Cannabis consumers in Ontario, Canada can now purchase products for pick-up through the Uber Eats app. The delivery service partnered with a local cannabis retailer to allow consumers to order what they want ahead of time, pay for it, and then pick up their products. Delivery is not available at this time, but Uber believes that it will be available in the future.
The Uber CEO, Dara Khosrowshahi, spoke about the potential future of Uber Eats and cannabis delivery. “When the road is clear for cannabis, when federal laws come into play, we’re absolutely going to take a look at it.”
This endeavor took several months longer than expected, but federal laws, as well as state and provincial laws in the U.S. and Canada have complicated things. Only 19 states in the U.S. have legalized recreational cannabis. Of those 19, only California, Nevada and Oregon allow for delivery options. This severely limits the amount of sales UberEats could do in the U.S.
With the U.S. currently debating cannabis legalization, Khosrowshahi said the company is keeping a close eye on where legalization is headed. “We see so much opportunity out there, and we’re going to focus on the opportunity at hand,” she said.
Currently, Denver, Colorado offers a cannabis delivery service through its own network. However, it is only available within city limits and only a few retailers have been approved.
Illegal Market
It’s been three years since Canada nationally legalized recreational cannabis. And while not all fears of legalization came true, there are still several concerns. The biggest problem the cannabis market faces in Canada is the black market. Experts say the illegal cannabis market accounts for over 40 percent of all non-medical cannabis sales nationally.
This is huge considering the total sales in 2021 will be around $4 billion. By 2026, with the help of Uber Eats ordering and pick-up system, the cannabis market in Canada could reach upwards of $6.4 billion.
Should retailers and more provinces pursue cannabis delivery options in Canada, we will update you with the latest.
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