Two of the fastest growing industries right now in the United States are on-demand technology and cannabis. These two industries are at the epicenter of growth and investors aren’t being shy about their appetite for companies in these arenas. But one company, in particular, has developed a unique business model that services both of these massive growth industries.
Driven Deliveries Inc. (OTC: DRVD) is one of the only publicly traded cannabis delivery service operating in the United States.
Now that’s what we call first mover advantage. Driven Deliveries provides on-demand marijuana delivery in select cities where allowed by law. The service provides the legal cannabis consumer the ability to purchase and receive their marijuana in a fast and convenient manner.
Consumers are growing increasingly lazy with most of all purchases from retail to food shopping being done online. And now you can add weed to that list. Driven Deliveries (OTC: DRVD) is quickly gaining steam in legal US markets as the new delivery option for customers is resulting in increased revenue and transactions for dispensaries.
Food delivery apps and services such as GrubHub and Uber Eats have already expanded revenue generated in the food-service industry by 22% or more. Consumers love getting what they want without having to leave their house to get it, plain and simple.
Investors are Starving for this Tech
Investors’ appetite for such delivery service companies seems to be insatiable. Take DoorDash for example. The company competes with GrubHub and Uber Eats but recently tripled its valuation in only about 5 months to $4 billion despite not even being profitable.
Moreover, Uber Eats owns about 20% of the market while GrubHub, including Seamless and Eat24, has 52% market share. And even in the face of that steep competition, DoorDash has raised nearly $1 billion overall to date. This should give you an idea of just how hungry investors are for on-demand service companies.
Even Chinese investor and WeChat owner, Tencent, is looking to get involved in the food-technology sector in a big way by contributing a significant piece of a $500-$700 million raise for India’s Swiggy. The investment would value Swiggy at $2.5-$3 billion. Another app called Rappi is a Colombian on-demand delivery startup that recently brought in a new round of funding at a valuation north of $1 billion.
But there’s a problem, most of these on-demand and food delivery companies are private. The regular retail investor doesn’t have access or the opportunity to invest in them. That is why we are putting the focus on Driven Deliveries Inc. (OTC: DRVD).
The closest thing to Driven Deliveries is EAZE, a private marijuana delivery service based in San Francisco. EAZE is closing a $65 million venture capital funding round that would value the company in excess of $300 million, according to Axios . With a similar model to Driven Deliveries, EAZE is essentially like an Uber for weed. EAZE currently only delivers in California but recently launched a marketplace for shipping cannabidiol products to 41 states and Washington D.C. But again, EAZE is a private company leaving Driven Deliveries (OTC: DRVD) is one of the only options for retail investors looking to capitalize on this growing trend.
Canada Had Its Turn, Now It’s All About the U.S.
According to Statista , the United States legal cannabis market is projected to be valued at $24.1 billion by 2025. And a recently introduced bill to Congress could catapult the industry to those record levels even quicker than originally expected.
The Secure and Fair Enforcement (SAFE) Banking Act, if passed, would allow federal banks to accept revenue from and provide banking services to businesses profiting from the sale of cannabis. The House and Financial Services Committee already voted 45 to 15 in favor of moving the legislation towards a vote.
The passing of this bill could send a lightning bolt straight through the heart of the U.S. cannabis market sparking industry growth that would trump what we saw in Canada after fully legalizing marijuana nationwide.
The SAFE banking act of 2019 could open the flood gates for the U.S. cannabis market. Forbes is predicting a combined yearly growth rate for North American marijuana sales to be 25% by 2021. To put that into perspective for you, the growth rate during the dot-com era was 22%.
The Amazon Touch
Driven Deliveries, Inc. (OTC: DRVD) is taking pages straight out of Amazon’s playbook. The company recently launched a new delivery model, Driven Direct. This will allow Driven Deliveries to work directly with brands and retailers to deliver a broad range of cannabis products directly to consumers.
