The archive · Commerce & Marketplaces · Strategic decision · 2014–2024
Eaze's 'Uber of weed' bet: $700M valuation, lender foreclosure, Chapter 7 in 2025
Eaze built California's biggest on-demand cannabis delivery brand on $255M, then lenders foreclosed its assets in 2024 and it filed Chapter 7 in March 2025.
Eaze Technologies (Stachs LLC)
What the business is
Eaze was an on-demand cannabis delivery platform: users order from licensed dispensaries through its app and get products delivered, with Eaze running the technology, logistics and delivery network across California.
Starting capital：About $255M in venture capital with a peak valuation near $700M (sfist, 2024-10-07).
How it started
Eaze launched in San Francisco as an on-demand cannabis delivery app — a company that called itself the 'Uber of Weed' — and grew with California's legal market into one of the state's biggest delivery services, raising about $255M from investors including Snoop Dogg along the way.
What happened
Eaze scaled to a $700M valuation and a statewide delivery operation, but the California cannabis market turned: wholesale prices collapsed, margins compressed, and investors disagreed about the path forward. In October 2024 CEO Cory Azzalino told employees that lenders had foreclosed the company's assets on August 6, 2024 and that parent Stachs LLC would wind down operations, with full closure expected around December 31, 2024 and roughly 500 jobs lost.
How it ended up
Eaze ceased operations around December 31, 2024. Eaze Technologies filed a voluntary Chapter 7 petition on March 21, 2025 in the Northern District of California (case 25-30219), reporting assets of $0–$100K against liabilities of $1M–$10M and 50–99 creditors.
Background
Eaze was the 'Uber of Weed': an on-demand cannabis delivery company that built its app around a simple promise — order from a licensed dispensary and get it delivered fast. It grew with California's legal market into one of the state's biggest delivery services, raised about $255 million in venture capital from investors including Snoop Dogg, and at its peak was valued near $700 million.
The bet was that cannabis would behave like ride-hailing: an app-based experience would let the platform own the customer relationship while dispensaries stayed commodity suppliers. Eaze scaled statewide, but the underlying market turned against it — wholesale cannabis prices collapsed, margins compressed, and the regulated retail chain left little room for a middleman to profit.
On October 7, 2024, CEO Cory Azzalino told employees that lenders had foreclosed the company's assets on August 6, 2024 and that parent Stachs LLC would wind down operations, with full closure expected around December 31, 2024. SFGate estimated that some 500 employees would lose their jobs, and the news was covered by KRON4, sfist, MJBizDaily and Benzinga the same week.
Eaze ceased operations around December 31, 2024, and Eaze Technologies filed a voluntary Chapter 7 petition on March 21, 2025 in the Northern District of California, reporting assets of $0–$100,000 against liabilities of $1M–$10M. The once-$700M delivery unicorn ended not with a buyer, but with a liquidation case that remained open into 2026.
What has to be true
- Eaze bet that legal cannabis delivery would follow ride-hailing: a fast, app-based experience would make the platform the category winner while dispensaries stayed commodity suppliers.
- It raised $255M on that thesis and reached a $700M valuation, but the product underneath was a regulated commodity whose wholesale price collapsed as California oversupplied.
- The economics depended on order volume and fees across a thin-margin retail chain; when the market turned, lenders chose to foreclose the assets in August 2024 rather than refinance the company.
- Eaze's scale made the failure visible — roughly 500 workers lost their jobs and the state's biggest delivery brand shut within months, proving that consumer brand alone did not protect the business.
What can be applied
Marketplace scale is not a moat: Eaze owned the app and the customer, not the supply or pricing of the commodity it moved, so when cannabis prices collapsed it had no margin left.
Aftermath
As of September 2, 2026 the original Eaze business is gone: the wind-down announced in October 2024 completed around December 31, 2024, and Eaze Technologies' Chapter 7 case (25-30219, Northern District of California) remains open, with the debtor reporting assets of $0–$100K against liabilities of $1M–$10M and 50–99 creditors. The CEO had said the new ownership group could choose to reopen the brand under a new corporate structure, but the venture-backed delivery company that once carried a $700M valuation was liquidated after its lenders foreclosed.
Sources
- SF-Based Weed Delivery Service Eaze, Once Valued at $700 Million, Shutting Down By Year's End
- EAZE TECHNOLOGIES, INC. Chapter 7 Bankruptcy (case 25-30219)
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