Talking points: Green Dragon exec Alex Levine
It’s been quite a year for Colorado-based retailer Green Dragon. After achieving 39% growth in 2020, it announced an expansion into Florida. Then in August, delivery giant Eaze, said it would acquire Green Dragon for undisclosed terms. The combined company will have a presence in the country’s four largest markets: California, Colorado, Michigan and Florida..
WeedWeek caught up with Green Dragon co-founder and Chief Development Officer Alex Levine at MJBizCon. Here are a few of his insights.
On the Eaze deal:
- Delivery is becoming the final frontier for cannabis — and for other retailers. “[Consumers] have spoken, delivery is what is driving everything.” Green Dragon was looking for someone who’s really good at delivery. Eaze was looking for expertise in retail, manufacturing and cultivation. “It was a purpose fit.”
- Levine said the combined company of Eaze and Green Dragon is profitable.
- “Delivery is really difficult in any sector, in cannabis it’s darn near impossible.”
- He said even Amazon basically used delivery as a loss leader for two-decades and in the “hypercompetitive” cannabis market he expects delivery to have the same role. “If you’re only a delivery company, it isn’t a loss leader, you’re just losing money.”
- He noted neither DoorDash nor Uber Eats is profitable.
- Complications such as PotCos’ inability to lease vehicles make it even harder.
- “If you don’t deliver fast, or you don’t delivery well or you don’t do it at the right price point, a lot of time customers will leave and they won’t come back.”