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Uber, Tokyo Smoke – compliance update

Earlier this week, there was news that Uber Eats had teamed up with Tokyo Smoke to allow for in-app, click-and-collect purchases in Ontario.

At the time the exclusive story was published on Reuters, it was run with a headline stating that Uber Eats was facilitating delivery – which other outlets picked up and are continuing to run:

Later, Reuters republished the story with a revised headline stating more clearly that Uber Eats would be facilitating click-and-collect through their app:

Because there appeared to be confusion on what Uber Eats and Tokyo Smoke were announcing – and because this was a new partnership involving a significant entry into the Canadian cannabis landscape – the story sparked quick analysis of the partnership within the Canadian cannabis Twitter community. 

Specifically, many in the sector – both compliance attorneys and those working in the click-and-collect and payments’ realms – chimed in on how, and if, the partnership was compliant – and what could or would – make it compliant.

To cover the Canadian cannabis Twitter analysis, the next day Business of Cannabis published, “The new Uber & Tokyo Smoke partnership – is it compliant?” – both on our website and in our Cannabis Daily email newsletter.

Based on follow-up analysis and new information being presented to us from Uber and other sources, we want to update the original post and email:

  • In a subsequent story in the Financial Times, an Uber spokesperson clarified how the payments were being processed, one of the key compliance questions raised in regards to the Uber/Tokyo Smoke partnership – stating, “Uber’s in-house payments specialists, working with our trusted external banking and payments partners, implemented proprietary measures to ensure full payments compliance…” Financial Times (paywalled)
  • The Business of Cannabis post also noted that the Uber Eats app did not age-gate the ordering process. In communication with Uber, they have assured Business of Cannabis that the terms and conditions in Uber’s apps require all users to attest to being at least 18 years or older, that there are numerous layers of protection assuring that only 19+ individuals are able to order cannabis and that during in-store pick-up, age-verification is completed in-store by CannSell-authorized staff.

As always, Business of Cannabis aims to keep the cannabis industry informed of the latest developments affecting the sector – and this story is no different.

We encourage you to subscribe follow us on Twitter and LinkedIn for the latest.

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