Earlier this week, it was reported that Uber Technologies Inc. has partnered with Canadian cannabis retailer Tokyo Smoke.
The news was first reported Reuters and initial reports erroneously indicated that Uber would allow cannabis to be ordered through the Uber app i handed over.
However, this initial report was later updated to reflect that orders can be placed through the app, although customers will still need to get their cannabis the old-fashioned way.
However, even Uber’s limited entry into the cannabis space is a big problem given how big the company is and previously had no known links to the cannabis industry.
Part of a bigger trend
Uber Technologies Inc. is not the first large company to enter the cannabis space. It is part of the continuum transversalization of the legal cannabis industry.
As the emerging legal cannabis industry continues to evolve and, most importantly, continues to generate huge revenues, there will be a steady stream of large companies entering the space.
This could be bad news for operators in entire sectors of the cannabis industry who have benefited from the big tech companies that avoid cannabis because of the continued stigma and ban in some areas.
Cannabis delivery services are very popular in some areas because they fill a void. Once the Ubers of the world start performing the same service, it will obviously be much harder to compete for smaller delivery companies.
The same goes for many technological concepts that currently work in the cannabis space.
Find a niche
Cannabis entrepreneurs offering certain services still have time to establish themselves with consumers and patients before most large companies enter the space.
Now is the time for these companies to build their brand recognition and demonstrate to consumers that they can offer a service as good (or better) as large companies.
People who believe they have a good idea of the current climate of the industry should focus on their long-term plans in addition to their immediate plans.
Otherwise, a very large fish could enter and if the person or company did not plan for this to happen, it could be the difference between continuing or leaving the industry altogether.