The Competition Authority of Kenya (CAK) has issued a directive requiring online food delivery services Glovo and Uber Eats to establish local offices in Kenya. This move aims to improve the handling and resolution of customer complaints, which have been slow due to the companies managing operations primarily from overseas.

The CAK's decision follows a survey that highlighted significant delays and inefficiencies in the complaint resolution process. The survey findings indicated that the lack of physical offices in Kenya contributed to prolonged redress processes and difficulty in reaching customer service. “The establishment of country offices will enable the platforms to address and resolve consumer and competition issues more efficiently,” the CAK stated.

In addition to mandating local offices, the CAK is advocating for the creation of a self-regulatory framework for the food delivery industry. This step is seen as crucial, given the absence of specific legal regulations covering online food and grocery delivery operations in Kenya.

Common complaints reported by consumers include delays in delivery, undisclosed full-price information, incorrect products delivered, additional charges, price overcharging, and delivery of spoiled food. Despite these issues, only 16 percent of consumers have officially lodged complaints, largely due to the lack of accessible complaint channels.

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Currently, Jumia Foods is the only food delivery company with a significant local presence, with its country headquarters in Nairobi. In contrast, Glovo, Uber Eats, and Bolt Food operate their main offices from Barcelona, San Antonio, and Tallinn respectively.

The food delivery market in Kenya has surged, particularly during the pandemic, which forced many to stay indoors. According to Statista, the sector is projected to generate $306.70 million in 2023. This growth has intensified competition among key players like Uber Eats, Glovo, and Bolt Food. To remain competitive, these companies have expanded their services beyond food delivery to include items such as alcohol, pharmaceuticals, and household supplies.

Uber Eats, once a leading service, has adapted its business model in response to growing competition and the evolving needs of Kenyan consumers. "Diversifying our services was inevitable," said Wangui Mbugua, General Manager of Uber Eats in Kenya, emphasizing the importance of exploring new market segments to sustain revenue growth and adapt to stringent regulatory environments.