Uber is entering the cannabis delivery in Canada with Uber Eats users in Ontario soon able to order items through the app.
Customers will be able to place orders for cannabis shops Tokyo Smoke through the app and then pick them up at a local store.
the app users will be required to verify their age before they can pick up their orders within an hour, the company said.
Although cannabis usage has been legal in Canada since 2018, it remains illegal to deliver it. Uber has been eyeing the burgeoning cannabis sector for some time now.
Dara Khosrowshahi, the business’s CEO, stated in April that the company will consider distributing cannabis once it is legal in the United States.
Canada legalization cannabis for recreational use three years ago. The cannabis market is estimated to be valued at approximately CAD$5 billion (£3 billion; $4 billion) per year and is expected to continue growing in the coming years, with BDS Analytics forecasting that sales will reach $6.7 billion by 2026.
In 2020, demand for cannabis products increased dramatically as a result of people being trapped at home during lockdowns.
Despite the legalization of cannabis illegal producers continue to control a sizable portion of sales. This is an issue that the government has been attempting to address.
Uber stated that its collaboration with Tokyo Smoke will assist adults in the country in purchasing safe, legal cannabis, thereby combating illegitimate vendors.
“We will continue to monitor market-by-market regulations and opportunities. Additionally, as local and federal laws evolve, we will look for chances to work with merchants in other places ” according to an Uber spokeswoman.