Uber takes its 1st steps in the cannabis market

Uber is making its first inroads into the cannabis market as Uber Eats users in Ontario. Canada, will soon be able to order cannabis products on the app. Customers can order in a dedicated area of ​​the Tokyo Smoke retailer’s app and then pick it up at a nearby store.

The company did not want to comment on launching the offering in Canada and the United States. The Canadian cannabis market costs an estimated $5 billion (£3 billion; $4 billion) annually. Uber Eats users will need to check their age on the app and then receive their order within an hour, the company said.

Although marijuana has been legal for use under Canadian law since 2018, it is still illegal to supply it.

Uber has been targeting the booming cannabis market for a while. In April, CEO Dara Khosrovshahi said the company would consider supplying marijuana as soon as US law allows it.

Although the sale of recreational marijuana became legal in Canada three years ago, illegal producers still control most of the sales. This is what the government is trying to fix. Uber says its partnership with Tokyo Smoke will help seniors in the country buy safe. Legal marijuana by fighting illegal sellers.

The Canadian cannabis business is expected to grow in the coming years. With industry research firm BDS Analytics forecasting sales to grow to $6.7 billion by 2026.

“We will continue to monitor regulations and market opportunities closely. And as local and state laws evolve, we will explore opportunities with vendors operating in other regions,” an Uber spokesperson said.

The demand for cannabis products has rise significantly over the past year as people are blocked at home during the blockade.