Cannabis Deliveries Ramping Up in Chico

One Retailer in the City of Shasta Lake has already been delivering to Chico for over a month.

Posted: Feb 22, 2019 6:47 PM

State regulators have cleared the way for marijuana deliveries all across California.

Deliveries are now allowed even in cities that do not allow recreational sales including cities like Chico and Oroville which have opted out the retail market.

Queen of Dragons, a cannabis retailer in the City of Shasta Lake is one of the only local retailers at this time to offer a home delivery service.

And they're taking advantage of so-called pot-deserts where people don't have access to retail cannabis storefronts.

“So the whole model changed January 1 with the state regulations and then the permanent regulations went into effect January 17,” Queen of Dragons compliance officer Mai Vue said. “And so we didn't want to do anything until we knew for sure what the permanent regulations are. So we turned it on about a month ago delivering outside of our area.”

They say they have been making deliveries for about a month now and there is a slew of regulations they have to follow in order to be compliant with the law.

“So just off the top of my head, they're employees of Queen of Dragons,” Vue said. “They have to do daily pickups and daily drop-offs. There's a certain limit they can carry on them that's already placed and then a certain amount that they can actually carry with them that the order hasn't been placed yet that they can sell throughout the day.”

In addition to that, drivers can only carry a maximum of $5,000 worth of cannabis at any time.

And their vehicles must be free of any markings or logos related to cannabis to ensure delivery vehicles aren’t targets for would-be thieves

Officials think the new laws will ultimately help cannabis retailers compete with the black market, especially in so-called pot deserts where people rely on illicit dealers who make house calls.

Last year, cannabis retailers generated nearly 600-thousand dollars for the City of Shasta Lake.

And while they say it's too early to tell just how successful delivery sales have been, they already make up a fair percentage of their daily sales.

“I know that delivery takes about 20 percent of our daily sales today,” Vue said. “In the beginning, it was not that of course, but just in the last month, it's been about 20 percent of our daily sales.”

If Queen of Dragons' delivery sales hold at 20 percent, it could mean about $50,000 a year in additional revenue for the city.

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