Medical marijuana ordering app Nugg launched with unusual funding source

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Starting at 4:20 p.m. Monday, patients in Los Angeles and Orange counties will be able to order medical marijuana and schedule deliveries or pickups through a new app called Nugg.

The Web-based app was developed by a trio of USC students who raised $100,000 not from friends and family, the usual way to get a business started, but by referring riders to the ride-hailing service Lyft. Lyft pays a commission of $10 to $20 each for rider referrals; Alex Milligan and two friends created a network of referral hunters, mostly on college campuses, and split the proceeds earned through signing up 30,000 riders.

Last year, Milligan, Collin Mann and Kam Babazade began putting their newfound wealth toward developing Nugg, an online ordering system for medical marijuana. Mann and Babazade graduated, and Milligan is in his last semester. Their company is launching April 20 — a worldwide day of...

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URL: 
http://www.latimes.com/business/technology/la-fi-tn-nugg-marijuana-20150420-story.html?track=rss