Massachusetts cannabis delivery companies are seeing demand, but say one issue is getting in the way of profitability

Regulations from the state Cannabis Control Commission require there to be two drivers in cannabis delivery vehicles. The drivers must also wear body cameras and the vehicle must be outfitted with GPS.

 

That rule is the biggest challenge to reaching profitability, Fevry said.

 

“My hope is that there are some changes that are made that make the industry a bit more balanced, a bit more equitable,” Fevry said. “There needs to be a balance between regulations and actual business operations and things that are happening on the ground.”

 

Gabe Salazar, the founder of We Can Deliver, also feels that he’s been hit hard by the rule.

 

“It’s not equitable for us as a delivery company but it’s also not equitable for the drivers,” Salazar said. “If one driver calls out that means another can’t work.”

 

The costs of having two drivers in one car add up on top of federal 280E taxes the 3% host community fee, Salazar said.

 

Salazar, who also does alcohol delivery in Greater Boston, agrees with Fevry that reducing the number of drivers for cannabis delivery would help the companies on the path to becoming profitable.

 

Home delivery of recreational cannabis started this year in Massachusetts with two different license types, which are each exclusively available to equity applicants for three years.

 

Commissioner Ava Callender Concepcion, who holds the public safety seat on the CCC, praised Massachusetts for being one of the first states in the U.S. to develop and effectuate regulations for home delivery.

 

“I’m proud of the regulations that we’ve established thus far because they aim to both increase access and equity in the industry while also upholding the Commission’s commitment to public safety. I want to ensure that this part of the industry thrives, especially considering the three-year exclusivity period given to equity applicants for this license type,” Concepcion said in a written statement. “That said, my goal as a Commissioner is to continue to let these regulations breathe and gather important, necessary feedback from our constituents about what they feel is working or where challenges may exist. The Commission has shown in the past that it is open to hearing feedback and revisiting its regulations if needed. I look forward to hearing from our constituents as we continue to watch this part of the industry grow.”

 

Salazar said his company is barely breaking even because the operating costs are so high.

 

Salazar said he tried talking with commissioners about the issue and has applied for a waiver. Fevry also has talked with commissioners, he said, and they’ve all been receptive to hearing about the issue.

Safety is a factor that played into having two drivers in each vehicle.

 

“If they rob us, there’s insurance,” Salazer said, noting that the car also has GPS and drivers wear body cameras. Salazar added that he’s been delivering medical cannabis since March and has had no problems pop up.

 

Fevry said there have been no issues with Your Green Package’s deliveries.

 

“When anything’s being done that’s new, there’s a fear of the unknown, but I think through our operations, through what we’ve done, we’ve proven that this can be done safely,” he said. “There’s also a multitude of other security provisions like the body cameras, the GPS tracking of the cars, the cameras watching the drivers, watching the vehicles.”

 

While there are other challenges, like some towns that have opted to ban cannabis delivery, Fevry said he feels the driver issue is the biggest hurdle.

 

Both Fevry and Salazar said addressing the two driver regulation would also allow them to pay drivers more. Fevry said his drivers make $15 an hour, while Salazar pays $15 to $18 an hour based on experience.

 

“People depend on me. These are my drivers’ full-time jobs,” Salazar said.