Kat Savoy, CEO and Co-Founder of Drop – Interview Series

As with many industries reliant on successful delivery logistics, building a digital platform that both streamlines and expedites cannabis delivery in a fully compliant manner requires far more than basic coding. Creating such an ambitious platform demands intricate software engineering alongside insight from experts outside the tech space, including legal and regulatory professionals. With so many moving parts across both wholesale and retail delivery, designing software to expedite the process while adhering strictly to state regulations is a complex undertaking.

For a deeper look at what it takes to build a comprehensive platform like this—and how innovative technology can unlock new opportunities for social equity-owned cannabis brands—mycannabis.com spoke with Kat Savoy, CEO and Co-Founder of Drop.

What experiences at CU Boulder were most useful, and which courses gave you the best advantage when starting Drop?

I don’t know that it was any one specific course as much as the overall experience of being in the business school at CU Boulder. I majored in HR, which taught me a lot about what motivates people, how different personalities work together, and how to manage people in a corporate environment. It was also where I started developing the networking and relationship-building skills that have stayed with me throughout my career.

How did your involvement in these organizations contribute to your professional expertise?

I wouldn’t necessarily say the organizations gave me greater professional expertise, but they helped me understand the importance of building long-lasting relationships. Going to CU Boulder also gave me a unique perspective on cannabis. I started there in 2011, when Colorado was still a medical-only market, so I’ve had a front-row seat to how the industry and consumer habits have evolved. I’ve always watched that evolution through a business lens, and I don’t know that I would have had the same perspective if I hadn’t gone to CU Boulder.

What effective team-management strategies did you develop?

For me, being an open book as a manager was really important. I wanted the team to have an open dialogue, stay aligned on projects, and feel encouraged to collaborate. Because our teams were spread across the world, we also prioritized face-to-face virtual meetings. Creating that culture and maintaining a real sense of connection became especially important when you’re managing large, distributed teams.

When it comes to digital marketing strategies, what universally successful strategies did you create for your clients? As digital platforms changed drastically, how did you ensure those strategies and projects stayed successful?

We spent a lot of time on audience segmentation and developing customer personas before we ever launched a campaign. Knowing exactly who we were trying to reach, what motivated them, and where to reach them made our campaigns significantly more productive. As platforms changed, we followed the data, paid attention to what was actually working, and adjusted quickly. The platforms and tactics may change, but knowing your audience is pretty universal.

When did you first notice the need for a platform like Drop? What experience did you have with Colorado cannabis businesses previously?

The idea for Drop really started about eight months to a year ago. As a cannabis consumer living in Denver, I wanted to order delivery one day and realized there wasn’t an easy way to do it, even though I’d experienced cannabis delivery in other markets. My entrepreneurial brain kicked in, and I started researching why. That led me into the regulatory landscape, the role of social equity transporters, and the gaps that existed in the market.

At the time, my experience with Colorado cannabis businesses was primarily as a consumer. What I did have was years of hands-on experience building and operating a business through my family company, FLB Limited. The products may be completely different, but the fundamentals of sales, networking, simplifying a complicated concept, building teams, and knowing where to invest translate across industries.

How did you navigate the marketplace regulations, and what went into building Drop from a legal and technological perspective?

One of the first teams we sought out was our legal team at Vicente LLP because we knew the legal and regulatory framework needed to shape the product from day one. They helped us navigate the regulations, contracts, and structure of the marketplace as we built Drop.

On the technology side, Teri has built an incredibly complex operating system in a remarkably short amount of time. Her experience at Amazon and IonQ is really unique, and the speed and quality of her work are unlike anything I’ve experienced before. I’m used to hearing tech teams say, “That’s not possible.” With Teri, I can ask if something is possible, she nods, and we build it. She makes it look easy, but there is an immense amount happening under the hood.

How does Drop help operators navigate compliance and reduce their risk?

Compliance carries a huge amount of responsibility in cannabis, and a seemingly small mistake can have serious consequences for operators. We spoke with a licensed transporter who faced significant licensing consequences and penalties after an employee incorrectly verified an ID. Drop is designed to prevent mistakes like that. We built ID scanning directly into the Drop Driver app and designed the workflows to essentially force compliance through the process. That helps protect operators in areas where they’re particularly vulnerable and takes some of that burden off their shoulders.

How will Drop benefit social equity operators?

Drop benefits social equity operators in multiple ways. On the technology side, we take on much of the administrative heavy lifting, from Metrc manifest creation to payment processing and other operational requirements. But what really differentiates Drop is the business support behind the technology. We’re building relationships with dispensaries, helping open those doors for transporters, and marketing Drop to create consumer demand.

We’re also working directly with social equity transporters in Denver through regular working sessions on things like business projections and responsible scaling. We want to help them build sustainable businesses, not just give them technology and send them on their way. Ultimately, their success is our success.

What are your plans for expanding Drop into other cannabis markets?

Teri and I have always envisioned Drop eventually expanding into other legal and medical cannabis markets. One of the advantages of the platform is that it operates as a rules engine, which allows us to configure it around the requirements of different states as we enter new markets. Vicente LLP’s national cannabis regulatory experience is also an important resource as we plan that expansion. But we don’t want to grow just for the sake of growing. Our priority is to make sure our first market is operating exceptionally well before we move into the next one.

As the American cannabis industry expands and regulations change, how do you see Drop evolving?

As the American cannabis industry evolves, Drop will evolve with it. We want input and feedback from regulatory bodies in every market we operate in or are considering entering. We want to work collaboratively with regulators to build a viable cannabis delivery marketplace that respects the regulatory framework while still creating a great experience for operators and consumers.

Thank you for joining us, Kat! For more information on Drop, please visit its website.