DENVER, CO. May 11, 2015 – MassRoots announced in a press release today that its mobile app user base has now topped 325,000 and 110 million interactions have occurred over its network. A pot-focused social networking app that lets cannabis enthusiasts connect and share pics, MassRoots seeks to position itself as one of the first national brands in the cannabis industry.
College kids started MassRoots two years ago on $17,000 credit card debt. Now the company trades as a penny stock worth a look. Co-founder and CEO, Isaac Dietrich describes their beginnings in terms of an ah-ha! moment he had with Tyler Knight in his college apartment. The two came up with the idea of a cannabis social network. Hyler and Stewart Fortier joined forces to design and develop the App. In a website statement about the company’s brief history, Dietrich said: “I maxed out $17,000 in credit cards to get a cannabis social network off the ground. By all accounts, risky decisions. It wasn’t the fear of failing that motivated us, but the fear of missing out on an opportunity to shape the development of an entire new industry.”
After raising $1.3 million in funding through a pair of investment rounds, MassRoots now trades as a penny stock (OTCQB: MSRT), with a price that has fluctuated between $1-7 over the past year. In April the company took an equity position in a full seed-to-sale system, Flowhub, to enable expansion of the the services available to MassRoots’ users and dispensaries.
Dietrich said in a press release at the time that the seed-to-sale software market is dominated by MJ Freeway and BioTrackTHC, which he described as “antiquated systems that regularly crash and impede dispensary and grow facility operations.” Dietrich added that partnering with a seed-to-sale system will “give MassRoots’ users access to live pricing, inventory, and an order ahead system. At the same time, Flowhub will be streamlining dispensaries’ operations and enabling them to target ads to specific customers based on purchasing patterns and social activity.”
MassRoots was exiled from Apple’s App Store earlier this year until it added a geo-restricting function limiting its users to the 23 states where medical marijuana is legal.
In an interview with Fortune magazine in February, Dietrich said MassRoots could see $1 million in monthly revenue within two years. Commenting today, Dietrich said the company is moving toward this target. “Right now, our goal is to capture as much market share of cannabis consumers and businesses as possible. We already have one of the largest communities and social followings in the industry; over the next several months, we’re going to extend that lead as much as possible,” Dietrich said. “Specifically, we expect to surpass 500,000 users during Q3 2015 and 1 million users during Q1 2016.”
Over the next several weeks, MassRoots expects to release in-app direct messaging, expanded business profiles and new user discovery features that will further improve the platform and enhance reader appeal. Via PR Newswire, the company said, “We believe MassRoots’ two closest competitors are Leafly and WeedMaps, a strain resource guide and dispensary locator service, respectfully. As services and not social networks, they lack the daily and weekly recurring usage that drives long-term advertising and shareholder value. MassRoots expects to exceed Leafly’s and WeedMaps’ current monthly revenues within the next 18 months.”