As the Canadian cannabis industry adapts to constantly changing regulations in Ontario amid the COVID-19 pandemic, retailers have been forced to play catch-up to implement curbside pick-up and delivery options – previously banned in Canada. This has left many legal retailers excluded from the market, basically due to a lack of infrastructure to meet the new mandates from the government.
But, as an increasing number of retailers like Dutchie and Calivaimplement contactless payment options, a return to something similar to normalcy leans out in the horizon.
In its latest move in Canada, Dutchie, the online cannabis marketplace backed by the VC firms of Snoop Dogg and basketball superstar, Kevin Durant, as well as Gron Ventures, will be helping Canopy Growth (CGC), one of the largest cannabis companies in the world, implement these payment solutions among one of its top brands.
According to information procured exclusively, Dutchie and Canopy’s Tokyo Smoke are launching a new, tech-enabled, contactless curbside pick-up and delivery solution that will help keep Ontario’s cannabis retailers compliant and safe.
In an exclusive conversation, Luke Doherty, director of retail solutions and infrastructure at Canopy Growth, said, “On March 24, the province of Ontario deemed the cannabis industry as an essential service. In response, we worked with Dutchie’s team to quickly adapt and evolve our services to allow Tokyo Smoke stores across Ontario to continue safely serving their communities.”
Adding to these comments, Zach Lipson, co-founder and chief product officer at Dutchie noted the pandemic has changed everything for cannabis retail.
“It has forced a massive shift in how cannabis is sold. Prior to the pandemic online ordering accounted for a smaller percentage of sales, yet today retailers are seeing a majority of their sales coming from online orders. Using Dutchie, and features like curbside pickup and online payments, retailers are able to offer a convenient, and most importantly safe, experience for their customers and staff.”
Lipson noted this partnership with Canopy Growth, “bring that same level of quality” Tokyo Smoke has accustomed its customers to, to its online experience.
Customers can browse the retailer’s menu, with inventory synced in real-time; pay online with their credit cards; and either pick up their order curbside or have it delivered within minutes, he explained.
“The regulatory environment for cannabis is always challenging, but in Ontario, the landscape was developing practically minute-to-minute. We worked closely with the Canopy team and were able to have them up and running, offering online ordering in record time. The results have been impressive, average order sizes are up significantly, and feedback has been extremely positive.”
Above And Beyond
According to management, Dutchie is also helping Ontario-based retailer Sessions launch a similar solution.
Even though retailers were allowed to re-open on 5/19, many workers and consumers still prefer curbside pick-up and delivery options to protect their health and safety. In just a short time since implementation, Dutchie has seen average order sizes through the platform go way up. The company is helping retailers create higher order volume, and is seeing 30% larger orders when they are placed online, compared to in-store purchases.
There remains an open question on whether Ontario will move to permanently allow curbside pickup and delivery orders given the early success with customers and retailers. With COVID-19, and the safety concerns that come with it, many customers and businesses alike would prefer to have these purchasing options available in the future. The ground appears to be moving, as officials in B.C. are now discussing publicly their openness to allowing online sales.
By means of conclusion, Lipson said he’s “hopeful that as regulators look to the future and determine how the cannabis space will be governed beyond the pandemic, that this partnership can serve as a prime example of how technology can be leveraged to not only create a more convenient experience, but a safer one as well.”
