Sugarmade Provides Corporate Update as Nug Avenue Sees Accelerating Growth Ahead of Further Expansion
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NEW YORK, Dec. 08, 2021 (GLOBE NEWSWIRE) -- via InvestorWire – Sugarmade, Inc. (OTCMKTS: SGMD) (“Sugarmade”, “SGMD” or the “Company”) an emerging leader in the vertically integrated California cannabis marketplace, is pleased to provide this update to its shareholders as the Company moves toward new growth initiatives while continuing to expand organically within the framework of its primary operating vision.
Nug Avenue Performance. The Company currently operates one Nug Avenue hub located in the Los Angeles metropolitan area. This initial location has grown dramatically since its inception in March 2021. By the end of June 2021, it had more than 10,000 unique members. That pace of growth has accelerated over recent months and the Company now has nearly 25,000 unique members.
Jimmy Chan, Sugarmade CEO, stated, “We have seen rapid and accelerating organic growth in customers at our initial Nug Avenue location since we opened the doors in March. The good news is that this trend survived reopening, with a reduction in pandemic-related measures and regulations having no impact on our growth. That provides a very healthy backdrop as we look ahead to opening new locations, upgrading our service, and verticalizing our model through our own cultivation resources.”
Nug Avenue Expansion. All documentation toward the opening of the Company’s second Nug Avenue location has already been submitted. The Company is now awaiting specific instructions about undergoing mandatory inspections and steps related to planning and approvals before it can move forward and officially open the new location.
In addition, management is currently in the process of evaluating additional properties for further expansion, including outside of the Los Angeles marketplace.
New Technology. The Company has also implemented new cannabis delivery technology to establish a competitive advantage in its core delivery zone: the Onfleet last mile delivery solution with Blaze. Onfleet provides AI-based automated dispatch, automatic SMS customer notifications with accurate ETAs, real-time driver tracking, proof-of-delivery, feedback collection tools, and powerful analytics to ensure every delivery is an optimal experience.
In the first month of adoption, Nug Avenue's average delivery time reduced to 41.51 minutes, and customer satisfaction rose to 4.83 out of 5 stars on average.
“The industry average is measured in hours when it comes to cannabis orders in the California delivery marketplace,” Chan continued. “We are working to shorten that window and gain an edge to drive market share gains. This technology provides everything from route optimization to real-time delivery updates, saving us time and money while producing higher customer satisfaction in the process.”