Bay Area’s "Uber of Weed" Eaze to Cease Operations Amid California Cannabis Market Turmoil

The enduring uncertainty surrounding the future of one of the Bay Area’s high-profile startups, Eaze Technologies, Inc., has culminated in a definitive closure. CEO Cory Azzalino confirmed to KRON4 News yesterday that Eaze, once branded the “Uber of weed,” will cease operations by December 31, following the sale of its assets at an auction early in August. This perspective was similarly shared by Azzalino in a post on his LinkedIn profile, as reported by SFGATE, painting a sobering picture of the layoffs that will impact nearly 500 workers amid the tumult of California’s cannabis market.

Founded in 2014, Eaze quickly became a cornerstone of the legalized cannabis industry by offering convenient and efficient delivery services. However, the company’s fortunes took a turn following a series of legal and financial struggles culminating in lenders’ foreclosure of their assets on August 6, according to an email from Azzalino. Despite the immediate impact of this action on the company’s operations, Azzalino assured his staff of the ongoing discussions with the new ownership group about Eaze’s potential future. Notably, those represented by UFCW, the union involved, are expected to engage in bargaining discussions regarding the wind-down effects, Eaze CEO stated in a letter to employees obtained by KRON4 News.

The collapse of Eaze marks yet another casualty in a string of setbacks for California’s legal cannabis market, a sector that has witnessed the fall of giants like MedMen and Herbl. Once sporting a valuation of $700 million, the company’s demise follows a contentious period, including legal disputes and a former CEO pleading guilty to bank fraud in 2021. Billionaire investor and Netscape co-founder Jim Clark, who stepped in with substantial financial backing in the company’s waning days, is now facing collateral losses through the foreclosure process, as reported by High Times.

Amidst the logistical and operational fallout, Eaze’s workforce braces for significant change. The Vice President at UFCW, Jim Araby, conveyed that some workers might have a chance at re-employment under the new ownership in 2025. He further commented on the challenges facing the legalized market, highlighting California’s high cannabis taxes and lax enforcement against illegal competitors , contributing to the closure of almost 500 union jobs. “This closure and the fact that almost 500 union jobs are going to be lost in the cannabis industry should be a wake up call to the state legislators and the government that more action needs to be taken,” Araby said, as per SFGATE.