and style.|

  38. I absolutely love your blog and find a lot of your post’s to be what precisely I’m looking for. Do you offer guest writers to write content in your case? I wouldn’t mind creating a post or elaborating on some of the subjects you write about here. Again, awesome web site!|

  39. Hi, I do think this is a great site. I stumbledupon it 😉 I will revisit once again since I bookmarked it. Money and freedom is the best way to change, may you be rich and continue to help other people.|

  40. Hi, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam feedback? If so how do you stop it, any plugin or anything you can advise? I get so much lately it’s driving me crazy so any help is very much appreciated.|

  41. Hi, I do think this is an excellent website. I stumbledupon it 😉 I’m going to come back once again since I saved as a favorite it. Money and freedom is the greatest way to change, may you be rich and continue to help other people.|

  42. Its such as you read my thoughts! You appear to know so much about this, such as you wrote the book in it or something. I think that you could do with some to drive the message home a bit, however other than that, this is fantastic blog. A great read. I’ll certainly be back.|

  43. Greetings from Carolina! I’m bored at work so I decided to browse your site on my iphone during lunch break. I enjoy the knowledge you provide here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyways, awesome site!|

  44. Hi, I do think this is a great website. I stumbledupon it 😉 I may revisit once again since I book-marked it. Money and freedom is the greatest way to change, may you be rich and continue to help other people.|

LEAVE A REPLY

Please enter your comment!
Please enter your name here