Kenyan regulator launches inquiry into online food delivery and grocery platforms

The Competition Authority of Kenya (CAK) has launched an inquiry into the conduct of online food delivery and grocery platforms in the country to inform policy options and bolster healthy competition, as well as consumer protection enforcement, according to a report from TechCrunch.

The regulator is investigating how food delivery and groceries platforms operate in practice, with a focus on the competition parameters and concerns amongst players, including the role of data in their operations, data portability, how they acquire customers, and redress mechanisms for consumers shopping through the marketplaces.

CAK acting director general, Adano Wario, said the inquiry will help identify players and services involved in the food delivery and groceries platforms business model in Kenya and examine relationships between the platforms and users.

Kenya has seen a proliferation of online food delivery and grocery platforms, including Uber, Jumia, Bolt, and Glovo, which have gained a foothold in the country due to the growth of the internet and smartphone penetration, coupled with the uptake of online shopping and deliveries.

The inquiry is part of CAK's effort to review whether the existing regulatory framework can be applied in digital markets and will help it provide redress mechanisms for consumers shopping through the marketplaces.

The move follows the recent coming together of several competition watchdogs in Africa, including CAK, to interrogate the market conduct of global digital firms over concerns related to competition and consumer welfare in Africa.