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• Cannabis sales in Canada are expected to grow to $6.7 billion in 2026
• Though Uber is launching its service for Ontario, it has not yet laid out its plan for any other Canadian province
Uber Technologies Inc will allow its customers in Ontario, Canada, to order cannabis through the Uber Eats app, marking the ride-hailing giant’s venture into the growing market.
Uber Canada on Monday announced that it entered into an exclusive partnership with cannabis retailer Tokyo Smoke and will list it on a dedicated section in the Uber Eats app’s digital marketplace.
The ride-hailing giant said consumers can place orders for cannabis and accessories and then pick up their purchases at the respective Tokyo Smoke stores.
Mark Hillard, Tokyo Smoke’s Vice President of Operations, said the offering would bring its customers “high-quality products and the very best customer experience,” and the partnership is the “ideal next offering that can be done safely and conveniently on the Uber Eats app.”
The cannabis retailer, which is owned by Canadian pot company Canopy Growth Corp, has almost 50 stores in Ontario, according to its website.
Canada’s cannabis market
Canada, which legalized recreational cannabis more than three years ago, is trying to fix its pot market, where illegal producers still control a large share of total annual sales.
Data from research firm BDS Analytics shows cannabis sales in Canada will total $4 billion in 2021 and are forecast to grow to $6.7 billion in 2026.
Uber said the partnership would help combat the illegal underground market, accounting for over 40% of all non-medical cannabis sales nationally.
The company also cited research data from Public First which shows 1 in 7 cannabis users drive a vehicle within 2 hours of consuming cannabis, and said when Canadian cannabis laws evolve to include delivery, Uber Eats is expected to help decrease impaired driving and improve safety on the road.
Plans for market expansion
While Uber mentioned launching the service in Ontario only, the company has not shared any other details or about the possibility of expansion into other Canadian provinces.
“We will continue to watch regulations and opportunities closely market by market. And as local and federal laws evolve, we will explore opportunities with merchants who operate in other regions,” a Uber spokesperson told Reuters.
In April, Uber’s CEO Dara Khosrowshahi told CNBC that the company, which already delivers liquor, will wait for the federal laws to clear the legal coast to deliver cannabis in the U.S.
Picture Credit: NY Post