Trying to stay competitive against rival companies in states with marijuana legalization, licensed producers are looking to the prevalence of delivery apps such as DoorDash, UbearEats, and Grubhub for inspiration.
This morning MedMen Enterprises Inc. (CSE: MMEN; OTCQX: MMNFF) officially launched a cannabis delivery service, which is now up and running statewide in California.
Customer orders are taken online and will take place during normal business hours from the company’s 17 California-based dispensaries, with more than 400 products available for same-day delivery service.
Discussing the addition of the new service, Chief Executive Officer Adam Bierman had this to say:
While currently only available in a single state, MedMen is eyeing the possibility of rolling out same-day cannabis delivery services to other states in the near future.
In addition to the delivery launch, the company recently rolled out a loyalty program for 14 dispensary locations across California, Arizona, and Florida geared at bringing back repeat customers. That latter state has been a focus on expansion for the company in recent months, with plans in the works for 12 new locations.
Despite wide name recognition, MedMen stock has followed a clear downward pattern plaguing many larger producers in the North American cannabis industry, currently sitting at a price of $2.05 a share – down significantly from a high of $6.88 last year.
Part of that downward trend is due to consistent losses and a constant danger of running out of cash that has been repeatedly staved off through large fundraising tranches.
Including pending acquisitions, the company will soon be licensed for more than 90 locations nationwide, although that large number of potential dispensary sites hasn’t translated to an influx of revenue.
In an effort to turn around the downward trend, MedMen recently began an internal campaign aimed at reducing corporate selling, general & administrative expenses by 30%. Those efforts will include strategic employee reductions as well as eliminating overhead by culling out various non-core functions in daily company operations.