Rise and Fall of Eaze and other Pop-up Cannabis delivery services

Rise and Fall of Eaze and other Pop-up Cannabis delivery services

Introduction

Dubbed as “the Amazon of cannabis,” Eaze has made waves in the cannabis delivery industry. However, recent events have shed light on the challenges faced by the company, impacting both workers and customers. In this blog post, we’ll explore why Norcanna Cannabis Delivery sets itself apart from Eaze and the many clones of these “newly-minted, pop-up, today-gone-tomorrow” delivery services that are focused on making a quick buck.

The Un-Eaze Experience

Delivery isn’t new, and Eaze’s big corporate take on cannabis delivery is just that: big corporate. It has displaced smaller, locally-run companies like Norcanna Delivery. Eaze is currently facing foreclosure and is expected to be out of operation by the end of the year, according to reports from GMD. We suspect that Eaze will leave brands high and dry without payment. Are big corporations the way to go? We think not.

The Unionization and Pay Cuts

Eaze workers recently unionized, seeking fair wages, benefits, and better working conditions. The conflict escalated when the company implemented pay cuts following the unionization. The United Food and Commercial Workers Union (UFCW) now represents over 500 workers across 11 California delivery depots.

  • Negotiations between Eaze and the union began in August 2023 but paused in March 2024.
  • Workers’ demands included increased mileage reimbursement rates, higher hourly wages, and a guaranteed minimum number of work hours.
  • Charges were filed against Eaze and its subsidiary, Stachs, with the National Labor Relations Board, alleging changes to drivers’ mileage reimbursement and failure to provide legally required information.

The Looming Strike Threat

As the so-called “Pot Holiday” (April 20) approaches, cannabis industry workers represented by the UFCW are considering a strike. The strategically chosen date could significantly impact Eaze’s finances. The company’s recent trajectory has been fraught with difficulties:

  • Former CEO James Patterson pleaded guilty to conspiracy to commit bank fraud in 2021.
  • Eaze faces a lawsuit from its merged associate, Green Dragon, alleging intentional misleading of investors and violations of California law.

Regulatory Challenges

Eaze’s ambitious growth strategy aligns with the rising demand for cannabis delivery, fueled by increasing acceptance and legalization. However, the evolving regulatory landscape presents challenges. Companies like Eaze must adapt to changing regulations while addressing labor issues to maintain a sustainable and ethical business model.

The decision to unionize reflects a broader trend among cannabis industry workers seeking to protect their rights and advocate for better working conditions. As the cannabis delivery industry continues to grow, addressing labor concerns will be crucial for maintaining a positive reputation and sustainable practices.

Conclusion

Eaze’s journey from convenience to controversy highlights the delicate balance between business expansion, labor rights, and customer satisfaction. As the cannabis industry evolves, companies like Eaze and Humbleroot must navigate these challenges to ensure a successful and responsible future.

Meanwhile, Norcanna Farms Delivery has been delivering cannabis in El Dorado Hills, Cameron Park, Placerville, and Hangtown since 2008. We are local, and we deliver here!

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