Eaze Technologies, Inc., once billed as the “Uber of weed,” filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Northern District of California on March 21, 2025 (Case No. 25-30219). Court records show a voluntary Chapter 7 with assets listed in the 0–100,000 range and liabilities between $1–10 million. READ MORE: Inforuptcy
The filing capped a tumultuous 12 months. Eaze announced mass layoffs and a shutdown plan in October 2024, then raised $10 million in November to relaunch parts of the business, including delivery hubs and former Green Dragon retail sites. By January 1, 2025, a new entity, “Eaze, Inc.”, had begun operating after the old company wound down on December 31, 2024—a classic “oldco/newco” split in which many assets were transferred to creditors and subsequently operated by a successor. READ MORE: SFGATE
In September 2025, the reconstituted brand even opened a San Francisco storefront at 1685 Haight Street, underscoring that Eaze Technologies, Inc. (the bankrupt debtor) and Eaze, Inc. (the operating successor) are not the same legal entity—even if customers see the same logo. READ MORE: San Francisco Chronicle
Why did Eaze collapse?
1) California’s brutal market math
California’s legal market has been shrinking in dollar terms. Q1 2025 taxable sales fell to a five-year low ($1.08B) amid price compression, persistent illicit competition, and consumer trading down. Analysts and state reports repeatedly cite high taxes and regulatory costs as structural drags.
2) Tax whiplash
State excise tax policy added volatility. California raised the excise tax from 15% to 19% on July 1, 2025, then—after industry blowback—cut it back to 15% effective Oct. 1, 2025 via AB 564. The back-and-forth underscores the planning challenges for low-margin operators like delivery platforms. READ MORE: CDTFA
3) Delivery economics are unforgiving
Delivery adds last-mile costs (drivers, insurance, routing, customer support) on top of already thin retail margins. Eaze also faced labor-relations pressure; California workers threatened an “unprecedented” strike in April 2024 over pay/mileage rates, and supervisors later aired wage concerns. Even if management disputes the figures, the friction highlights how hard it is to maintain unit economics when every mile erodes margin. READ MORE: The Guardian
4) Expansion hangover (Green Dragon)
Eaze’s 2021 acquisition of Green Dragon stretched the company across CA, CO, FL, MI—and then 2024 brought store closures and retrenchment. Integrating multistate storefronts with a delivery marketplace is operationally complex and capital-hungry; the strategy collided with a funding drought and a tougher demand curve.
5) Capital drought + creditor pressure
When venture capital cooled and interest rates rose, distressed sales and creditor takeovers surged across cannabis. Eaze’s case notes asset transfers to creditors before the Chapter 7, a common feature in cannabis restructurings where federal illegality complicates standard bankruptcy and debtor-in-possession financing.
6) Illicit market drag
California enforcement has ramped up, but unlicensed operators remain formidable competitors, undercutting legal delivery services on price and availability. The state reported $29.9M in illegal product seizures in Southern California in one August 2025 sweep alone.
Eaze wasn’t alone: delivery shakeouts are real
Eaze’s bankruptcy follows other delivery failures:
- Grassdoor: ceased operations in Nov. 2023, just before “Green Wednesday.”
- Amuse: shut down its site and operations by 2024/2025. READ MORE: amuse.com
These collapses, paired with store closures statewide, reinforce that stand-alone delivery platforms face higher risk than vertically integrated operators that can pool inventory, control pricing, and spread logistics costs across retail footprints.
What exactly did the bankruptcy do?
- Chapter 7 liquidation (oldco): Eaze Technologies, Inc. entered liquidation in March 2025. The case docket confirms the Chapter 7, judge assignment, creditors’ meeting, and claims deadlines.
- Successor operation (newco): After the oldco shut down on Dec. 31, 2024, Eaze, Inc. began operating Jan. 1, 2025, hiring ~1,100 employees across multiple states and later opening a San Francisco store—illustrating a brand continuity without legal continuity. For consumers, the app still works; for creditors, the estate is in Chapter 7. READ MORE: MJBizDaily
How does this affect the competition?
Short-term consolidation, long-term omnichannel
- Fewer pure-play delivery rivals: With Eaze (oldco) and Grassdoor gone, and Amuse shuttered, remaining delivery specialists face less head-to-head competition—but also a smaller, price-sensitive customer base.
- Retailers doing their own delivery: Many dispensaries now in-house delivery to protect margin. Expect omnichannel models (storefront + delivery + pickup) to keep winning share versus marketplace middlemen. (Eaze’s new storefronts reflect this pivot.)
- Tax relief helps—but not a panacea: The excise tax rollback to 15% (Oct. 1, 2025) gives operators breathing room, yet it won’t erase last-mile costs or the illicit price gap. The industry’s own advisors warn the market remains oversupplied and margin-thin.
- Labor and compliance will shape winners: Operators that standardize routing, manage labor costs transparently, and maintain strict compliance will outlast those treating delivery as a growth hack. Eaze’s labor disputes are a cautionary tale for rivals scaling fleets.
Who’s positioned to benefit?
- Vertically integrated MSOs and regional chains with established storefronts, strong inventory turns, and delivery as an add-on.
- Tech-light dispensaries partnering with white-label logistics rather than running costly, branded delivery marketplaces.
- Niche/local services with tight geographies and loyal customer bases—if they keep drop density high and costs low.
What to watch next
- Claims & recoveries in the Eaze Technologies estate (creditor distributions, asset sales) as the Chapter 7 proceeds under Judge Hannah L. Blumenstiel.
- Eaze, Inc.’s ability to execute an omnichannel strategy—will more brick-and-mortar stores stabilize the brand, or do retail headwinds persist?
- California policy follow-through on the tax rollback to 15% through 2028 and further enforcement against illicit competitors.
- Delivery consolidation—expect acquisitions or partnerships as remaining services seek density and defensible unit economics.
Bottom line
Eaze Technologies, Inc.’s bankruptcy reflects the unforgiving arithmetic of California cannabis delivery—thin margins, tax swings, labor friction, and competition from both illicit sellers and omnichannel retailers. The Eaze brand may live on under a new entity, but the message to competitors is clear: in cannabis delivery circa 2025, scale without margin is a trap—and the survivors will be the operators who treat delivery as disciplined logistics, not just a growth story.