Kuwait's Food sector at loss risk

KUWAIT CITY, July 13: More than 250 delivery companies in Kuwait, represented by the Committee of Delivery Companies Owners affiliated with the Small and Medium Enterprises (SMEs) sector, submitted a grievance to the Minister of Commerce and Industry requesting a review of Ministerial Decision No. 109/2026 and its temporary suspension pending an assessment of its economic and operational impacts, reports Al-Jarida daily. The companies requested that the ministry schedule an urgent meeting with their representatives. In their letter to the minister, the committee emphasized that delivery companies were surprised by the decision's issuance without their involvement in discussing its provisions, despite being the main stakeholders in the delivery system and bearing the brunt of the sector’s operational and investment burdens. The committee explained that the decision focused on regulating the relationship between electronic platforms, customers, and merchants, and set caps on commissions and delivery fees.

However, it did not adequately consider the impact of these changes on delivery companies, nor did it establish a framework to regulate their role or to balance their rights and obligations. The delivery companies bear high operational and investment costs, including drivers’ and employees’ salaries, accommodation and living expenses, vehicles and maintenance costs, fuel, rent, licenses and government fees, health insurance, IT systems, customer service, cybersecurity, as well as bank obligations, financing agreements, and vehicle leasing expenses.

Many companies made their investments based on feasibility studies, contracts, and long-term loans. The committee warned that any sudden decline in revenues without a comprehensive assessment of the economic impact could result in financial losses, the insolvency of some companies, the closure of others, and employee layoffs, ultimately affecting citizens who have invested in this sector. It noted that the repercussions of the decision would not be limited to delivery companies but would also extend to restaurants, shops, cooperative societies, and consumers, potentially affecting service quality and the sustainability of the e-commerce sector in Kuwait. The committee requested that the ministry take three main measures. First, it called for the temporary suspension of the decision until its impacts are thoroughly studied. Second, it proposed the formation of a joint committee comprising the Ministry of Commerce and Industry, relevant government entities, and representatives of delivery companies, platforms, and merchants to develop a balanced regulatory framework. Third, it called for an urgent meeting with the minister to present financial and economic studies, along with data on the potential impact of the decision.

The committee confirmed that it had authorized its chairman, Abdulaziz Abdul Latif Bandar Faleh, to represent delivery companies in any meetings or discussions with the relevant authorities. In conclusion, the committee stressed that its objective was not to oppose regulation of the sector, but rather to establish a fair and sustainable regulatory framework that protects Kuwaiti investments, supports the digital economy, and ensures the continued delivery of services to consumers while balancing the interests of all parties.