Driven Direct’s structure will resemble that of Amazon’s delivery model. The program is designed to let entrepreneurs run their own local delivery networks featuring the Driven Deliveries logos. Each delivery unit will begin its day at a designated Driven station in California, where packages ordered from local retailers are then picked up by Driven Deliveries, Inc. drivers and delivered direct to the consumer. Location-based algorithms will determine which packages are sent to these delivery stations.
The program is critical in addressing the retailers’ primary transportation issue, last mile delivery. “Last Mile Delivery” is a term used in supply chain management and transportation planning to describe the movement of people and goods from a transportation hub to a final destination, in this case the consumer.
In 2018, the global last mile delivery market size was $30.2 billion and it is expected to reach $55.2 billion by the end of 2025, with a CAGR of 9.0% during 2019-2025. See the company press release.
But Everyone Wants to Be Like Amazon
We know what you’re thinking, of course a small company is going to want to resemble and try to replicate Amazon’s model and strategies. But how many companies trying to do so are being guided by former Amazon executives?
In February 2019, Driven Deliveries (OTC: DRVD) added Jerrin James to serve as the Chief Operating Officer. Mr. James is an accomplished global logistics and supply chain executive who has led operations, supply chain and logistics at technology giants such as Amazon, Groupon, and Facebook. Previously, he served as Head of Logistics at Facebook with global responsibility.
Mr. James was instrumental in optimizing end-to-end supply chain procedures, yielding significant efficiency gains in each one of his previous roles. He possesses extensive experience leading and executing multichannel distribution, supply chain and logistics strategies across multiple continents for these extremely fast-paced high-growth companies. See the company press release.
The value of adding someone like Jerrin James is immeasurable. The fact that someone with his track record and experience wanted to take on an executive position with Driven Deliveries (OTC: DRVD) speaks volumes about what this company has going on. So, it is no surprise that just 1 month after adding Mr. James, Driven Deliveries launches Driven Direct, a similar delivery model seen in Amazon.
But Wait, There’s More!
As if adding a former Amazon, Facebook, and Groupon executive wasn’t impressive enough, Driven Deliveries took it one step further. In March 2019, the company added Adam Berk to their Board of Directors.
Mr. Berk is the founder and developer of the technology and logistics company that went on to become GrubHub Inc.
As we mentioned earlier, GrubHub, including Seamless and Eat24, owns 52% of the on-demand food delivery service market. Mr. Berk also currently serves as the Chief Executive Officer of Stem Holdings, a leading cannabis MSO (multi-state organization) that is fully vertically integrated, with operations developing in over 10 states. See the company press release.
CEO of Driven Deliveries, Chris Boudreau, had this to say about these two key personnel additions with regards to the launch of Driven Direct,
“Management has built a strong foundation of human capital via the recent additions of Mr. Jerrin James from Amazon and Mr. Adam Berk of Osmio (now GrubHub) Jerrin’s background in operations, large-scale processes and advanced technologies coupled with Adam’s skills in E-commerce and logistics, provide a strategic advantage that will help to make Driven Direct a success. I’m confident that as the marijuana delivery market continues to evolve, bespoke services that address last mile delivery will become increasingly vital to the process. We intend to move aggressively into this market and establish ourselves as the leader in this expanding industry.“
But this isn’t where the growth trail ends, but where it begins. The company’s LOI to acquire Ganjarunner, Inc. could become a game-changing deal for the company. Why? Aside from rapidly expanding the corporate footprint, the deal will add accretive revenue growth and an existing customer base. The transaction also could significantly expand Driven’s next day delivery network and service area along with Ganjarunner’s California cannabis delivery license.
