Uber Eats will allow its users in Ontario to order cannabis

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(Reuters) -

Uber will allow users in Ontario, Canada, to order cannabis through its Uber Eats app, marking the rideshare giant's foray into this booming business, a spokesperson reported Monday. of the company.

Uber Eats will list cannabis retailer Tokyo Smoke in its market on Monday, after which customers will be able to order from the Uber Eats app and then pick them up at their nearest Tokyo Smoke store, the spokesperson said.

• Oregon State Police seize $ 500 million in marijuana

Uber, which already delivers alcoholic beverages 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 legal issues in the United States are clearer.

After more than three years of legalizing recreational cannabis in Canada, the country is trying to fix its ailing marijuana market, in which illegal producers continue to 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.

Tracking global cannabis stocks MJ ETF rose 2%, while Uber shares rose 1.2% to $ 44.78 in pre-market trading.

Cannabis sales in Canada will reach $ 4 billion in 2021 and are projected to grow to $ 6.7 billion in 2026, according to data from industry research company BDS Analytics.

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• The cannabis industry flourishes in part thanks to the momentum during the pandemic

An Uber spokesman said there is "nothing more to share at this time" when asked about the possibility of expansion in other Canadian provinces, or in the United States.

"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 spokesperson told Reuters.

Tighter mandates and pandemic-induced shutdowns last year spurred demand for cannabis-related products from customers who were stuck at home with limited entertainment options.

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