Business
Sugarmade’s BudCars Sees Dramatic Jump in Delivery Demand as Coronavirus Impacts Cannabis Consumer Patterns
Sugarmade’s BudCars Sees Dramatic Jump in Delivery Demand as Coronavirus Impacts Cannabis Consumer Patterns.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n NEW YORK, March 12, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), along with the BudCars Cannabis Delivery Service (“BudCars”), announces a sharp rise in demand for its cannabis delivery service, driving an associated 10% week-over-week rise in total sales, over the past two weeks. The Company believes this dynamic is being driven by the stay-at-home trend that has emerged in many communities around the world in response to the global pandemic outbreak of the COVID-19 disease. The Company believes this shift in consumer behavior will continue for the foreseeable future. As a result, BudCars is undertaking an expansion in headcount to meet the current and anticipated sharp expansion in demand. The Company now anticipates the upward shift in sales growth to help solidify its $15 million 2020 revenue target as a conservative target for sales this year. “The Coronavirus pandemic is undeniably a game-changer for consumer behavior patterns that will likely have long-term implications as it drives new habits into place,” commented Jimmy Chan, CEO of Sugarmade, who recently announced a large stake in BudCars with an option for a controlling stake. “As a growing mobile ecommerce and delivery service in one of the fastest growing commercial markets, BudCars is extremely well-positioned for this dynamic. It’s already very clear: people are showing an overwhelming preference toward delivery as nesting takes hold. That applies to cannabis as much as anything else. We are fully prepared for a continuous ramp in demand for our delivery services over coming months and beyond.” Management notes that the COVID-19 outbreak has resulted in a dramatic jump in demand for virtual connectivity, online consumption, and home delivery of goods and services around the world over recent weeks, and most analysts now expect that trend to continue. This has led to strong increases in demand for companies like Amazon, Postmates, and Instacart, as well as many other courier and delivery services. This dynamic is now impacting the California legal cannabis market. Chan continued, “We aren’t just seeing a bump in the number of deliveries, but also in average order size, with many customers indicating ...