Ganjarunner has shown continuous revenue growth since its inception. Since May of 2018 Ganjarunner has fulfilled over 17,000 deliveries to more than 6,000 customers and has experienced revenue growth of 54% to $2.6 million. Ganjarunner is rapidly expanding its existing customer base of over 10,800 customers and by adding over 1,300 new customers in Q1 CY2019 alone. Ganjarunner adds a solid revenue foundation to Driven as over 82% of Ganjarunner’s current business is from derived from repeat customers.
Driven Deliveries Inc. (DRVD) has officially partnered with 10 brands for Driven’s Brand to Consumer cannabis delivery service. Flav, Presidential RX, Cosmo D’s, Nug, Gold Drop, Stone Road, Pure Ratios, La Vida Verde, Skunk Feather, Blank Brand, and New Leaf Family Farms products are now part of Driven’s ever-expanding brand partners portfolio.
In each of the partnerships, Driven has secured the rights to provide each brand with its own unique and branded e-commerce store with the transaction completed and fulfilled by Driven.
Why could this be such a big deal for Driven Deliveries? Through the 10 branded e-commerce stores, and the Ganjarunner online store, Driven and its brand partners will offer more than 500 retail items, including award-winning edibles, topicals, elixirs, concentrates, smokable products, storage, apparel and accessories to customers in California. Considering that California is expected to reach over $4.7 billion in cannabis sales by 2025, this could be POWER MOVE.
New Opportunities – Expansion Across US
Driven Deliveries, Inc. (DRVD) Enters $530 Million Nevada Cannabis Market
Driven Deliveries (OTC: DRVD) announced in mid-2019 that it has successfully launched operations in Nevada with Shango Marijuana Dispensary, one of the most successful stores in the State. The new endeavor provides Driven with a monumental opportunity to serve Las Vegas, the largest market in the State with massive tourism, and a central launch point for additional markets throughout Nevada.
The Nevada cannabis market has been growing at a rapid pace. Nevada retailers sold approximately $530 million worth of medical and recreational cannabis in 2018*. The $44.1 million in monthly revenue represents a 35% increase when compared to monthly revenue in 2017. According to New Frontier and Arcview Market Research, annual legal cannabis sales in the state are projected to grow to an estimated $629.5 million by 2020.
Shango Premium Cannabis is the leading medical and recreational medical dispensary license holder, grower and manufacturer in multiple states across the country. The Company currently owns cannabis-related licenses in Oregon, Washington and Nevada, with expansion plans that include retail, manufacturing and product distribution in Michigan, New Jersey and California in the cannabis market and nationwide for its CBD products.
Shango is vertically licensed to create a full range of award-winning cannabis products, including flower, extracts and cannabis-infused edibles, produced by expert cultivators and processors in Oregon, Nevada and Washington.
Another Big Market Move: Driven Deliveries Inc. (DRVD) Signs LOI to Acquire Cannabis Retailer, Mountain High Recreation
Driven Deliveries (OTC: DRVD) secured $2.5 Million in annual revenue and could significantly expand its product offerings! How? The company has signed a Letter of Intent to acquire cannabis retailer, Mountain High Recreation (MHR).
Operating primarily in Northern California, Mountain High Recreation currently offers marijuana for sale online, with a menu of cannabis flowers, concentrates, waxes, vapes, edibles, tinctures, CBD products, and accessories. The acquisition will enable Driven to expand its services to now include dynamic same day and intraday orders and delivery.
Driven Deliveries (OTC: DRVD) will now offer event-based sales and marketing through on-location mobile stores increasing its addressable market and audiences to include those traveling from out of state. With the acquisition, Driven Deliveries (OTC: DRVD)’s combined customer count will increase to nearly 40,000 while its brand portfolio will expand to more than 80 brands an overall transactions should exceed 45,000 deliveries annually.
It’s All About Growth
Driven Deliveries (OTC: DRVD) has homed in on two of the most rapidly growing industries in the market today, cannabis and on-demand technology. Separately, each industry provides tremendous growth for investors as company valuations continue to soar into the multi-billions. But there is just one company in the U.S. combining the two growth sectors into one unique, disruptive technology.
