INSUBCONTINENT EXCLUSIVE:
$75 million-funded weed brand empire Caliva has dropped Eaze in favor of launching its own delivery system.By partnering with Hypur banking
to solve the marijuana payments legality issue, Caliva will be able to accept contactless mobile payments unlike Eaze that it claims usually
requires customers pay in cash
[Update: Eaze claims the majority of payments come via debit cards]
will boost their average order volume
Combined with verticalizing delivery in-house plus its retail and wholesale operations, Caliva hopes it can grow its margins and survive
unannounced layoffs and executive departures
It burned cash on billboards, and never launched the services of a startup it acquired
There were questions about data security, and weed brands dropped Eaze due to delayed payments
It was almost out of money and in danger of vaporizing
It luckily managed to secure a $15 million bridge round to keep it alive plus a $20 million Series D in February just before the COVID hit
the fan, though I dread to think of the terms of that funding.The plan for Eaze was to verticalize, buying and developing brands that it
could sell through its existing delivery service to up its margins
well as distribute other vape, edible, and flower brands like Dosist and Kiva
Its menu breadth to attract customers and in-house brands to drive profits could be a winning combo
After limited pilots in SoCal, Caliva delivery is launching in LA and the Bay Area.Unfortunately, traditional payment processors usually
refuse to work with marijuana companies for fear of legal repercussions
Others like CanPay only offer ACH transfers, while Square only works with CBD sellers
tough headwinds with shelter-in-place orders in effect in states where marijuana is legal
overshadowed by an estimated $8.7 billion in illegal sales
Faster delivery and simpler payments could help
But enthusiasm for the industry has dwindled following the initial flood of entrants sought to exploit the end of prohibition
