Uber Eats and Leafly Expand Cannabis Delivery to Alberta

Starting July 30, Uber Eats and Leafly will enable licensed cannabis stores in Alberta to deliver products directly to customers. However, while some retailers see the partnership as beneficial for expanding their reach and focusing on delivery, others criticize the high fees and logistical burdens, claiming it erodes profit margins and increases costs for both retailers and consumers.

Starting July 30, cannabis consumers 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 collaboration will allow customers to place orders through the Uber Eats platform, which will notify the relevant store to deliver the products through its staff.

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A New Era for Cannabis Retail in Alberta

The cannabis industry in Alberta is experiencing significant growth, and the introduction 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 are partnering with industry leaders like Leafly to help retailers offer safe and convenient options for Alberta residents to buy 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 deliveries began in early 2022, followed by British Columbia in 2023.

Cannabis via Uber Eats – Benefits and Advantages

Some retailers have found the partnership with Uber Eats and Leafly beneficial. Calvin Basran of Queensborough Cannabis in British Columbia, where the two companies have been collaborating for a year, highlighted the advantages to StratCann: “We have been able to leverage our strengths—fast delivery, top-notch service, and strict adherence to provincial regulations—and combine them with Uber Eats’ vast 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 mentioned 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 stated: “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 extend our reach to even more people in Calgary.”

Uber Eats Criticisms and Concerns

However, not all reactions are positive. Jazz Samra, owner and founder of Sativa Bliss Cannabis in Ontario, expressed dissatisfaction with the service. He highlighted the financial implications, stating that the combined fees from Leafly and Uber Eats, as well as 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 quickly canceled one of them because I found out that Uber had no customer base (in that area). And I still had to use one of my employees to make the delivery. So, I have to take an employee out of the store for an hour to make a delivery, then give almost all my profit margin on the sale to Leafly and Uber. It doesn’t make sense,” explained 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% fees charged by Uber Eats and Leafly were too high, especially when the cost of delivery was also borne by the retailer.

Cavion questioned the value of the service by stating: “It’s too expensive, and for what? It’s a very bad deal. Just deliver it yourself. It’s not just a bad deal for retailers, it’s also a bad deal for consumers because it only drives up costs.”

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(Featured image by Kai Pilger via Unsplash)

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