Uber Eats has partnered with cannabis retailer Tokyo Smoke for online cannabis ordering in Ontario, Canada — the company’s first foray into the cannabis industry, Reuters reports. Customers can order cannabis from the Uber Eats app and pick it up at their local Tokyo Smoke shop, the report says.
The Tokyo Smoke option went live on the Uber Eats app Monday morning.
On the possibility of an expansion into more Canadian provinces or in U.S. states that allow cannabis for adult use, an Uber spokesperson told Reuters that the company has “nothing more to share at this time.”
“We will continue to watch regulations and opportunities closely market by market. And as local and federal laws evolve, we will explore opportunities with merchants who operate in other regions.” — An Uber spokesperson via Reuters
In April, CEO Dara Khosrowshahi indicated that the company would eventually get into the cannabis space “when federal laws come into play.” Cannabis is federally legal in Canada, while there are two bills in the U.S. Congress to enact the reforms.
In October, Uber finalized its $1.1 billion deal to acquire on-demand alcohol Drizly. That deal did not include Drizly’s cannabis arm Lantern.
The popularity of cannabis delivery services has been on the rise since the declaration of the coronavirus pandemic on March 13, 2020. In their “State of Cannabis 2020” report, Cannabis delivery company Eaze found a near-60% increase in new customer sign-ups, a 44% increase in the number of first-time deliveries, and 15% and 14% increases in average order size and value, respectively.
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