GRN Holding Corporation announced that it was signing a non-binding letter of intent to purchase drones for a business-to-business marijuana delivery service. Drones, which were originally designed for military operations, will be equipped with GPS tracking and iPads for payment. Justin Costello, the CEO of GRN, expects to start testing deliveries in Seattle in February or March.
To save money on logistics costs, a cannabis company has announced a plan to start a cannabis drone delivery service for customers in Seattle.
GRN Holding Corporation announced a new method of delivering cannabis when it bought the drones company, Squad Drone. The first test flights are scheduled for February and March.
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Cannabis drone delivery service to bring new interest to the industry
Some say that when it comes to rising industries like cannabis, the sky’s the limit. That is about to be tested by a Seattle based company that plans to use a cannabis drone delivery service.
“We anticipate that the whole industry will apply this method if the law allows it,” said Justin Costella, President of GRN Holding Corporation.
Costello claims that drones will significantly reduce the costs associated with the supply of cannabis. The global legal cannabis market will be worth $13,346 billion by 2019 according to the Brightfield Group, and 80% of these sales will be made in the United States.
How a cannabis drone delivery service works
All drones will be controlled from the command center and will be ruled by licensed operators. The company plans to employ about 20 employees who will be responsible for calibrating the drones, connecting charging points, securing supply boxes and configuring the flight system.
The cannabis drone delivery service fleet has been tested and adapted to the needs of the cannabis industry over the past year and consists of six drones with a payload of up to 40 kg and a range of 10 km.
The drones will be equipped with a very accurate advanced GPS navigation system and the CannaTrac payment system for payment on delivery. The application will be integrated with manufacturers, processors, and retailers.
CEO calls cannabis drone delivery service a courageous effort
“It was hard for me to keep this cannabis drone delivery service project secret because it’s so cool. It’s the bravest move in the industry I’ve ever been involved in. We will work urgently with regulators to ensure that the technology meets regulatory standards and requirements in the various states,” said Costello.
Logistics and safety are a major cost to the cannabis industry. but GRN Holding Corporation expects to reduce delivery costs by around 80% with their cannabis drone delivery service.
The system will speed up delivery times and develop an environmentally friendly process for moving products.
Seattle sees a big tech step towards the future
While the cannabis drone delivery service will be made for dispensaries rather than customers, it also marks a step forward for drone deliveries in Seattle. The idea was first pitched by Amazon when it teased drone deliveries with “Prime Air” years ago.
Drones are battery-operated but are also equipped with a backup hybrid drive, which is responsible for charging the battery and possible extension of the drone’s lifetime.
“It’s amazing that our company can be a part of something so groundbreaking while helping to create cashless and safe standards for the cannabis industry. The cost of running and operating a cannabis drone delivery service is basically 10% of the cost of maintaining a van,” said Tom Gavin, CEO of CannaTrac.
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