Uber Eats users in Ontario, Canada will soon be able to buy cannabis items using the app, marking the company's first entrance into the cannabis industry.
Customers will be able to place orders for cannabis shop Tokyo Smoke in a specialised part of the app and pick them up at a nearby shop.
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Annually the cannabis market is valued at roughly CAD$5 billion equating to £3 billion or $4 billion. It is likely to grow to $6.7 billion (£5 billion) in 2026 - according to data from industry research firm BDS Analytics.
Users of Uber Eats will have to verify their age on the app before being able to pick up their orders within an hour, according to the firm.
As per regulations, they will also have to present ID upon collecting.
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Canada was the first G20 country to legalise recreational marijuana in 2018. The Justin Trudeau administration, on the other hand, is still grappling with the country's illicit cannabis sector, which accounts for around 40% of overall sales.
The corporation aims to move people away from the illicit market.
“We are partnering with industry leaders like Tokyo Smoke to offer safe, convenient options for people in Ontario to purchase legal cannabis,” Lola Kassim, general manager of Uber Eats Canada, said in a statement.
“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 told Reuters.
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The company refuses to say if it plans to expand the service throughout Canada, beyond Ontario, and the United States.
Users who were stuck at home with few entertainment alternatives due to the pandemic's tougher restrictions and lockdowns last year increased demand for cannabis-related items in Canada.
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Aneesa Ahmed is Mixmag's Digital Intern, follow her on Twitter