The legal cannabis market is poised to reach USD 90.4 billion by 2026, at a CAGR of 28%. The market size driven by the two primary reasons – legalization of marijuana and growing medical applications – has grown to reach a point where it’s not just the consumer base that is rising but also the market players.
The revenue graph that the Cannabis market is generating is enough for entrepreneurs to look into the domain as a prospective industry to invest in for high profit.
Also, the use of technology is transforming the cannabis industry into a whole new section.
Now before we look into the features, development cost of cannabis delivery app, and ways to establish the business in this domain, let us first look into the market space of cannabis.
The growth in market size that legalized cannabis is witnessing is first backed by the count of countries that have now opened up to the idea of legal marijuana and the secondary because of the strong factual belief that more and more countries will soon be joining the list.
On that note, let us look at the places where dealing in marijuana or cannabis is legal.
As you can see in the map above, the areas where cannabis is legalized at the current time, are fairly restricted. However, the number of countries now opening up to the idea of legalizing marijuana is slowly increasing. With this, the number of players entering this domain is also increasing.
Market Players of the Cannabis Delivery App Sector
All these top players are working in one or the other business model. While it is up to you which model you wish to expand your business in, there are three commonly used business models that brands generally venture into. So, without further ado, let’s dive into the popular business models.
Business Models for On-demand Cannabis Delivery App Development
With the ideal business model, you can acquire maximum profit from cannabis delivery application development. This is the reason why it is so important to opt for the business model that suits your needs the best. Here is the list of the three best business models that you can implement to get started with the online cannabis delivery business.
1. Delivery Specific
Under this business model, you can focus your energy on simply being a delivery partner. You can work around the delivery of orders made and items delivered. In return, you can take a commission on every fulfilled order.
2. Single Store Startup
Here, you can start your own store and also keep the delivery part under your forte. This way, you will earn from both the store and the delivery charges, while expanding your business capabilities.
3. Aggregator Startup
Like Amazon and eBay, you can start your business as an aggregator that brings stores and customers in one place. So, your role would be to manage the order and delivery of cannabis along with managing the groundwork recording of inventory that stores have.
Now that we have discussed the key business models to successfully launch a legal cannabis delivery business, let’s go through the list of crucial features that should be present in your application.
Key Features that Should be Present in Your Cannabis Delivery App
When you develop an app for cannabis delivery, you invest in not one but four application versions, as your on-demand cannabis delivery app development company would tell you. So, let us look at the versions individually.
Your app must allow users to first register and sign up for your app. Next, the user should be able to search for products, read product details, set delivery dates and addresses, place an order, and pay online. Thus, from a buyer’s perspective, the app must include the following features:
The registration process should be easy to follow for a customer. While they should not be asked to follow multiple lengthy processes to enter a mobile app, they should also not be allowed to sign up without a proper identity and age check. A basic form asking for the name, email id, age, etc., can come in very handy. Users can also verify their identity via ID and upload their doctor’s receipt for medical marijuana.
Along with giving the option of selecting a product from a wide range of offerings in the application, you should give your users the facility to easily search for the required product through product sorting, filter, and search bar.
Multiple Payment Options
You should integrate multiple modes of payment in your cannabis delivery application. By integrating a payment gateway into the app, you make the transaction safe and convenient for the users. While making payment through debit card, credit card, and PayPal will be a good must-have, it is cash on delivery that you should most definitely add as a mode of payment in the application. Read a few crucial factors to consider when adding a payment gateway to your application.
Customers should be given the facility to schedule the delivery of cannabis at their preferred time and availability.
You should make use of APIs to give live tracking functionality to the customers. They should, at any given point in time, have a clear idea of where their order has reached. And in case, the delivery is being made through a dispensary that is in the same location as that of the customer, you can also think about offering them a live tracking option.
Since most of the orders that are made under a legal jurisdiction are meant for medical purposes, there is a high possibility that the customers would demand it again. Thus, a reordering feature will be of immense help here.
Customers should be given a separate section to manage their profiles, select the mode of payment, add and edit addresses, work around the app notification, etc. This will simply, to make the app journey easier for users.
Feedback and Rating
The sign of any good service is the rating and review that it gets. And you would only be able to judge how well your service is getting accepted in the market after you give a rating and feedback option to the customers to rate the product that they are getting. It will also give your platform more credibility and allow users to share their delivery experience as well, leading to an enhanced customer experience.
Store Manager App
A store manager app includes features such as the profile of sellers, the name and address of stores, a help and support system, and more. The app also prevents illegal activities as merchants are required to upload their legal licenses for cannabis distribution before dealing with such services. Some of the main features added in a store manager app are listed below:
A store profile should contain a series of information about the store/dispensary. Information like – address, the name of the owner, contact info, photo of the store, etc. Now, usually, businesses keep the ability to edit profiles by themselves, but it helps if the store owner handles it on their own.
