Al-Faleh said delivery market activity increased by 10 percent in 2025, with the average number of daily orders reaching approximately 500,000 on regular days, rising to between 600,000 and 650,000 during holidays and peak seasons, compared to 450,000 daily orders in 2024. He stated that the Kuwaiti market includes approximately 1,977 delivery companies, of which 1,000 are active and employ between 60,000 and 70,000 drivers, adding that the number of vehicles used in this sector is approximately 60,000, representing 30 percent of the total. Meanwhile, a restaurant owner told the daily that the relationship between restaurants and online platforms has become unbalanced, indicating that platforms are now imposing their terms without regard for the already limited profit margins of restaurant owners. She explained that the platforms have come to control product marketing and customer access, making them an indispensable element. They deduct high commissions, sometimes reaching 48 percent of the order value, while the cost of preparing food accounts for an additional 30 percent.

This means the total cost to the restaurant is about 78 percent, leaving only 22 percent to cover other operating expenses such as rent, salaries, and bills. She expressed regret that restaurant owners now feel as if they work for the platforms, rather than the other way around. She stressed that this unfair situation harms not only restaurants but also consumers, as some restaurants are forced to raise meal prices on the apps to cover the high commissions of the platform, while keeping their prices at branches 15 percent to 20 percent lower. In addition, economic researcher Sultan Al-Majroub said Kuwait lacks accurate market data needed to assess the level of competition between delivery companies and platforms. He emphasized the importance of legislators thoroughly studying the delivery market before enacting any laws or regulations. Al-Majroub explained that the Ministry of Commerce and Industry’s previous decision to impose a unified delivery fee (250 fils within the area and 500 fils outside it) was never actually implemented due to its incompatibility with market realities and operating costs.

Any future legislation must be based on a careful study of demand and daily transaction volumes, proposing variable rates based on invoice value, so that smaller invoices bear higher relative costs than larger ones, reflecting the inverse relationship between invoice size and commission rate. He stressed that the Kuwaiti market has reached a state of saturation, and any additional fees or increased platform rates would negatively affect consumers. Al-Majroub believes that imposing a symbolic tax on major delivery platforms, especially foreign ones, could provide a new source of revenue for the state, noting that many of these companies transfer their profits to foreign markets.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff