Cannabis has yet to be delivered in Denver, and weak demand threatens to put the city’s marginalized entrepreneurs out of business.
why does it matter: In a multi-billion dollar industry control By white men, industry leaders say pot delivery licenses can serve as a path for business owners from diverse backgrounds to break into the highly competitive space.
News leadership: City officials are looking to address the issue by providing exclusive access to marijuana delivery licenses to “applicants for social justiceor business owners deemed to have been disproportionately affected by the war on drugs.
- The proposal, which was paid by the Ministry of Excise and Licensing, would also reduce licensing fees for social equity delivery companies and the retailers they partner with.
- From the note: The move comes as Denver leaders roll out a 10-week social equity and technical assistance training program for aspiring entrepreneurs in the cannabis industry.
playing condition: Since the city launched its website weed delivery program Last year — which requires dispensaries to be served through social equity carriers through July 2024 — nine of Denver’s 206 stores offer the service, tax and licensing spokesperson Eric Escudero tells us.
- With so little work to do, licensed social equity transfer companies face “serious challenges” to avoid going out of business.
- Escudero says at least one delivery company, Mile High Cargo, did not renew its license this year due to a dearth of partners.
Between the lines: Industry experts tell Axios Denver that Mile High City may be too saturated with dispensaries to deliver.
- The truth is that many people would rather have their bowl than pay extra for delivery.
- In addition, many cannabis companies have been reluctant to pursue partnerships due to “exorbitant” permit fees, and many have chosen to wait for the exclusivity period.
Yes, but: Industry insiders overwhelmingly agree that the proposed policy is “creative” and much better than the status quo.
- “Everyone should have a chance to find opportunity in the Colorado cannabis industry. Barriers to entry can be really high — especially for social justice entrepreneurs,” Truman Bradley, CEO of Marijuana Industry Group, told Axios Denver.
what do you want to watch: Axios Denver has learned that Native Roots’ retail medical dispensary on Grant Street has been approved for a delivery permit Thursday.
- This development represents the largest marijuana store by volume to obtain a delivery permit and become eligible for the Social Justice Delivery Partnership.
What’s Next: Escudero said the tax and licensing proposal will be presented to the Denver City Council committee in the coming weeks, and must be approved by the full council.