This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pot on Wheels Service Forges Ahead Under City's Scrutiny

NEW YORK (MainStreet) — Although the San Francisco Department of Health is reportedly investigating the Uber-like pot delivery app called Eaze, Randall Nixon is undeterred.

The Silicon Valley entrepreneur is moving forward with plans to launch Moio Direct on September 15.

Read More: Marijuana's Answer to LinkedIn Pairs Job Seekers With Cannabis Employers

"Moio is different from Eaze, because they are employing their own drivers to carry marijuana products, but we are using the delivery infrastructure that already exists at dispensaries, which reduces our liability," Nixon told MainStreet.

Eaze is under scrutiny for allegedly employing drivers to deliver marijuana to medicinal users at their homes.

"It sounds like Eaze operates as a dispensary and that requires a permit," Nixon said. "Moio is not concerned with permits because instead of delivering marijuana we are taking orders for delivery."

A Department of Health spokeswoman named Rachael Kagan told the San Francisco Chronicle that whether Eaze will need a permit is a developing question the Department is currently reviewing.

"Seed to sale tracking systems have been proven to work from a regulatory standpoint in many of the 23 medical marijuana states and very few states with legal programs allow for off-site delivery," said Christie Lunsford, director of operations at 3D Cannabis Center and board member of the Women's CannaBusiness Network. "Concerns about diversion will need to be addressed before large scale delivery services can work consistently."

Companies like Eaze could face federal or state criminal charges and even forfeiture depending on their business model.

"The process will depend upon the regulations in that particular state if those regulations are even applicable," said Matthew Abel, a lawyer with Cannabis Counsel in Detroit and executive director with the National Organization for the Reform for Marijuana Law (NORML) in Michigan.

Read More: Electronic Nose Device Intrigues Cannabis Investor Community

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs