Uber enters into the cannabis business for the first time

Uber Eats users in Ontario, Canada will soon be able to order cannabis goods through the app. Customers will be able to place orders for cannabis retailer Tokyo Smoke in a special part of the app and pick them up at a local store.

The company refuses to comment on whether it plans to expand the service across Canada and the United States. The annual value of the marijuana market in Canada is estimated to be over CAD 5 billion (£3 billion; $4 billion).

According to Uber Eats, users will need to verify their age on the app before being able to pick up their orders within an hour. Although the use of marijuana has been legal in Canada since 2018, it is still unlawful to deliver it.

For a long time, Uber has had its sights set on the expanding cannabis market. Dara Khosrowshahi, the firm’s CEO, stated in April that once cannabis is legal in the United States, the firm will consider distributing it.

Despite the fact that recreational cannabis sales became legal in Canada three years ago, illegal producers still dominate a substantial portion of the market. The administration has been attempting to address this issue.

Uber stated that its relationship with Tokyo Smoke will assist people in the country in purchasing safe, legal cannabis, thus reducing the number of illegal vendors.

The cannabis business in Canada is expected to rise in the coming years, with industry research firm BDS Analytics projecting sales of $6.7 billion by 2026.

“We will continue to examine the rules and opportunities market by market. When local and federal laws change, we’ll search for alternatives with merchants in other locations,” According to an Uber representative.

Last year, as a result of people being stranded at home during lockdowns, demand for cannabis products increased dramatically.

Leave a Reply

Your email address will not be published. Required fields are marked *