Delivery service Eaze scales back $1bn expansion plans by more than half
There’s no question at all in most minds that the cannabis industry is set for huge growth as legalization continues to roll across the landscape, but company by company, there have definitely been some expected growth explosions that haven’t quite panned out yet. Eaze is a marijuana delivery service based in San Francisco that previously told investors it planned to reach a billion dollars worth of cannabis sales by 2020, but the company’s latest documents (being shown off as it tries to lure in up to $50 million of investor money) say sales will be a bit more conservative than that. Eaze is still planning to see $412 million in sales next year, which is obviously not too shabby for a product that’s technically not yet legal in the US, but that is quite a reduction in plans.
The company’s revenue is definitely growing quickly, from $4.8 million earlier this year to $8.8 million in the most recent quarter, a growth of 83% according to their calculations (we’re bad at math but for all we know, that tracks). But of course it’s spending a whole lot to do that — $13.1 million dollars in that $8m quarter, to be specific.
Still, while we don’t have $50 million dollars to throw at them (we can barely keep this site running — anyone want to throw some of those millions our way for advertising?), we’d imagine Eaze is definitely set for growth in the future. We’ll just have to see, however — the rubber is starting to hit the road in the cannabis industry, so to speak, and while the last few years have been full of lots of hope, hype, and huge projections, it seems like reality is setting in just a bit. Certainly, everybody investing in cannabis is expecting to make money (except us — we’re just here for the snarky comments, apparently), but exactly how much money they’ll make is yet to be determined.