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HomeNewsUber partners with Leafly for marijuana delivery in ‘milestone’ for cannabis industry

Uber partners with Leafly for marijuana delivery in ‘milestone’ for cannabis industry

(Uber Photo)

Uber and Leafly from Seattle are partnering to provide cannabis delivery in Toronto. It’s the first time cannabis delivery is available on a major third-party delivery platform.

“It marks not only a new milestone for Leafly, but a huge milestone for the cannabis industry,” Dave Cotter, Leafly chief product officer, told GeekWire.

Uber Eats Toronto users aged 19 and over can now order cannabis products from three marijuana retailers, starting Monday. The ordering process works just like a food order, but the cannabis is only delivered by the retailer’s own certified staff versus any independent Uber Eats driver. This person, in compliance with Toronto regulations, will confirm age and sobriety before delivering the cannabis.

Leafly has partnered with other retailers in order to deliver cannabis within the U.S., where legal.

However, the deal with Uber is “a significant step in placing cannabis in the mainstream,” said Cotter, a former Nordstrom and Zulily leader who joined Leafly in 2019.

“We think cannabis delivery is a key part in growing in the consumer market,” he added. “We’ve been investing in delivery for the past 18 months and this is a further extension into our plans.”

Cotter stated that Leafly follows the same model as Uber with restaurants and grocery stores, but could not give details about the revenue sharing agreement.

Uber had previously worked with an Ontario cannabis retailer, Canada. However, customers were required to go into the actual store and pick up their order.

Founded in 2010, Leafly’s online marketplace lets customers shop and select cannabis products from licensed retailers. The startup also serves as an educational resource. The startup’s income comes mainly from the monthly subscription fee that is paid by marijuana retailers in order to list on the platform, and access e-commerce tools.

In a SPAC agreement, the company was made public in January. In Q2, it reported revenue of $12.1million, an increase 13.8% from the year before.

The average monthly active user fell to 7.9million, or 28%, versus the previous year. Total retail accounts also fell by 3% in the second quarter. Leafly cited challenges in less mature markets and “signs that customers are more cautious with their ad budgets.” It lowered full-year revenue expectations.

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