Uber enters the cannabis market

Uber Technologies Inc has marked an entry into the booming cannabis market.

A spokesperson for Uber announced on Monday that it will allow users in Ontario, Canada, to place orders for cannabis on its Uber Eats app.

Uber Eats will list cannabis retailer Tokyo Smoke on its marketplace on Monday, following which customers can place orders from the Uber Eats app and then pick it up at their nearest Tokyo Smoke store, the spokesperson added.

Uber, which already delivers liquor through its Eats unit, has had its sights set on the burgeoning cannabis market for some time now.

Its CEO Dara Khosrowshahi told media in April the company will consider delivering cannabis when the legal coast is clear in the United States.

Global cannabis stocks tracker MJ ETF climbed 2%, while Uber’s shares were up 1.2% at $44.78 in premarket trading.

Cannabis sales in Canada will total $4 billion in 2021 and are forecast to grow to $6.7 billion in 2026, according to data from industry research firm BDS Analytics.

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