Driven Deliveries (OTC: DRVD) has first mover advantage while being led by a team of industry juggernauts. A well-rounded and experienced management team and board brings decades of knowledge and expertise from some of the largest, most successful companies in the world like Amazon, Facebook, and GrubHub. If such industry professionals are intrigued by what Driven Deliveries (OTC: DRVD) has to offer, don’t you think you should be too?
Disclaimer: Pursuant to an agreement between MIDAM VENTURES, LLC and a third party, Data Marketing Solutions Inc., Midam was hired for a period from 04/22/2019 – 5/22/2019 to publicly disseminate information about Driven Deliveries Inc. including on the Website and other media including Facebook and Twitter. We were paid $50,000 (CASH) for & were paid “0” shares of restricted common shares. Midam has been paid an additional $50,000 and extended its contract to 6/15/2019. Midam has been paid an additional $50,000 and extended its contract to 7/15/2019. We may buy or sell additional shares of Driven Deliveries Inc. Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
ParcelPal to distribute Yield’s cosmetics in Vancouver
ParcelPal Technology Inc. (PTNYF) (PKG.CN) has formed an alliance with Canadian cannabis topicals company, The Yield Growth Corp., for same-day and on-demand delivery, sale, of hemp-based cosmetics from Yield Growth’s subsidiary Urban Juve in Canada.
This initiative between Yield Growth and ParcelPal will commence in Vancouver as the catalyst city, and it is expected that additional cities will be rapidly added to this distribution network across Canada. Urban Juve’s customers will be able to purchase through Urban Juve’s website ( www.urbanjuve.com ) and ParcelPal will create an exclusive marketplace applications. Urban Juve hemp products are currently sold in over 90 locations including well known pharmacy chains across North America, with a plan to expand that to 130 retail outlets in the near future.
Customers will be able to track their purchase in real time and have their product delivered to any location they specify. As time and regulations allow, ParcelPal’s cannabis network will continue to grow, with the goal of capturing a major piece of Canada’s $5.2 B legal cannabis market.
President and CEO, Kelly Abbott states, “ParcelPal is thrilled to be working an innovative company such as The Yield Growth’s Corp, which is addressing one of the fastest-growing subsegments of the $4.2 trillion wellness market with unique derived and cannabis infused products. This marks a milestone at ParcelPal, launching a new vertical with substantial growth potential. It’s also a unique opportunity to be at the forefront of an exciting new industry with our unique logistics solutions.”
President and CEO of The Yield Growth Corp. Penny Green States “This new agreement is part of our continued efforts to serve our customers as seamlessly as possible,” says Penny Green, CEO of Yield Growth Corp. “ParcelPal is a great service, and our alliance will lay the groundwork for us to eventually offer same-day delivery service for pain management cannabis topicals and other cannabis products in jurisdictions where they’re legal.”
About The Yield Growth Corp.
The Yield Growth Corp. develops, manufactures and distributes cannabis and hemp infused luxury product brands Urban Juve and Wright & Well, and has a catalogue of over 200 wellness and beauty formulas. It intends to disrupt the international wellness market which is a 4.2 trillion global economy, according to the Global Wellness institute, by connecting ancient healing with modern science and technology. It’s management team has deep experience with global brands including Johnson & Johnson, Proctor and Gamble, M-A-C cosmetics, Sketchers, Best Buy Aritzia, Coca-Cola, and Pepsi Corporation. Yield Growth Serves mainstream luxury customers who seek sophisticated wellness products. It has flagship consumer brand, Urban Juve, has proprietary, patient pending hemp root extraction technology and has 12 patents pending. Yield Growth is building sophisticated international distribution channels and has multiple revenue streams including licensing, services and products.
About ParcelPal Technology Inc.
ParcelPal is a technology-driven logistics company that connects consumers to the goods they love. Customers can shop at partner businesses and through the ParcelPal technology receive their purchased goods within an hour.
