A Comparative Analysis of In-House and Outsourced Models

In the fast-growing world of cannabis retail, the choice between in-house and outsourced delivery is a pivotal decision. Industry professionals like cannabis logistics managers stress that both options have distinct pros and cons, each influencing customer experience, operational control, and long-term profitability.

Pros of In‑House Distribution

Running an in-house delivery fleet gives cannabis companies direct oversight of driver behavior, delivery timing, and compliance with strict regulations governing cannabis transport. According to insights from logistics experts, this control helps protect licenses and ensures consistent service quality. Drivers trained internally become brand ambassadors, offering personalized experiences and building customer loyalty—an asset often highlighted in positive online reviews of dispensaries with their own drivers.

Moreover, maintaining delivery in-house allows companies to capture valuable customer data, including buying habits and preferences. This data is critical for loyalty programs, targeted promotions, and accurate inventory management—benefits emphasized by many retail strategists.

Cons of In‑House Distribution

Despite the advantages, in-house delivery requires a large investment of capital and time. Vehicles must be purchased or leased, drivers hired and trained, and insurance and regulatory compliance maintained. Logistics managers note that the operational complexity of dispatching, routing, and managing a fleet can quickly overwhelm a dispensary unprepared for the workload.

Scaling in-house delivery also presents challenges. Expanding fleets to meet higher demand takes significant planning, investment, and additional staffing—often making it difficult for dispensaries to react quickly to short-term spikes in orders.

Pros of Outsourced Delivery

On the other hand, outsourced delivery services offer dispensaries a faster and more cost-effective way to launch delivery. Logistics specialists report that outsourced providers already have experienced drivers, optimized routing systems, and established compliance protocols, enabling dispensaries to start offering delivery with minimal setup.

Outsourced delivery services also make scaling easier. During promotions or holiday rushes, third-party providers can quickly ramp up capacity, helping dispensaries avoid the burden of hiring temporary drivers or purchasing extra vehicles.

Cons of Outsourced Delivery

While outsourcing simplifies launch and scaling, it often comes at the expense of brand control. Cannabis industry experts caution that outsourced drivers may not deliver the same level of customer experience as in-house staff, leading to inconsistent service. Reviews of outsourced delivery services sometimes cite late arrivals or poor communication, issues that can damage a dispensary’s reputation even if they stem from a third party.

Additionally, many outsourced delivery platforms charge high commissions or fees—some exceeding 25%—which can significantly cut into profit margins over time. Logistics managers also highlight concerns about data ownership, as customer information collected through third-party services may not be accessible to dispensaries for marketing or analysis.

What Cannabis Businesses Should Consider

When deciding on a delivery model, cannabis operators should weigh factors such as budget, scale, customer service expectations, regulatory requirements, and the value of customer data. Experts recommend in-house delivery for businesses prioritizing brand control and data access, while outsourcing is often the better fit for companies needing quick, flexible solutions without the burden of managing logistics directly.

For many dispensaries, a hybrid approach—using in-house delivery for core operations while outsourcing during high-demand periods—strikes the best balance between control and scalability.