To list products, merchants should give a detailed product description, upload a photo, and set the product category. Also, dispensary managers should update the status of cannabis availability.
Help and Support
A proper facility should be given to the store manager to contact the application’s admin or parent company in case there is any query or doubts surrounding the service that they are offering.
Before you pass a customer’s order to a specific dispensary, it is important to know if at all the goods are present in the dispensary. Noting this, it is important to have an inventory update feature in the store’s app version so that the manager can update the status of cannabis availability with them.
A driver is a middle man between the buyer and the seller, responsible for delivering the order. Thus, to avoid credibility issues, the delivery person should verify their identity. Only after the admin verifies user documents can the delivery person receive an account. Below are the key features included in the app for drivers:
The drivers should be given the facility to manage their profile and put in information like name, address, upload their identity proof, contact information, etc.
Driver’s application should have a proper GPS integration to show them the route and exact address of the customers and the stores, where they have to make and take the delivery from.
Status of Delivery
Drivers should have the option to update the status of delivery – En Route, Arrived, Order Delivered, Payment Received, etc.
The admin panel helps you oversee the whole operation. There are quite a few essential features that should be there in your admin app, such as:
Admins of the application should be given a dashboard from where they can manage, control, and view the whole activity happening on the platform in real-time.
The feature would allow admins to edit the listings, change the pricing mentioned on the page, remove the listing if fishy, etc.
Administrators should be given the functionality to keep track of all orders made on the application, track their status, and queries related to the order, the payment scenario, etc.
Admins should be given information about the customers, their feedback, and order history so that they are able to analyze and handle the whole reselling engagement process.
Feedback and Reports
Admins should be given complete access to view, comment, and take action on the feedback and customer/stores’ reports and blocks.
Now that we have looked at the marijuana delivery app key features, it is time to answer one of the most crucial questions – What is the cost of cannabis app development.
So, without further ado, let’s get to that!
Medical Cannabis Delivery App Development Cost
As the number of versions in a usual cannabis delivery app is more than other on-demand delivery apps like UberEats, the medical marijuana delivery app-building cost is also higher.
If you are going with the basic features, as mentioned in the article here, the average cost of cannabis delivery app development will come somewhere around USD 40,000 to USD 50,000. But, then again, it is only a rough estimate. There are a number of factors such as the choice of an app development company, type of platform, and features of your app that can increase or lower the final cost to develop an app like Eaze. Make sure to consult reliable app development companies like Appinventiv to get a rough estimate of developing world-class cannabis delivery apps while entering this domain.
Factors that Determine the Cost of Cannabis Delivery Apps
Some of the key factors that affect the cost of building an online cannabis delivery business for different platforms are given below:
Choice of Platform: Before starting with the mobile app development process, it’s important to choose a platform. Depending on your target audience, you can choose to build an iOS, Android, or cross-platform application. If you are a startup with a minimal budget, it’s better to opt for one platform in the initial stages, later on, you can shift to multiple platforms.
Features and Functionalities: The more features and functionalities your cannabis delivery application has, the more expense you need to bear for your app development. So, it is advisable to concentrate only on the core features in the initial version of the app. It will help you offer a great customer experience at affordable costs. As the features advance, the cost entailed in the app development process also increases.
UI and UX: User interface (UI) and user experience (UI) are vital for the success of your cannabis delivery application. UI/UX components such as push notifications, icons, and customization need to be added to your application if you wish to make an impression on your users. A good design will make your users want to use your app more and not drift away from it in the long run. However, this may increase the overall cost of app development.
Choice of App Development Company: The final cost of your app development will also depend on the mobile app development company you choose. A reliable app development company has expertise in multiple domains and offers expert resources to deliver excellent services. While it will add to the outsourcing app development costs, the quality of service will not be compromised and it will definitely speed up the development process.
App maintenance: The work does not end with your app getting launched in the store. There are other additional elements that contribute to the increment in the cost of developing a cannabis delivery app, like app maintenance. Once the app is launched in the market, you need to constantly maintain and update it.
You will have to revamp the app integrations and functionalities as per users’ demands and take efforts to scale your cannabis delivery app business. You will also require regular technical assistance from professional developers to ensure the smooth functioning of your app. This, in turn, leads to an increase in the price of mobile app development.
With everything you need to know to get started with the development of cannabis delivery application, it is now time to part ways by leaving you with at something of value – The ways you can make your business stand out from the others in the industry.
There are little things that your on-demand app development company would tell you to make your application, stand apart from your competitors. Things like:
- Free shipping
- Cybersecurity, sound data management, protection of privacy
- Detailed information of the goods on the application
- Right product categorization
- Multiple delivery options
- Real-time delivery options
- Multiple payment options
Now that you have seen it all, including the cost of cannabis delivery app development and factors affecting it, the next and last thing left for you to do here is to get in touch with our mobile app development team and get started with your app development journey.