Article: Uber Eats’ cannabis delivery partnership with Leafly is mostly smoke and mirrors

The Conversation In Canada digs down into the deal and finds not much really going on…

From the consumer’s perspective, the deal will merely provide another online location to order cannabis for delivery, on top of the Ontario Cannabis Store and other private retailers.

All three of the initial stores currently offer online ordering for either in-store pickup or free same-day delivery to a designated area within the Greater Toronto Area (with a minimum purchase amount).

Consumers can also order these same products from the Ontario Cannabis Store run by the Ontario government where they can opt for same-day delivery within Toronto for a fee of eight dollars. Any gain on the part of consumers is minimal.

There’s also little in this for retailers. They will likely see a marginal increase in orders, but at what price to them? Neither the retailers nor Uber have been willing to disclose the commercial terms of this deal so we’re left to guess. Cannabis, as of this moment, doesn’t enjoy the kind of margins that can sustain the fees that Uber is charging.

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