In Ontario, Canada, customers may use the Uber Eats application to order a meal, groceries, wine, and even marijuana. Uber has teamed up with cannabis shop Tokyo Smoke to enable consumers to place an order using the Uber Eats application and pick that up in-store. However, shipping is not currently available. While shops can deliver pot in Ontario, third-party shipping from services such as Uber Eats is not yet authorized in Canada. As per a press release, products will be available for pick-up within one hour of being booked. Consumers will be asked to produce their ID when they reach the shop to collect their order, as legally required. Uber, which is based in San Francisco, was noncommittal regarding expanding its cannabis delivery company further.
As Uber Eats learns from their collaboration in Ontario, they’ll continue to closely monitor legislation and possibilities market by market, as local as well as federal regulations develop, Uber Eats will look for opportunities with retailers in additional places. For the time being, Uber has expanded into alcohol delivery in the United States, which brings its own set of regulatory challenges. The firm announced in February that it will acquire Drizly, a liquor delivery service, for USD 1.1 billion in shares and cash. However, Drizly’s subsidiary Lantern, a cannabis delivery firm, was not included in the deal. As delivery became more common during the pandemic, Uber and other food delivery services remain unprofitable, expanded into areas other than food. The marijuana industry is thriving, making it an appealing marketplace.
The worldwide legalized marijuana industry is estimated to reach USD 70.6 billion by 2028. As per Flowhub, a marijuana data organization, recreational cannabis revenues in California, Colorado, Oregon, as well as Alaska were up over 50% from the previous year in April. At least 17 states, as well as the District of Columbia, have legalized cannabis for recreational use. As per a Pew Research study conducted in April, a majority of Americans believe marijuana should be legalized for both medicinal and recreational use. However, regulatory barriers continue to be a problem for large delivery businesses. Uber CEO Dara Khosrowshahi stated in April that the business would examine cannabis delivery whenever federal regulations in the United States permitted it.
Amazon said in September that it is aggressively pressing the federal government to make marijuana legal nationally, in part owing to a mismatch in regulations around legalization and to decrease one of the employment obstacles of drug testing. The mechanics of cannabis transportation are likewise murky. For example, dispensaries differ in terms of product availability, price, and delivery fees. Legal cannabis delivery is accessible in places such as California, Nevada, as well as Oregon with no limitations, but every state has its list of laws; for example, in California, a shop must hire a delivery person, as well as a vehicle, must be enclosed, therefore no motorcycles, bicycles, or scooters. However, legalized marijuana delivery is a developing sector in the United States, with numerous marijuana firms, such as MedMen and Eaze, already providing services, with the second reportedly venturing into Detroit.
