UBER EATS Collaboration to sell Marijuana in Ontario

Marijuana and Uber Eats

Quick Introduction:

Most people know about Uber Eats. If you know what Uber Eats is, you can skip to the next paragraph and start reading the article but if you don’t know what Uber Eats is, then here is a quick introduction on Uber Eats and Tokyo Smoke before we begin our Blog.

Uber Eats :

Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. Users can read menus, reviews, ratings, order, and pay for food from participating restaurants using an application on the iOS or Android platforms or through a web browser. Users are also able to tip for delivery.

Tokyo Smoke:

Tokyo Smoke is a Canadian lifestyle brand owned by Canopy Growth that focuses on the legal recreational cannabis industry. The company was co-founded by father and son Lorne and Alan Gertner in 2015.

Collaboration between Uber Eats and Tokyo Smoke:

Uber Canada has announced a collaboration with cannabis merchant Tokyo Smoke to allow Ontario residents to buy marijuana through Uber Eats. While Uber began as a ride-hailing service, Uber Eats is a brand extension that delivers restaurant meals to customers’ homes. Uber Connect, the company’s package delivery service, is also available. Although medicinal marijuana has long been lawful in many areas around the United States and worldwide, recreational marijuana has just recently been legal in the United States. Medical cannabis became allowed in Canada in 2001, and in 2017 recreational cannabis usage was legalized.


Marijuana Industry:

Uber Eats users in Ontario, Canada, will soon be able to order cannabis items using the app, representing the company’s first entry into the marijuana industry. Clients will place orders for cannabis retailer Tokyo Smoke in a dedicated section of the app and pick them up from the local location. The company declined to comment on whether it plans to expand the product throughout Canada and the United States. The Canadian marijuana market is valued at around CAD$5 billion (£3 billion; $4 billion) each year. According to the company, Uber Eats users would have to verify their age on the app before picking up their order within an hour. Although marijuana usage has been legal in Canada since 2018, it is still unlawful to deliver it. For quite some time, Uber has had its sights set on the growing cannabis industry.

In April, chief executive Dara Khosrowshahi said the company would consider delivering cannabis once permitted under US law.

The following year, Canada approved the federal Cannabis Act, making it just the second country after Uruguay to explicitly legalize the production, possession, and use of cannabis, implying that recreational use of the material is no longer illegal in the country. Tokyo Smoke is one of the biggest and well-known names in North America, and the partnership with Uber will now allow users to buy directly through Uber Eats. 

New York became the latest state to legalize recreational marijuana on March 31, with Gov. Andrew Cuomo signing the legislation. The transportation of marijuana products is also permitted under the legislation. Cannabis delivery services are now available in California, Nevada, and Oregon to persons 21 years of age or older with no limitations. For the time being, the firm stated that it would concentrate its efforts on its present delivery choices in significant areas such as food and alcohol.

“We see so much possibility out there,” Khosrowshahi added, “and we’re going to focus on the opportunity at hand.”



Uber Eats and Analysis of the market:

Even though the selling of cannabis for recreational purposes became legal in Canada three years ago, unauthorized producers continue to manipulate a significant percentage of sales. The administration has been working to address this issue. Uber stated that its collaboration with Tokyo Smoke would assist people in purchasing safe, legal cannabis while combating unlawful vendors. As per industry research company BDS Analytics, the cannabis market in Canada is forecast to expand further in the coming years, with sales expected to hit $6.7 billion by 2026.

“We will continue to monitor rules and opportunities on a market-by-market basis. And, when local and federal regulations change, we will look for opportunities with businesses in other areas, “According to an Uber official.

As individuals were trapped at home due to lockdowns, demand for cannabis products increased dramatically last year. Uber shares rose more than 2% on Monday after the firm reported record gross bookings for the month of March, indicating an increase in demand for its ride-hailing service.



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