The Company offers on-demand delivery of merchandise from leading retailers, restaurants, medical marijuana dispensaries and liquor stores in Vancouver and soon in major cities Canada-wide. ParcelPal Website: www.parcelpal.com
3 Cannabis Stocks In Focus This Week
One of the sectors that have enjoyed exponential growth over the past year or so is the marijuana sector and during the period, many of the stocks have gained significantly on the back of heightened investor interest.
It’s necessary to point out that in a fast-growing industry, it’s possible for stocks to rise significantly as well as the industry going through a fair bit of churn. Hence, investors could make significant returns if they manage to choose the right stock. Here is a look at 3 cannabis stocks.
Cannabis Stock To Watch #1: Driven Deliveries
Driven Deliveries (DRVD) focuses on several segments of the cannabis industry. Its leading service is for marijuana delivery in the United States. And this summer has been a busy time for Driven Deliveries. Most recently the company signed 10 brands as part of Driven’s Brand to Consumer cannabis delivery service.
In each of the partnerships, Driven has secured the rights to provide each brand with its own unique and branded e-commerce store with the transaction completed and fulfilled by Driven. Through the 10 branded e-commerce stores, and the Ganjarunner online store, Driven and its brand partners offer more than 500 retail items.
This includes edibles, topicals, elixirs, concentrates, smokable products, storage, apparel and accessories to customers in California. Because California is expected to reach over $4.7 billion in cannabis sales by 2025, the timing of this expansion could be opportune for the company.
Over the last few months, shares of Driven have traded in a range of $0.60 to $1.00 and are currently near the lower end of that range. Since the cannabis industry has started to see a resurgence of activity due to things like new ETF’s going live, the next move for the sector could be exciting to watch.
Cannabis Stock To Watch #2: CannTrust Holdings
CannTrust Holdings (TSX:TRST) (NYSE:CTST) is among the bigger producers of cannabis in the industry but the company had a setback on Monday after it emerged that one of its plants in Pelham had produced cannabis without a license from Health Canada. It happened in the months prior to the company getting its license in March.
5200 kilos of the production from the period is now going to be tested for compliance while 7500 kilos from another plant has been voluntarily held back by CannTrust. The shares fell by 22% on Monday but it should be noted that the company’s facilities are currently fully compliant with Health Canada regulations.
Cannabis Stock To Watch #3: OrganiGram Holdings
The other marijuana penny stock that gained last week due to an unexpected endorsement from one of the titans of the industry was OrganiGram Holdings (TSXV:OGI) (NASDAQ:OGI). The stock surged by as much as 8% after the former CEO and founder of industry leader Canopy Growth Brian Linton picked it as the one company with the potential for the biggest growth in the future.
Linton was voted out by the board of Canopy Growth but when asked about the company he likes, he stated that he had a good experience while dealing with OrganiGram in the past.
Premier Health and CB2 Insights Move to Second Phase of Primary Care Physician Tools for Medical Cannabis Evaluation
VANCOUVER, British Columbia, July 09, 2019 (GLOBE NEWSWIRE) — Premier Health Group (CSE: PHGI, OTCQB: PHGRF, Frankfurt: 6PH) (the “Company” or “Premier Health”), a Company focused on developing innovative approaches that combine human skill-based expertise with emerging technologies for the healthcare industry, has successfully completed Phase One of CB2 Insights’ (CSE:CBII) Clinical Decision Support (CDS) tool integration including targeted user testing.
Premier Health’s leading Electronic Medical Records (EMR) platform, Juno, will provide access to its over 4,600 primary care physician and healthcare practitioner users to the industry’s only data-driven platform that guides clinicians through the evaluation process for medical cannabis treatment. After a successful completion and user feedback within this first stage, both parties anticipate full rollout will be completed in Q3.
