When Uber announced that it would be offering delivery services for cannabis retailers, it naturally peaked our interest. At first glance, it seems like incredible app exposure for our brand to offer delivery through such a widely used platform. Upon looking deeper, we realized that this option will simply not be viable for majority or independent cannabis retailers.
As stated by Lola Kassim, General Manager of Uber Eats Canada, “We are partnering with industry leaders like Leafly to help retailers offer safe, convenient options for people in Toronto to purchase legal cannabis for delivery to their homes, which will help combat the illegal market and help reduce impaired driving”(Global News). This well-intentioned statement mirrors goals independent retailers have had since the Alcohol and Gaming Commision allowed cannabis delivery during the Covid-19 shutdowns.
So how would it work?
- Uber Eats and Leafly will surely be taking a substantial cut from the retailers. “Uber refused to share how much of a cut it and Leafly will take for every sale made through Uber Eats. However, Uber takes a commission between 20 and 30 per cent for most restaurant orders delivered through Uber Eats. The industry has long maintained the cut is too high” (CBC News).
“The retailers’ staff, rather than Uber drivers, will handle the dropoff, the companies said on Sunday” (New York Post). The retailer will also incur the labor costs associated with sending an employee along for the uber ride for the delivery.
Why it isn’t worth it?
In all, delivery with Uber Eats doesn’t serve the needs of our customers, or our business. At Buzzed Buds, we already offer free, in-house delivery at highly competitive prices. When you place an order for cannabis through Uber Eats, Uber charges a service and delivery fee, further inflating costs for the consumer. Due to saturation and compression, the reality is that cannabis operators do not maintain a large enough profit margin to sustain the cuts from Uber Eats and Leafly, and would have to increase prices to account for the fees.
Save the fees by ordering direct delivery.
