CAK Goes After Food Delivery Apps After Consumer Complains

    The Competition Authority has gazetted a market inquiry into Kenya’s Online Food Delivery and Groceries Platforms in order to better understand the business model and, ultimately, inform regulatory and policy interventions for enhanced competition and consumer protection enforcement.

    The authority notes an increase in consumer complaints about food delivery apps, including bad food, failed deliveries, and data breaches.

    In a gazette notice, the authority seeks to learn more about how food delivery and grocery platforms operate and interact with their customers.

    According to the authority, it will identify players and services involved in the food delivery and groceries platforms business model in Kenya and examine the relationships between the platforms and the users.

    The authority will also assess the role of data in operating multi-sided online platforms, customer acquisition, retention as well as data portability, e-payment services and their importance in relation to the food delivery and groceries platforms business model to better understand the consumer protection concerns.

    It will also assess the relevance of the existing regulatory framework and its applicability in the digital markets, to guide better policy making.

    According to CAK acting Director-General Adano Wario, the authority will solicit feedback from all stakeholders within 21 days and hold meetings with Key Informant Interviews (KIIs).