Eaze, the California cannabis delivery giant once heralded as the “Uber of weed” with a $700 million valuation, will cease all operations by December 31. CEO Cory Azzalino confirmed the shutdown in a LinkedIn post, signaling the end of a company that once symbolized the state’s booming legal marijuana market.
Nearly 500 employees will lose their jobs as a result of the closure, according to Jim Araby, a vice president at United Food Commercial Workers International Union. The company notified union representatives that some workers might receive offers from a new ownership group in 2025, though no guarantees exist.
The collapse follows a brutal series of failures across California’s legal cannabis industry. MedMen, a retail chain once worth $1.6 billion, folded earlier this year. Herbl, formerly the state’s largest distributor, shut its doors in 2023. These bankruptcies trace back to an economic crisis fueled by steep marijuana taxes and a thriving illicit market that sells untaxed products.
Eaze launched in 2014 and rode the wave of investor enthusiasm after California legalized recreational cannabis in 2018. The company quickly became the world’s largest pot delivery service. Trouble soon followed. A former CEO pleaded guilty to bank fraud in 2021. Meanwhile, ownership battles erupted when tech billionaire James Henry Clark, a Netscape co-founder, invested heavily and later tangled with other stakeholders in court.
Clark loaned Eaze $36.9 million in 2022, only to foreclose on the business this spring. His company, FoundersJT, purchased Eaze at auction for $54 million in August, seizing complete control. Now, the new owners plan to evaluate whether to resurrect the brand under a different corporate structure and management team.
Araby described the situation as evidence of “continuing dysfunction” in California’s legal cannabis framework. He pointed to crushing tax burdens and weak enforcement against illegal operators as the core problems. The union leader called the loss of approximately 500 union positions a clear warning for state lawmakers.
The Newsom administration appears to have taken notice. Nicole Elliott, director of California’s Department of Cannabis Control, acknowledged Azzolino’s LinkedIn announcement with a like, a small signal that Sacramento may be watching the industry’s unraveling closely. Whether this shutdown prompts legislative action remains uncertain.
