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News Kuwait > Business > Kuwait Delivery Companies Seek Suspension of New Fee Regulation to Avoid Insolvency
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Kuwait Delivery Companies Seek Suspension of New Fee Regulation to Avoid Insolvency

NewsDesk
Last updated: July 13, 2026 9:48 pm
NewsDesk
3 weeks ago
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Al-Jarida daily reported that the Committee of Delivery Companies Owners, which represents the more than 250 firms within the small and medium enterprises sector, submitted a formal grievance to the minister requesting three immediate steps to address the decision’s shortcomings. The committee authorized its chairman, Abdulaziz Abdul Latif Bandar Faleh, to represent the group in all related discussions with authorities. In its letter, the committee stressed that delivery operators were taken by surprise when the regulation appeared without any input from the primary stakeholders who shoulder the system’s operational demands.

The decision centers on relations between electronic platforms, customers and merchants while imposing limits on commissions and delivery fees, yet it overlooks the delivery companies’ central function according to the grievance detailed by Al-Jarida daily. Faleh’s committee explained that no framework was created to define their obligations or protect their rights despite their pivotal position in sustaining e-commerce flows. Delivery operators had anticipated balanced oversight that would account for their investments rather than unilateral adjustments that shift costs downward without corresponding support.

High operational expenses cited in the committee’s submission include driver and staff salaries, employee accommodation, vehicle purchases and upkeep, fuel, facility rents, licensing fees, health insurance, information technology infrastructure, customer support, cybersecurity measures, bank commitments and leasing contracts. Many operators had committed capital based on detailed feasibility analyses, multi-year agreements and substantial financing arrangements that assumed stable revenue streams. The committee cautioned that an abrupt revenue drop absent thorough evaluation would place these businesses in jeopardy.

Financial losses, company closures, widespread layoffs and reduced service quality could follow if the regulation takes effect without modification, the committee’s letter warned as conveyed by Al-Jarida daily. Such outcomes would ripple beyond delivery firms to restaurants, retail outlets, cooperative societies and end consumers who depend on reliable e-commerce logistics. The grievance noted that e-commerce sustainability in Kuwait hinges on viable delivery economics that the current decision appears to undermine.

Among the committee’s requests is the immediate but temporary suspension of Ministerial Decision No. 109/2026 until a comprehensive economic and operational study is completed. It also proposed creation of a joint committee drawing members from the Ministry of Commerce and Industry, other relevant government bodies and representatives of delivery firms, platforms and merchants to draft balanced rules. Finally, the group asked for an urgent meeting with the minister to present supporting financial data and impact projections.

A research paper evaluating Kuwait’s food import controls found that the country sources more than 90 percent of its food consumption through imports, heightening reliance on efficient delivery networks for distribution. The KPMG Kuwait Food and Beverage Report from 2024 identified strong sector momentum, with roughly 80 percent of surveyed consumers dining out one to two times weekly and rising interest in diverse cuisines. Recent regional conflicts have further strained supplies, as CNN correspondent Nic Robertson observed at Kuwait’s fish market where reduced permits and disrupted imports from the Strait of Hormuz have cut both local and international fish availability.

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ByNewsDesk
News Kuwait NewsDesk is the desk responsible for News Kuwait's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.
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