Black Market VS Costco of Cannabis


Formerly illegal, California cannabis seems to have an issue with the black market. Despite the availability of dispensaries with both recreational and medical options.

Hence, the matter stems from individuals with limited financial resources seeking more economical cannabis options.

Y Combinator

However, a new startup called Flower Co. (The company was funded by Y Combinator’s a firm that invests capital in startups) has a game-changing approach.

Presently, the startup has declared they would provide consumers better bargains.

Expressly, by concentrating on partnering amidst growers directly, subsequently creating an in house brand. They then would allow users to arrange a cannabis drop off in advance.


The company proclaims itself the “Costco of cannabis.”

Flower Co, The Costco of Weed

The business announced that it had closed at $2.8 million in a seed round from investors that included:

  1. Slome Capital
  2. Prehype
  3. Rob Stavis
  4. Adam Draper
  5. Josh Abramson
  6. Camille Hyde

Another critical point that prior investors are viewing is the black market in California

As has been noted, the legality of weed has accelerated the cannabis black market, given that the prices are high.

In contrasting, Flower Co.’s CEO Ted Lichtenberger states, the organized cannabis market is just 1/4 the extent of the self deregulated market.

Ted Lichtenberger
Ted Lichtenberger

In due time, Flower Co intends to have cannabis enthusiasts focused on migrating from their current habits. Ditching black market cannabis and using their services, CEO Ted Lichtenberer indicates.

Specifically seeking legit, and more high-grade cannabis deals with the added advantages, as opposed to local unregulated purchases.

Similar to the Costco membership plan, there are deals on various items.

Albeit, anyone can create an e-commerce purchase on the site; however, subscribed members save as much as 40% on shopping.

As an illustration:

  1. One ounce of “Forbidden Fruit” is priced at $192 for non-members
  2. Members pay $142

With a membership, the company’s “House Sativa” goes for $63 an ounce

If you plan on joining the annual club membership, the price is $119. Including discounts,  faster delivery, and  admittance to the organization’s “private events and concert series.”

Furthermore, Flower Co. freshly began a two-day delivery service for clients in Sacramento.

As can be seen, Flower Co. seems to have a healthy and stable gameplan. It is coupled with a yearly membership that mirrors Amazon’s Prime program that includes speedy delivery, to the equally essential Perks of Costco. For those reasons, the cannabis industry will continue to expand.



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