Uber allows customers to purchase cannabis through the app

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Uber will soon allow users in Ontario, Canada to order cannabis strains through its Uber Eats app, a move that marks the ride-hailing company’s first steps into the industry.

Uber Eats will list the cannabis retailer Tokyo Smoke on its platform, enabling its customer base to place orders through the app and then pick it up at their closest store location, according to Reuters.

The company’s chief executive Dara Khosrowshahi told media in April the company will consider delivering cannabis when the legal coast is clear in the US.

READ MORE: Uber to upset rapid grocery delivery space as it plots its own service

Illegal cannabis manufacturers still control a large proportion of the market in the US, despite it being decriminalised in a number of states for over three years.

The new partnership will help Canadian consumers attain the drug safely and legally, helping to diminish the market share of illegal producers, who still account for over 40 per cent of all non-medicinal sales of the drug.

Uber’s share price rose 1.2 per cent at $44.78 in premarket trading following the news.

Total cannabis sales in Canada will reach $4 billion in 2021 and is expected to leap to $6.7 billion by 2026, according to figures from BDS Analytics.

“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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