Adapting to Change: Long Island City Dispensaries Navigate the Rise of Delivery Services

When Long Island City dispensary NYCBUD introduced delivery sales earlier this year, owner Jonpaul Pezzo anticipated an immediate surge in demand. However, the reality has been more gradual. “It was really nothing for the first week and a half,” Pezzo admitted. But as they fine-tune their operations, delivery sales are slowly gaining momentum, constituting about 5% of NYCBUD’s revenue currently.

Rise of Delivery Services

The COVID-19 pandemic has accelerated consumer comfort with online purchases, including cannabis. Onfleet, a cannabis delivery management software provider, reports a 300% increase in cannabis deliveries since the pandemic’s onset. This trend reflects a broader shift towards online retail across various industries.

Delivery Dynamics and Challenges

NYCBUD’s delivery range spans a five-mile radius, primarily servicing Queens and parts of Brooklyn. Yet, despite the potential, complex payment systems remain a hurdle. Complicated payment procedures, especially for older customers unfamiliar with online transactions, pose challenges to the seamless adoption of delivery services.

Expanding Reach and Customer

 Base Dispensaries like VERDI Cannabis and Happy Days are also venturing into delivery services to cater to evolving consumer preferences. With a focus on convenience and customer experience, dispensaries aim to win over customers from legacy delivery services and illicit markets.

Strategic Outlook

As dispensaries adapt to meet delivery demands, they anticipate a significant share of revenue coming from online sales. With strategic expansions and enhancements in service quality, dispensaries in Long Island City and beyond are navigating the changing cannabis retail landscape with resilience and innovation.