In the past two weeks, Sugarmade Inc (OTCMKTS:SGMD) together with Budcars has posted a 10% week on week increase in overall sales. It is on the backdrop of the growing demand for the cannabis delivery service of Budcars and Sugarmade because more people are staying at home amid coronavirus pandemic.
Demand for cannabis delivery service to continue
Sugarmade expects continued demand for cannabis delivery service in the foreseeable future because of a shift in consumer behavior. Budcars is hiring employees to meet the current and growing demand. Sugarmade expects to reach its sales target of $15 million in 2020 because of this continued demand for cannabis delivery service.
Sugarmade acquires 40% stake in Budcars
Chief Executive Officer of Sugarmade, Jimmy Chan said the current coronavirus crisis is a game-changer for the company because it has caused a significant shift in consumer behavior. It expects this trend to continue for the long-term. Sugarmade entered a pact with Indigo Dye Group Corp to acquire a significant (40%) stake in Budcars for $700,000 in February 2020. It has an option to clinch a controlling stake in Budcars by acquiring an additional 30% stake.
Chan said Budcars is well-positioned to capitalize on the fastest-growing commercial markets with its cannabis delivery service and mobile ecommerce. Several people show a preference for home delivery because they are confined to homes at this difficult juncture. However, the demand for cannabis delivery service will continue in the future.
According to a note from the management, the outbreak of coronavirus has created a significant demand for home delivery of goods and services, online consumption, and virtual connectivity across the world in recent weeks. According to notable analysts, this trend expects to continue and created a demand for companies such as Instacart, Postmates, Amazon and other courier services.
According to Chan, the company is also witnessing an increase in order size besides an increase in the number of deliveries. Several customers prefer to stock edibles and flowers for an extended period of stay at home. Budcars is also expanding its operations into Southern California by acquiring two locations in the greater Los Angeles. Its primary locations in the Sacramento region are experiencing a commendable growth.
Published at Thu, 23 Apr 2020 12:06:57 +0000