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News broke earlier this week that Uber Technologies Inc is partnering with Canadian cannabis retailer Tokyo Smoke.
The news was first published by Reuters Initial reports incorrectly stated that Uber would allow marijuana ordering through the Uber app and published.
However, the original report has since been updated to reflect that orders can be placed through the app, although customers still need to get their cannabis the old-fashioned way.
Still, given the size of the company and its lack of any known ties to the cannabis industry before, even Uber’s limited entry into the cannabis space is a big deal.
part of a larger trend
Uber Technologies is not the first major company to enter the cannabis space.it’s part of the sequel mainstream legal marijuana industry.
As the nascent legal cannabis industry continues to grow, especially as it continues to generate huge revenues, there will be a steady stream of big players entering the space.
That could be bad news for industry-wide operators of the cannabis industry who have benefited from Big Tech’s shunning of marijuana because of the stigma and ongoing bans in some regions.
Cannabis delivery services are very popular in some areas because they fill the void. Once the Ubers of the world start offering the same service, it will obviously be harder for smaller delivery companies to compete.
The same is true for many of the technological concepts currently operating in the cannabis space.
Find a niche
Cannabis entrepreneurs who provide certain services still have time to build relationships with consumers and patients before most major companies enter the field.
Now is the time for these companies to build brand recognition and prove to consumers that they can provide as good (or better) service as the big companies.
People who think they have a good idea in the current industry environment need to focus on their long-term plans in addition to their near-term plans.
Otherwise, a really big fish could enter the circle, and if the person/company didn’t plan for that to happen, it could be the difference between them continuing or being kicked out of the industry entirely.
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