Uber makes its first entry into the cannabis industry

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Uber Eats customers in Ontario and Canada are soon able to place orders on Uber Eats for cannabis products. This is Uber’s first venture into the market.

The app will allow customers to order cannabis from Tokyo Smoke, and pick it up in the nearest store.

However, the company refused to say if it would roll the offering out further in Canada and the US.

Canada’s marijuana market is worth around CAD$5bn (£3bn; $4bn) a year.

Uber Eats app users must verify their age to be eligible to order. Orders can then be picked up within one hour.

Canadian law makes it illegal to distribute marijuana, even though it has been legalized for use since 2018.

Uber is a long-standing target of the cannabis industry.

Dara Khorowshahi (chief executive) stated in April that the company would consider selling cannabis once this is legal under US law.

Illegal producers

Three years after cannabis was legalized in Canada for recreational purposes, a significant portion of the sales are still controlled by illegal growers. The government has attempted to correct this problem.

Uber claimed that Tokyo Smoke, its partner with Uber, will allow adults to buy legal and safe cannabis. This partnership will also help combat the illegal selling of marijuana.

The Canadian cannabis market will continue to expand in the future, according to industry research firm BDS Analytics. Sales are expected to reach $6.7 billion by 2026.

We will keep an eye on regulations and market opportunities market by market. Uber spokesperson stated that they will continue to monitor changes in local and federal laws. They also plan on exploring opportunities with other merchants, if possible.

As people were locked up at home, the demand for cannabis products increased significantly.

These are also possible options:

Source: BBC.com

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