Uber Users In Canada Can Now Legally Order Marijuana Through The App

Cannabis illustration. (Unsplash/budding))

JAKARTA - Ride-hailing giant Uber is making its first inroads into the booming cannabis business market, by allowing users in Ontario, Canada to order marijuana through the Uber Eats app.

In collaboration with Tokyo Smoke, Uber registered the retail marijuana company in its service Monday this week. After that, customers can order marijuana through the Uber Eats app and then pick it up at the nearest Tokyo Smoke outlet.

Uber, which has been delivering liquor through its Eats unit, has been eyeing the burgeoning cannabis market for some time now. CEO Dara Khosrowshahi told the media in April that the company would consider shipping marijuana when marijuana was legalized in America.

With more than three years into Canada's recreational marijuana legalization, the country is seeking to fix a troubled cannabis market, where illegal producers still control a large proportion of total annual sales.

The partnership will help Canadian adults buy safe legal marijuana, helping to combat the underground illegal market that still accounts for more than 40 percent of all non-medical marijuana sales nationwide, Uber said Monday.

To note, cannabis sales in Canada are estimated to reach $4 billion in 2021 and are expected to grow to $6.7 billion by 2026, according to data from industry research firm BDS Analytics.

Asked about possible expansion into other Canadian Provinces, or in the United States, an Uber spokesperson said there was "nothing more to share at this time".

"We will continue to closely monitor regulations and opportunities market by market. And as local and federal legislation evolves, we will explore opportunities with merchants operating in other regions," an Uber spokesperson told Reuters.

To note, demand for cannabis-related products experienced a huge spike due to the COVID-19 pandemic last year, in which many customers were stuck at home with limited entertainment options.