Online food delivery companies under probe by Competition Authority

Online food delivery companies are under probe by the Competition Authority of Kenya (CAK) as the government seeks to suggest regulatory and policy options for competition and enforcing consumer protection.

The regulator says it intends to carry out a study into the online food delivery and groceries platforms in Kenya across various areas, key among them competition parameters and the role of data in their operations.

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 are other areas CAK said it will probe.

The regulator’s acting director-general Adano Wario on Tuesday said they will be seeking to understand the consumer protection concerns in a bid to provide redress mechanisms available for consumers when shopping on the platforms.

“… assess the relevance of the existing regulatory framework and its applicability in the digital markets, to guide better policy making,” a statement issued by the regulator reads.

CAK also invited members of the public with relevant information to submit oral or written submissions to its secretariat.

The latest comes just months after the regulator conducted a similar probe on local digital lenders.

CAK issued recommendations on pricing transparency, which were adopted in the new Digital Credit Providers law introduced by the Central Bank of Kenya.