California’s largest cannabis delivery service, Eaze Technologies, is facing a major turning point after CEO Cory Azzalino announced that the company’s parent firm, Stache LLC, will wind down operations by the end of 2024.
In an internal memo shared with employees last week — and later posted publicly on Azzalino’s LinkedIn feed — the CEO warned that the long-running cannabis delivery brand may cease to exist unless new ownership steps in to continue operations. The announcement marks one of the most significant developments in the U.S. cannabis delivery sector to date.
“Stache LLC will be winding down operations, with the full closure expected to take place on or around December 31, 2024,” Azzalino wrote in the memo, citing severe financial strain, operational challenges, and the impact of California’s ongoing cannabis market pressures.
The revelation places the future of Eaze, a company once backed by major venture funding and considered an industry leader, into serious doubt — even as cannabis delivery remains one of California’s most heavily used consumer channels.
Background: Eaze’s Role in the Cannabis Industry
Founded in 2014, Eaze built its brand on the promise of fast, compliant, app-based cannabis delivery. At its peak, the company operated in multiple states, partnered with dozens of licensed brands, and delivered millions of cannabis products annually. For many California consumers, Eaze became the first and most familiar digital gateway into legal cannabis.
Eaze has long held the title of California’s largest cannabis delivery platform, relying on a marketplace model that connected licensed retailers and drivers to customers statewide.
But like many cannabis operators, the company has faced significant challenges in recent years, including:
- heavy taxes and regulatory burdens
- declining wholesale prices
- rising operational and labor costs
- increased competition, including from unlicensed delivery services
- difficulties accessing traditional financing
- broader economic headwinds affecting tech-enabled businesses
These pressures culminated in deep operational strain for both Eaze and its parent company — ultimately pushing Stache LLC toward a complete wind-down.
“New Ownership Will Determine the Future”
The most significant part of Azzalino’s memo was his admission that the future of the Eaze brand now hinges entirely on potential new owners.
The CEO emphasized that while Stache LLC will shut down, the company is engaged in ongoing discussions that could allow the Eaze platform, workforce, and marketplace to be sold or transferred.
“New ownership will determine if operations continue,” Azzalino wrote, signaling that Eaze’s future is no longer in the hands of its current leadership team.
This suggests two potential paths:
1. A buyer acquires the Eaze platform, technology, and brand
A well-capitalized cannabis multi-state operator (MSO), logistics provider, or tech firm could purchase the company’s assets. Such a move would allow:
- continuity for consumers
- preservation of jobs
- retention of partnerships with retailers and brands
- integration of Eaze’s delivery network into a larger operational ecosystem
2. The brand dissolves entirely
If no buyer emerges, Eaze deliveries will likely stop by early 2025 — representing the largest cannabis delivery shutdown in U.S. history.
The latter scenario would leave a significant hole in the California cannabis market, where delivery accounts for an estimated 30–40% of all transactions in some regions.
The Internal Memo: A Blunt Acknowledgment of Crisis
Azzalino’s memo — later shared publicly — highlighted both the urgency of the situation and the emotional weight of the announcement.
Key points included:
- Stache LLC will wind down fully by Dec. 31, 2024
- Employees should expect operational changes as the shutdown proceeds
- Leadership is exploring “strategic alternatives,” including acquisition
- The brand’s future is not guaranteed
- Employees will receive further communication as decisions unfold
The transparency of posting the memo publicly suggests the company wanted to get ahead of industry speculation and maintain trust with employees, customers, and partners.
What Went Wrong?
Industry analysts have noted that Eaze’s struggles reflect broader cannabis-market turbulence more than unique mismanagement.
1. California’s regulatory and tax climate
California remains one of the most expensive and complex markets for cannabis operators. Taxes, licensing fees, and compliance costs eat significantly into margins — especially for delivery services.
2. Competition from the illicit market
Unlicensed delivery operations, which avoid compliance and tax burdens, often undercut legal pricing. This continues to suppress revenue for legal platforms like Eaze.
3. Operational costs
As a delivery-first company, Eaze faces:
- driver logistics
- insurance
- labor costs
- delivery-fleet maintenance
- technology platform expenses
4. Funding drought in cannabis
Venture capital funding has slowed dramatically since 2021. Without new investment, cannabis companies that rely on cash-intensive delivery logistics have struggled to stay solvent.
Together, these pressures created a financial environment that made Stache LLC’s wind-down unavoidable.
What the Shutdown Means for California Consumers and Retailers
If Eaze stops operations entirely:
Cannabis retailers will lose a major delivery partner
Many licensed shops rely on Eaze’s marketplace and fleet to reach customers across wide geographic areas.
Customers will face fewer delivery options
Some regions — particularly suburban and rural areas — may see fewer compliant delivery choices.
Competing services may see a surge in demand
Platforms such as:
- Grassdoor
- Emjay
- Leafly Delivery partners
- Direct-to-consumer delivery by retailers
…could all benefit from the vacuum Eaze leaves behind.
The Road Ahead: Critical Decisions Before Year-End
Between now and December 31, several key steps will shape Eaze’s future:
1. Asset sale negotiations
Potential suitors will assess the value of:
- technology infrastructure
- brand equity
- customer database
- driver and logistics networks
- partnerships with retailers
2. Employee transition planning
Over 1,000 workers could be affected if the shutdown proceeds without acquisition.
3. Wind-down logistics
Stache LLC must fulfill legal requirements as it dissolves.
4. State regulatory coordination
Because Eaze operates under various delivery licenses, regulators must approve any transfer or shutdown plans.
Source
- MJBizDaily – reporting on Eaze Technologies’ operational wind-down. Site: MJBizDaily.com
The Decision
Eaze Technologies — once a pioneer and powerhouse in cannabis logistics — now stands on the brink of dissolution. The decision by its parent company, Stache LLC, to wind down operations by December 31, 2024, sends a shockwave through the country’s largest legal cannabis market.
Whether Eaze survives will depend entirely on the emergence of new ownership capable of absorbing its operational backbone and repositioning the brand for long-term sustainability.
For employees, customers, retailers, and the broader cannabis industry, the next few months will determine whether Eaze remains a transformational force — or becomes a cautionary tale of scaling too fast in a volatile and overregulated market.