Uber is taking its first step into the cannabis market

Uber is making its first foray into the marijuana market as Uber Eats users in Ontario, Canada will soon be able to order cannabis products through the app.

Customers can place orders in a special area of ​​the app for cannabis retailer Tokyo Smoke and then pick them up at a nearby store.

The company refused to wonder if it would continue to roll out the offering in Canada and the United States.

Canada’s marijuana market is valued at around CAD 5 billion (£ 3 billion; $ 4 billion) a year.

Uber Eats users will need to check their age on the app and then be able to pick up their orders within an hour, the company said.

Although marijuana has been legal to use since 2018, it is still illegal to supply it under Canadian law.

Uber has long had its sights on the booming cannabis market.

In April, CEO Dara Khosrowshahi said the company would consider distributing cannabis as soon as US law allows it.

Illegal producers
Although recreational cannabis sales became legal in Canada three years ago, illegal producers still control a large portion of sales. This is something the government is trying to remedy.

Uber said its partnership with Tokyo Smoke will help adults in the country buy safe, legal cannabis and fight illegal sellers.
Canada’s cannabis market is forecast to continue to grow in the coming years, with industry research firm BDS Analytics forecasting sales to grow to $ 6.7 billion by 2026.

“We will continue to monitor the regulations and opportunities closely, market by market. And as local and state laws evolve, we’ll explore opportunities with vendors operating in other regions, ”said an Uber spokesman.

Demand for cannabis products rose significantly over the past year as people were stranded at home during the lockdown.



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