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“Uber for Weed”: Could a Pot Delivery Service Happen in Oregon?

Thursday, May 14, 2015

 

With ridesharing services Uber and Lyft now legally operating in Portland and the legalization of recreational Marijuana going into effect July 1st, could Portland be the perfect city for a pot delivery service? 

Sidecar, a ridesharing service similar to Uber, is now offering a medical marijuana delivery service to patients in the San Francisco area in partnership with start up company, Meadow, which calls itself an "Uber for Pot."  Meadow allows patients to browse through items and place orders from different dispensaries in the city, which pay Meadow a refferal fee and use their own drivers to deliver the marijuana. But now, Meadow's partnership with Sidecar gives dispensaries another option for delivery.   

Jim Mullen is the manager of The Herbery, a recreational marijuana dispensary in Vancouver. He believes a service like this would be beneficial for both his customers and his business. 

"Delivering would be a huge opportunity for us to help those who physically can't leave their homes," said Mullen. "This is definitely something that we would want if the opportunity presented itself." 

Although Oregon already has medical marijuana dispensaries, the presence of recreational pot shops set to open in the coming months and years might trigger a greater demand for a delivery service like Meadow. 

Tom Towslee, Public Affairs representative for the Oregon Liquor Control Commision (OLCC) doesn't agree. As for the OLCC's review of the legality of a business like this, Towslee said it's not a priority. 

"This service probably won't happen, considering nobody has asked for it. We honestly have bigger issues to deal with such as hiring licensing staff, etc.," said Towslee. "When Measure 91 was approved this was never envisioned. We feel no sense of urgency in regards to this service." 

Although the legalization of recreational marijuana goes into effect July 1st, the OLCC has until the early half of 2016 to start issuing marijuana business licenses. There's a chance that by that time, the status of Uber and Lyft's ability to operate in Portland may change. 

On April 17, Mayor Hales and Commissioner Steve Novick proposed a 120-day pilot program to ensure fair competition between all private for hire operators including the city's taxi companies, but the program is just phase 1 of a greater process to allow Uber and Lyft to operate in the city.  After the pilot program, the city's Private for-Hire Innovation Task Force, which Novick appointed in December 2014, will assess the market data, solicit public input, and release a final report later this summer which will include recommendations for all modes of for-hire transportation, including taxicabs, limited passenger transportation companies, pedicabs and shuttles.  

Another road block to a ride-sharing, pot-delivery service in Portland may be the fact that Uber and Lyft's primary service is not delivery. While Sidecar still offers rides to people, deliveries now make up more than half of the company's revenue in San Francisco only three months after it launched its delivery service, according to Business Insider

Sidecar is currently available in ten U.S. markets and based in San Fransisco. It does not operate in Portland at the current time.

 

Related Slideshow: Ten Things to Know About Marijuana Legalization in Oregon

Here are ten things you need to know now that pot is legal in Oregon.

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1) Drug testing will continue

Despite marijuana being as legally permissible as a pint of beer, many of the largest employers of Oregonians will continue to include marijuana in their employee drug screens. 

Fred Meyer, one of the largest employers across the state, said the company plans to continue drug testing its Oregon employees regardless of the new law. 

Melinda Merrill, Fred Meyer communications director, said the company employs truck drivers, heavy equipment operators and other positions that require drug screening. 

“We have to make our employees safe,” Merrill said.

Companies that employ heavy equipment operators are required to buy insurance. Companies that employ workers who operate machinery while simultaneously employing workers who do not are sometimes offered a lower monthly deductible if they test all of their employees across the board, as opposed to only testing a portion.

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2) Your neighborhood dealer may be able to stay in business

The average price for marijuana in Oregon is among the lowest in the nation at sightly over $9 per gram, according to data collected by priceofweed.com.

The economy for recreational pot in Washington failed to gain the footing that was expected by some experts. The notion of Seattle being crowned as the new Amsterdam went up in smoke after consumers saw how the state’s taxes increased the price of marijuana - three joints can run a Washington customer $75, while a gram of the plant’s dried flowers cost around $30.

While the taxation in Oregon isn’t expected to bump prices that high, customers who have grown accustomed to the state’s high quality, low-price buds and hash oils may turn their noses up at even the slightest increase.

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3) Taxes on pot will be different than Washington and Colorado laws

Marijuana sold from licensed vendors in Oregon will carry taxes of $35 per ounce on marijuana flowers, $10 per ounce on all marijuana leaves and trimmings and a $5 tax on all immature plants or clones. The tax rates will be reevaluated every two years and adjusted for inflation. The revenue will be allocated to support government services - 40 percent will support public schools, 20 percent will support law enforcement, 20 percent will support mental health and 5 percent will support the Oregon Health Authority.

State-licensed vendors may still face obstacles, however, when it comes to their federal income taxes. Internal Revenue Section code 280E denies any tax deductions and credits for businesses that traffic any controlled substances that are prohibited under federal law.

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4) You can’t smoke up wherever you please

The law stipulates that use of marijuana, including injection, ingestion and inhalation of the drug is prohibited in public places. In other words, you won't constanty be seeing (or smelling) people lining sidewalks lighting up a joint.

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5) There are also restrictions on growing

No one is permitted to have more than four marijuana plants at a time - considerably less than the 12 plants that Washington residents are allowed to grow. The law also restricts plants being grown in public view.

Sorry, window-sill gardeners.

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6) Marijuana DUIs may be addressed in future legislation

Unlike the Washington law, which included attached regulations concerning driving impairment, Oregon’s law has more room for interpretation. 

Driving under the influence of marijuana is classified as a class b traffic violation, which carries a presumptive fine of $260 and is not to exceed maximum fine of $2,000. The Oregon Liquor Control Commission has been tasked with researching the subject of drugged driving and presenting its finding to the Oregon Legislative Assembly no later than January 2017.

After reviewing the OLCC report, the state legislative assembly will decide whether passing more extensive driving regulations will be necessary.

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7) Legalization won't take effect until summer.

Anyone over 21 will be allowed to possess small amounts of marijuana for their personal use from July 1, 2015.

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8) Crossing the Columbia River with a state-licensed spliff will catch you a felony

Although marijuana is simultaneously legal in Oregon and Washington, it's illegal to transfer the drug between the two states.

Measure 91 is only applicable to Oregon and marijuana remains illegal under federal law. Even with a physician’s subscription, marijuana is classified as a Schedule I controlled substance - meaning that anyone transporting it across state lines is prosecutable by federal agencies. 

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9) Legalization could mean big money for financial service startups

It’s not just the vendors whose businesses will grow under legalization - companies like Greenpay are expected to expand rapidly once the new legal market gets its footing. Greenpay would allow consumers to instantly purchase marijuana using their smartphones.

Greenpay is a wholly-owned subsidiary of MyEcheck - a publicly traded company whose shares typically trade for less than ten cents on the New York Stock Exchange. With legalization efforts gaining momentum around the country, companies providing auxiliary services for the marijuana industry may create an economic boom.

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10) It’s spreading like the plague

In an interview with GoLocalPDX, proponents of Measure 91 said they’re focused on achieving legalization for other states, including California, in the 2016 election.

 
 

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