Uber Eats and Leafly expand cannabis delivery to Alberta

Starting July 30, cannabis users in Alberta will have a new option for cannabis delivery. Uber Eats, in partnership with Leafly, has announced that it will begin accepting orders from licensed cannabis stores in Alberta.

This partnership will allow customers to place orders through the Uber Eats platform, which will notify the relevant store to have its staff deliver the items.

A New Era for Cannabis Retail in Alberta

The cannabis industry in Alberta is experiencing significant growth, and the launch of this delivery service marks a notable milestone.

According to Klaas Knieriem, general manager of grocery and retail for Uber Eats in Canada, «More Albertans than ever have access to legal cannabis. We’re partnering with industry leaders like Leafly to help retailers offer safe and convenient options that allow Albertans to purchase legal cannabis and have it delivered directly to their homes. This will help reduce impaired driving and improve road safety.»

Alberta's decision to allow retailers to offer online sales and delivery began in early 2022, followed by British Columbia in 2023.

Criticism and Concerns

Some retailers have found that partnering with Uber Eats and Leafly beneficial. Calvin Basran, of Queensborough Cannabis in British Columbia, where The two companies have been working together for a year, highlighted the benefits to StratCann : «We were able to leverage our strengths—fast delivery, top-notch service, and strict compliance with provincial regulations—and combine them with Uber Eats» extensive user network to reach new customers in the Vancouver metropolitan area.”

This sentiment is shared by Mike Dunn, owner of 1922 Cannabis in Toronto, who noted that the service has allowed his store to focus more on delivery without having to manage the online infrastructure.

For Dank Cannabis, one of the first five retailers to participate in Alberta, the partnership is seen as an exciting opportunity to expand its reach in Calgary. Co-founder Arshi Kalkat said: «At Dank Cannabis, our goal has always been to offer our customers a stress-free retail experience since we launched our business in 2021. This partnership will help us continue on this path and expand our reach to even more people in Calgary.»

However, not all reactions have been positive. Jazz Samra, owner and founder of Sativa Bliss Cannabis in Ontario, expressed his dissatisfaction with the service. He highlighted the financial implications, stating that the combined fees from Leafly and Uber Eats, along with the requirement to use store staff for deliveries, have significantly eroded his profit margins.

«I had set them up for two of my stores, and I quickly canceled one of them because I discovered that Uber didn’t have a customer base (in that area). And I still had to have one of my employees make the delivery. So I have to take an employee away from the store to make a delivery for an hour, and then hand over almost my entire profit margin on the sale to Leafly and Uber. That doesn’t make sense,» explained Mr. Samra.

Another Ontario retailer, Jennawae Cavion, founder of Calyx + Trichomes in Kingston, chose not to use the service for similar reasons. She argued that the 15% fee charged by Uber Eats and Leafly was too high, especially since the retailer also had to cover the cost of delivery.

Ms. Cavion questioned the value of the service, stating, «It’s too expensive—and what’s the point? It’s a very bad deal. You can just have it delivered yourself. It’s not only a bad deal for retailers; it’s also a bad deal for consumers, because it just drives up costs.»