Tech company Uber will allow users in Ontario, Canada, to order cannabis on its Uber Eats app, marking the ride-hailing giant’s first foray into the booming market.
The Uber Eats app will list cannabis retailer Tokyo Smoke on its store starting today, allowing customers to order their products via the Uber Eats app and pick up at the nearest Tokyo Smoke store. Uber has long set its sights on the premium cannabis market, and CEO Dara Kosrushi told media in April that the company would consider delivering cannabis when its legal status in the United States became clear.
After more than 3 years of legalizing Canadian cannabis as a psychological recreational, the country is trying to fix its fragile market, where illegal cannabis producers control a large share of total sales annually, and the new partnership will help Canadian adults buy legal and safe cannabis, which will contribute to confronting the illegal black market that accounts for more than 40% of the total sales of non-medical cannabis across the country, knowing that cannabis sales in Canada will reach $4 billion in 2021 and are expected to reach $6.7 billion in 2026.
Following the news, the global cannabis stock index MJ ETF rose by 2%, while Uber stock rose 1.2% to $44.78 in premarket trading.