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Writer's pictureJason Beck

“Marijuana recession” threatens Denver’s fledgling cannabis delivery businesses

Michael Diaz-Rivera spent the day before Thanksgiving delivering cannabis products to customers, prioritizing "Green Wednesday" over Black Friday.



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Green Wednesday, typically the second-busiest day of the year for cannabis sales, follows 4/20, the industry's unofficial holiday. Diaz-Rivera hoped to complete about 25 deliveries, anticipating people might stay indoors due to the cold and snow.


Diaz-Rivera founded Better Days Delivery Service in January 2021, around the time marijuana sales in Denver and Colorado began declining. Grants and technical assistance from city and state programs have helped him navigate the challenges of the cannabis industry. Still, Diaz-Rivera acknowledged the need for additional funding, emphasizing the importance of grants to keep his business afloat.


Denver established cannabis delivery licenses exclusively for participants in the city's social equity program. Diaz-Rivera qualified based on his background, which included growing up in a low-income area and a felony marijuana possession conviction in 2006.


Eric Escudero, spokesperson for Denver's Excise and Licenses office, emphasized the city's commitment to equitable access to the cannabis industry, particularly for those disproportionately impacted by marijuana prohibition. The social equity program supports individuals with past marijuana convictions or family members affected by such arrests. It offers business planning advice, training, site visits, and reduced licensing fees.


Cannabis delivery began in Denver in October 2021, following legislation allowing Colorado communities to permit deliveries starting in January of that year. Other cities permitting cannabis deliveries include Northglenn, Aurora, Boulder, Longmont, and Thornton.


To bolster participation, Denver updated regulations in 2022. By early 2023, deliveries increased slightly, but overall, the state faced a "marijuana recession." Cannabis sales peaked at $2.2 billion during the pandemic in 2021 but fell to $1.52 billion in 2023 and $1.06 billion through September 2024.


Denver issued 23 licenses for cannabis delivery, with only 14 currently active. Additionally, only 13% of Denver's 188 cannabis locations have delivery permits, as dispensaries must contract with licensed delivery companies. Escudero expressed concerns about the recession's impact on delivery businesses and hopes for their survival as the industry stabilizes.


Diaz-Rivera's journey began at age 19, when he sold marijuana to survive while living out of his car. Arrested in 2006 for felony distribution, he served a few months in jail and paid restitution. Despite challenges securing work, Diaz-Rivera earned an associate degree, transferred to Metropolitan State University of Denver, and became a fifth-grade teacher.


During the pandemic, Diaz-Rivera felt burnt out as a teacher and sought new opportunities. Learning about Denver's social equity program, he saw it as a chance to build a business and secure his children's future. He launched Better Days Delivery, navigating the risks of entrepreneurship with determination.


Diaz-Rivera operates with three drivers and five dispensary partnerships. Although he reduced driver hours due to a slow summer, he remains optimistic about recent increases in deliveries. He believes cannabis delivery aligns with trends favoring convenience and home delivery services.


However, Diaz-Rivera noted some dispensaries resist delivery services, fearing competition with in-store upselling opportunities. Curtis Washington, owner of Green Remedy, supports delivery services as part of Denver's social equity efforts. Washington, who also qualified for the program, believes delivery can complement in-store sales rather than detract from them.


State and city programs have provided Diaz-Rivera and others with grants, education, and resources. The Colorado Cannabis Business Office reported supporting businesses through over 3,500 hours of education, 66 grants creating or retaining nearly 300 jobs, and 55 new businesses. Governor Jared Polis's proposed budget includes ongoing funding to sustain these initiatives.


Diaz-Rivera emphasized the importance of continuing social equity programs to address harm caused by the war on drugs. His arrest affected his ability to secure employment and housing, underscoring the need for economic opportunities and support for those impacted by marijuana prohibition. He views social equity efforts as vital for both individuals and the broader economy.

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