When Joseph Rubin and Jessica Powell launched Doobie Delivery in July 2021 in Missouri, the main goal for the company was to eventually expand operations to the East Coast, specifically in the New York tri-state area.
And that goal was recently hit, as the company announced its partnership with Union Square Travel Agency: A Cannabis Store (USQTA), a Manhattan-based cannabis dispensary, to offer delivery services across New York's five boroughs, with expanding operations to the Hamptons throughout the summer.
The company now operates throughout California, Massachusetts, Missouri and New York.
One of the biggest challenges in New York right now is the lack of licensed dispensaries. Former Gov. Andrew Cuomo signed legislation to legalize adult-use cannabis in 2021. The law allows the state’s licensed hemp farmers to apply for permits to grow cannabis to serve the adult-use market, but with only 15 adult-use retailers currently operational, and five of those being delivery-only operations with no brick-and-mortar storefronts, cultivators are struggling to sell their product.
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It's also no secret that the illicit market has continued to thrive in New York, despite its legalization two years ago. Rubin says that the legacy market presents a challenge for Doobie.
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"Of course, there's a proliferation of … legacy [operators], and I think us coming in allows us to touch a wider audience for USQTA and helps spread the word that legal cannabis is, in fact, here," Rubin says. "I think on the other side of that, of course, is the legacy operators affect the legal market and act as a roadblock in helping that expand quickly."
Rubin says informing New Yorkers that legal, adult-use cannabis is available in the state will be a main hurdle for the company over the next few years.
"Once it catches on, I think for everybody in the industry, it will grow," he says. "And I know dispensary operators are having a similarly tough time in letting people know that, 'Hey, here's a legal recreational cannabis dispensary with a product that's been tested in a laboratory.'"
Despite the market's challenges, New York offers Doobie the opportunity to serve a large audience in less time due to its population density—compared to a market like Missouri, where residential areas are more widespread.
Plus, Rubin says New York is just an attractive market for deliveries. "Uber Eats, Postmates, DoorDash, etc., in the United States, 30 percent to 35 percent on average of their deliveries come from New York City," he says.
"So for us, being able to translate that into efficient cannabis delivery is something that's very exciting," he says. "If we can optimize this based on the density you have here in New York City, there's a wonderful opportunity for us. If we can perfect this, we want to be able to do 10, 15, 20, 25, 30 deliveries an hour; we can do that based on the efficiencies in New York."
The Ice Cream Truck Model
Doobie tailors its operations to each market it serves.
For example, in New York and California, Doobie utilizes an ice cream truck delivery model, essentially allowing for a "mobile dispensary," he says.
"New York regulations allow for up to $20,000 of product to be associated or allocated into a vehicle that moves around," he says. "Theoretically, you don't necessarily want to move it around, but these are all unmarked vehicles that contain a set SKU count off what we determine in the morning in tandem with USQTA."
Powell says the vans could house from 30 to hundreds of SKUs.
"If we wanted to do delivery in Long Island for one of the days, we could park that truck out in Long Island, and we could offer delivery out of that vehicle to residences, homes, private addresses, etcetera, straight from that van within 15 to 30 minutes," Rubin says.
Rubin says Massachusetts allows for a different delivery model. The company has a depot there and may instead use a hub and spoke delivery model, which uses a centralized location, and orders are distributed as they are placed.
"If we were delivering in the hub and spoke model, which is like a pizza model where there's one order that comes in and then you drive it out, it would take us an hour to hour and a half to get out there," Rubin says. "So the ice cream truck [model] allows us the flexibility to service a wide swath of the state very quickly."
Security Measures in Place
With a delivery method like the ice cream truck model, solid security measures are vital to protect the product and, most importantly, employees.
Rubin says all the vans are unmarked and have several security cameras inside and outside. The vans also contain a GPS monitoring system, which allows the company to track the vans in real time.
Powell adds that the van drivers also don't wear uniforms or anything that would indicate they are operating a cannabis delivery vehicle.
"We have very strict security protocols within the van, and then couple that with not accepting any cash, it adds another layer of security because there's no cash on-site inside of vehicles as well," Rubin says. "All safety measures and precautions have been taken to prevent incidents."
Creating Customer Experiences
Powell says Doobie is incredibly adamant about enhancing customer experiences through delivery.
"I think there is a huge part that's missing when it comes to customer service for delivery," Powell says. "I think sometimes when you have, let's say, a DoorDash delivery and you get the wrong food, you sometimes don't know who to call. … We have a large customer service team. When you call 8888 Doobie, we answer all of your questions. We're kind of like a virtual budtender. So they have the menu information in front of them, and then we provide any feedback to customers and help them with their delivery."
Rubin hopes this process will help bridge the consumer gap in a market like New York.
"They've been used to products or legacy products without very much information. So the virtual budtender or our customer service agents bridge that gap and help people place orders, tell them about the product, what the potential effects might be, etcetera," Rubin says. "So it's essential that we have that and that they are readily available and accessible."
Staying On Top of Regulations
In an emerging market like New York, operators must ensure they stay updated with changes and regulations that can impact their operations.
For Doobie, the company has an internal head of compliance that continuously monitors regulations, Rubin says.
"Then you couple that with compliance attorneys and counsel that we have in-house as well as outside counsel, and they're able to keep us on the up-and-up and make sure that everything that's going on is copacetic," he says.
Right now the company's primary focus is New York, but it hopes to expand to New Jersey and Illinois eventually.
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