Uber will allow users in Ontario, Canada, to order cannabis on its Uber Eats app, marking the rideshare giant’s foray into the burgeoning business, a company spokesperson said on Monday.
Uber Eats will list cannabis retailer Tokyo Smoke in its market on Monday, after which customers can order from the Uber Eats app and then pick it up from their nearest Tokyo Smoke store, the spokesperson said.
Uber, which already delivers liquor through its Eats unit, has had its sights set on the burgeoning cannabis market for some time. Its CEO, Dara Khosrowshahi, told the media in April that the company will consider delivering cannabis when the legal cost is clear in the United States.
More than three years after the legalization of recreational cannabis in Canada, the country is trying to fix its ailing marijuana market, where illegal producers still control a large chunk of total annual sales.
The association will help Canadian adults buy safe and legal cannabis, helping combat the underground illegal market that still accounts for more than 40% of all non-medical cannabis sales nationally, Uber said Monday.
Global cannabis stock tracker MJ ETF was up 2%, while Uber shares were up 1.2% to $ 44.78 in pre-market trading.
Cannabis sales in Canada will total $ 4 billion in 2021 and are projected to grow to $ 6.7 billion in 2026, according to data from industry research firm BDS Analytics.
When asked about the possibility of expansion to other Canadian provinces, or the United States, an Uber spokesperson said that “there is nothing more to share at this time.”
“We will continue to closely monitor market-by-market regulations and opportunities. And as federal and local laws evolve, we will explore opportunities with merchants operating in other regions,” the Uber spokesman told Reuters.
Tighter mandates and closures induced by last year’s pandemic spurred demand for cannabis-related products from customers who were stuck at home with limited entertainment options.
