Competition Authority puts food delivery apps on the spot over consumer complains
The Competition Authority has gazetted it is conducting a market inquiry into the Online Food Delivery and Groceries Platforms in Kenya in order to better understand the business model and, ultimately, inform regulatory and policy interventions for enhanced competition and consumer protection enforcement.
The authority notes increased consumer complains over bad food, failed deliveries and breach of customer data among others involving food delivery applications.
In a gazette notice, the authority seeks to uncover how food delivery and groceries platforms work in practice and their relation with its users.
The authority says it will:
Identify players and services involved in the food delivery and groceries platforms business model in Kenya and examine the relationships between the platforms and the users.
Assess the role of data in operating multi-sided online platforms, customer acquisition, retention as well as data portability, e-payment services and their importance in relation to the food delivery and groceries platforms business model to better understand the consumer protection concerns.
Assess the relevance of the existing regulatory framework and its applicability in the digital markets, to guide better policy making.
According to the CAK acting Director-General Adano Wario, the authority will receive views from all stakeholders within 21 days and also hold meetings with Key Informant Interviews (KIIs).
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