The agreement will be the first of its kind, with primary care physicians previously lacking the resources and tools required to assess the validity of medical cannabis as a treatment option for their patients. The CDS tool provides comprehensive guidelines for physicians to input patient-specific parameters into the system which is powered by proprietary algorithms leveraging data from more than 500 clinical research papers and trials as well as the anonymized and aggregate data of more than 450,000 patient encounters that CB2 Insights has managed through its clinical arm.
“At Premier Health, our mission is to integrate the best CDS tools directly into our Juno EMR platform that will equip physicians to make enhanced health-related decisions,” said Dr. Essam Hamza, CEO of Premier Health. “Our work with CB2 Insights has been long awaited by physicians who understand the benefits of medical cannabis, however are unsure of how to incorporate it within their clinics. We are excited to be bringing this robust and medically validated tool to our Juno userbase.”
“Physicians are the gatekeepers to any pharmacological treatment option for patients and enabling them to include medical cannabis into those options is a key advancement in the industry that all stakeholders should be excited about,” said Prad Sekar, CEO of CB2 Insights. “The success of this project thus far is confirmation that healthcare practitioners have been awaiting the tools that will help them remove the barriers that persist in the complicated world of medical cannabis. When you are dealing with a new treatment that can be applied to a wealth of patient indications from chronic pain to anxiety to sleep disorders and so on, paired with an array of medicine with varying levels of strength and outcome, we are proud to have created a tool that has received overwhelming physician support in this first stage.”
As part of Phase One, users were given the opportunity to test the system and provide feedback on both the applicability and user experience of the tool. The group of physicians who took part in Phase One included cannabis naïve physicians as well as those with advanced medical cannabis experience. Based on the positive feedback received from physicians, both parties agreed to immediately move into the final integration phase.
This agreement marks the first full-scale commercialization of CB2 Insights’ Data Insights business unit. CB2 Insights expects to monetize this tool through subscription of data reports paid for by Cannabis Licensed Producers from the aggregate and anonymized data collected on Canadian products. These reports will provide Producers with much needed clinically-generated efficacy data on specific products as well as the aggregate data to support research & development efforts and future commercialization. CB2 has already had successful conversations with Licensed Producers who have shown early commitment to subscribe to these reports.
As part of the agreement, CB2 will provide the development and continuous maintenance and support of the CDS tool and all related technologies. Premier Health will support the partnership by providing access to their software and will engage in education and training to its growing network of physicians and other healthcare professionals.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
About Premier Health
Premier Health is a Canadian company that is strategically poised to take advantage of business opportunities in the global health care industry. We are focused on innovative health care approaches that combine human skill-based expertise with emerging technologies. Premier Health, in conjunction with its subsidiary Cloud Practice, a cloud-based SAAS Electronic Medical Records software company, is developing proprietary technology to deliver quality healthcare through the combination of connected primary care clinics with telemedicine and artificial intelligence (AI). We currently have a combined ecosystem of 290 clinics, over 3000 licensed practitioners and almost 3 million registered patients. The Premier Health team has deep clinical, operational and financial expertise and a passion for improving healthcare for all patients.
For more information on Juno EMR, please visit www.j unoemr. com.
About CB2 Insights
CB2 Insights has a mission to mainstream medical cannabis into traditional healthcare. We do so by gathering data and creating objective real-world evidence through our proprietary software and service brands. Using clinical management and data collection software at the point-of-care, CB2 Insights and its group of sub-brands has become a leading force behind bringing traditional healthcare protocols to the rapidly evolving global cannabis industry.
For more information please visit www.cb2insights.com.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
FOR ADDITIONAL INFORMATION CONTACT:
Premier Health Group Inc.
Email: investors@ mypremierhealth .com
Renmark Financial Communications Inc.
Bettina Filippone: bfilippone @renmarkfinancial .com
Tel:(416) 644-2020 or (514) 939-3989
www. renmarkfinancial .com
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