Uber Technologies' (UBER) - Get Uber Technologies, Inc. Report delivery and takeout unit has partnered with Canadian cannabis retailer Tokyo Smoke to allow online cannabis orders through Uber Eats in Ontario, starting Monday.
According to reports, Uber will partner Toronto-based licensed cannabis retailer Tokyo Smoke to allow for orders of legal cannabis and related products. A spokesperson confirmed to Reuters that the partnership will kick off on Monday.
Uber, which already delivers liquor through its Eats unit, has had its sights set on the burgeoning cannabis market for some time. CEO Dara Khosrowshahi said in April that the company will consider delivering cannabis when the legal coast is clear in the U.S.
With more than three years into Canada's legalization of recreational cannabis, the country is trying to fix its floundering pot market, where illegal producers still control a large share of total annual sales.
Cannabis stocks have been drifting higher of late following reports of a Republican-led bill seeking to legalize and tax marijuana takes aim at a market expected to grow to $51 billion by 2025.
Earlier this month, online magazine Marijuana Moment broke the news that Rep. Nancy Mace (R-SC) is leading a bill to deschedule and tax marijuana.
Currently in draft format, the bill known as the States Reform Act proposes officially making marijuana a regulated substance akin to alcohol and slapping it with a 3.75% excise tax.
The proposed legislation would put the interstate regulation of marijuana under the Alcohol and Tobacco Tax and Trade Bureau, which is an agency within the Treasury Department. The U.S. Food and Drug Administration also would have a limited role in regulating products
The bill is currently being circulated among stakeholders and not expected to be filed until the end of the month.
In a report issued in September, analytics firm New Frontier Data said global sales of high-THC cannabis through legally regulated sources totaled $23.7 billion in 2020, with the U.S. alone accounting for $20.3 billion of that total.
Uber shares were down 0.2% at $44.14