Uber Technologies Inc (NYSE: UBER) has now entered the cannabis market. The company has announced that it will allow its customers in Ontario, Canada, to order cannabis on its Uber Eats app. Uber will be partnering with Tokyo Smoke, a cannabis retailer. Through Uber Eats, customers will place their order which they can pick at any of Tokyo Smoke’s dispensaries.
Customers would get their orders an hour after placing them. The store owners would then require them to show valid identification before allowing them to take their orders. Uber hopes that the collaboration would eliminate illegal cannabis markets by allowing Canadians to buy legal and safe products.
Canada has been battling with the illegal Cannabis market
According to the General Manager of Uber Eats Canada, Lola Kassim, working with industry leaders such as Tokyo Smoke will give Canadians options for purchasing legal products. Although Uber Eats cannot legally deliver cannabis to Canadian consumers, it is legal for payment service providers to accept transactions.
Cannabis in Canada has been legal since 2018, when the country became the first G20 nation to legalize adult-use cannabis. Despite this, the government, under Justin Trudeau, is still having a tough time with the illegal cannabis market, which accounts for 40% of cannabis sales.
The cannabis market in Canada has seen tremendous success. For instance, it was $4 billion in 2021. BDS Analytics, an industry research firm, speculated that the market would be worth $6.7 billion by 2026.
Uber plans to delve into the cannabis market as it becomes legal
A spokesperson for Uber has said that the company will keep monitoring opportunities and regulations for every market. Moreover, the company will find opportunities to Parker with other merchants as the laws around cannabis continue to change. Uber has been evaluating the cannabis market for a long time. The company already delivers food, groceries, and alcohol.
In April, Dara Khosrowshahi, the CEO of Uber, said that the company would deliver cannabis in the U.S when it was legal. He added that while the company saw many opportunities in the market, it would have to focus on what it can deliver presently. Cannabis use in the U.S is illegal under federal law. However, 18 states, including DC, have made it legal.
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