Delivery companies urge the Ministry of Commerce to review the pricing decision for platforms

The Committee of Owners of Delivery Companies under the Small and Medium Enterprises Authority has called for a reconsideration of Ministerial Decision No. 109 of 2026, backed by 250 companies, alongside a request for an urgent meeting with the Minister of Commerce and Industry, Osama Al-Boudi, attended by representatives of delivery companies. This appeal stems from an appreciation of the Ministry’s commitment to regulating the digital trade sector, protecting consumers, and ensuring fairness among all parties—objectives that the committee fully supports and aligns with.

Committee Chairman Abdulaziz Al-Faleh stated that in any modern economy, the success of regulatory decisions is not measured by the protection of a single party alone, but by their ability to achieve balance among all parties involved in economic activity. From this perspective, Ministerial Decision No. (109) of 2026 raises fundamental questions regarding its understanding of the nature of the food delivery sector in Kuwait.

Al-Faleh added that the core problem does not lie in market regulation, as regulation is a shared demand; rather, it lies in the clear confusion between the concept of a “delivery platform” and that of a “delivery company,” which are entirely distinct activities from both economic and operational standpoints.

He clarified that a delivery company is neither an electronic platform, nor a store, nor a consumer. Instead, it is the entity that bears the full operational cost of executing the service. Yet, the decision makes no mention of delivery companies, nor does it establish any framework to ensure the sustainability of their operations or to account for the nature of the costs they incur.

He noted that the result is that the decision regulated the relationship between the platform and the store, and between the platform and the consumer, while leaving delivery companies to face the market alone, without any protection or even an assessment of the decision’s impact on them.

Al-Faleh pointed out the irony that a decision aimed at protecting consumers could practically lead to increased costs for them in many cases. In recent years, consumers had become accustomed to free delivery fees, or fees of 250 or 500 fils. However, the new cap has been set at one Kuwaiti Dinar, whereas fees exceeding one Dinar were previously mostly limited to distant areas with high operational costs. Furthermore, standardizing delivery fees ignores the fundamental differences between various types of services.

Al-Falih pointed out that unifying delivery fees is no different in essence from attempting to standardize taxi fares, a move that is practically unfeasible. Just as a trip within Kuwait City cannot be priced the same as one to “Sabah Al-Ahmad,” “Al-Khiran,” or “Al-Abdali,” nor can an economy car be equated with a large vehicle or a premium service, pricing must reflect distance, time, operational costs, and the nature of the service.

He added that the immediate implementation of the decision from the date of its issuance, without granting companies a transitional period to restructure their contracts, obligations, and operational systems, has forced many companies and platforms into direct confrontation with violations from the very first day, despite most existing contracts having been signed prior to the decision’s promulgation.

He noted that market regulation is a necessity beyond dispute, but true regulation is only complete when it is based on a thorough understanding of all segments of the sector, rather than just a part of it.

In conclusion, Al-Falih expressed hope that the Minister of Commerce and Industry, known for his commitment to supporting the private sector and ensuring fairness among market participants, would reconsider this decision and delay its implementation until it can be comprehensively reviewed.

Al-Falih hoped that any review would include representatives of local delivery companies as key stakeholders in this activity, rather than limiting dialogue to electronic platforms alone, as each operates under a different business model and faces distinct challenges.

Finally, he emphasized that the owners of delivery companies are mostly Kuwaiti nationals who have invested their capital in this sector, created job opportunities, and contributed to building the country’s logistics service framework. They have the right to have a voice when any decision affecting their interests and the future of their investments is discussed, in line with the principle of partnership that ensures the sector’s sustainability and protects the rights of all parties.