shutterstock_162095042With the nationwide trend towards the legalization of marijuana, the cannabis industry is expected to hit hundreds of billions in revenues in the next few years. In comparison to other industries such as the alcohol industry, the projected explosive growth in marijuana can be attributed to the changing societal attitudes as well as technological innovation and discovery. A Look Into On-Demand Cannabis Delivery   Over the past one decade, the promise of “on demand” has stimulated enormous growth in the technology industry prompting startups to come up with new and well-established methods of selling marijuana. One such method is the use of on-demand delivery apps where you can order your cannabis online for delivery in under an hour. Interestingly, most of these technology platforms do not sell or ship marijuana but instead connect consumers to licensed retailers who deliver the order. An example is Eaze. This company connects authentic medical marijuana patients with state-approved dispensaries across the State of California who then fulfills and delivers the order to the customer. Other companies offering on-demand cannabis delivery for both medicinal and recreational use include Speed Weed (California), Marijuana Market (Nationwide deliveries) and Trees (San Francisco) among others. Opportunities and Risks for On-Demand Cannabis With cannabusiness opening up all sorts of economic opportunities: dispensaries, jobs, agricultural opportunities, medical practices, and the development of new technology, most entrepreneurs in the business of delivering cannabis still face significant risks. Of course, the one big risk that is associated with the cannabis industry is the fact that, in the eyes of the federal government, marijuana is still illegal. This and the fear of prosecution has managed to keep major stakeholders such as financial institutions and other business service providers away from any marijuana-related business regardless of whether it is properly licensed. As a result, many of the businesses are forced to operate on cash only basis since they cannot access bank accounts. This not only becomes logistically difficult but dangerous. In addition to financial barriers and risks, the tax rate is another noteworthy challenge in the marijuana industry. Based on IRS Code 280E, any enterprise that moves controlled substances is not entitled to any tax deductions such as salaries or mortgage. For those interested in venturing into the cannabis business it is important to note that the marijuana industry is rife with opportunities, risks, and frustrations. However, as new rules and regulations continue to be re-addressed and amended the future for cannabis entrepreneurs remains bright.

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