Commerce Ministry moves to rein in delivery app fees amid soaring costs
Hidden charges and high commissions by delivery apps are burdening consumers and restaurants; urgent calls for regulation as Kuwait’s food delivery market nears $1.5 billion
The Ministry of Commerce and Industry is studying amendments to the regulations governing food delivery services. The proposed changes aim to cap delivery app fees, protecting both consumers and small-to-medium-sized restaurant owners from excessive charges.
The amendments will specifically target restaurant operations, setting a ceiling on delivery fees and fixing a percentage of the order value. They will also close loopholes that some platforms exploit to collect additional fees, which have directly contributed to inflated meal prices, reports Al-Qabas daily.
The current delivery fee structure (250 fils inside zones and 500 fils outside) remains legally binding, with violations enforceable if consumers file complaints. However, many platforms bypass these limits by imposing “extra” charges under misleading categories, creating a lack of transparency in the market.
Delivery apps, once celebrated for convenience, are increasingly seen as financial burdens. They deduct between 25% and 30% from every bill — far higher than international benchmarks — leaving restaurants with shrinking margins and consumers paying more. This quasi-monopoly has forced restaurants to either raise menu prices or reduce portion sizes, ultimately hurting the customer experience.
The online food delivery sector in Kuwait has exploded in scale. In 2024 alone, monthly online orders exceeded 2.6 million, with more than 72% of consumers preferring apps, especially during evening hours between 7 and 9 pm. The number of cloud kitchens surged to 120 compared to just 77 in 2022, reshaping the food industry into a more digital, app-dependent model.
At the same time, fast-food restaurants expanded to more than 1,250 outlets, recording a 14% increase in visitor numbers. Yet, despite these growth figures, restaurants and consumers alike remain squeezed by the high commissions imposed by delivery platforms.
Market estimates valued the online food delivery sector at $880 million in 2024, with projections indicating growth to $1.43 billion by 2032 at a CAGR of 6.3%. This expansion is fueled by cloud kitchens, digital transformation, and rising income levels under Kuwait’s Vision 2030.
Yet, the industry’s rapid growth is overshadowed by unfair practices. Kuwaiti legislation already prohibits monopolistic behavior and unfair terms, but enforcement has lagged. Unless stricter regulations are applied, delivery apps will continue to profit at the expense of restaurants and consumers, cementing their role as “forced partners” who bear no operational risks yet extract guaranteed income from every transaction.
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