Uber Eats allows cannabis ordering in Ontario

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A spokesperson for Uber Eats said that on Monday, Uber Eats will list the cannabis retailer Tokyo Smoke on its market, after which customers can place orders from the Uber Eats app and pick them up at the nearest Tokyo Smoke store.

Uber already provides alcohol through its Eats division and has been setting its sights on the booming cannabis market for some time. Its CEO Dara Khosrowshahi told the media in April that the company will consider providing cannabis when the legal coast of the United States is clear.
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More than three years after the legalization of recreational marijuana in Canada, the country is trying to repair its troubled marijuana market, and illegal producers still control a large portion of total annual sales.

Uber said on Monday that the partnership will help Canadian adults buy safe and legal marijuana and help combat the illegal underground market, which still accounts for more than 40% of all non-medical marijuana sales in the country.

The global cannabis stock tracker MJ ETF rose 2%, while Uber’s stock price rose 1.2% to $44.78 in premarket trading.

According to data from industry research company BDS Analytics, Canadian cannabis sales will reach 4 billion U.S. dollars in 2021 and are expected to grow to 6.7 billion U.S. dollars by 2026.

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When asked about the possibility of expanding to other provinces in Canada or the United States, an Uber spokesperson said that “there is currently no more content to share.”

“We will continue to pay close attention to regulations and opportunities in various markets. As local and federal laws develop, we will explore opportunities with businesses operating in other regions,” an Uber spokesperson told Reuters.

Stricter regulations and lockdowns caused by the pandemic last year have stimulated demand for cannabis-related products from customers who are trapped at home and have limited entertainment options.



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