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Food delivery companies to amend contracts to end monopoly

Thursday, November 28, 2019

Competition Protection Authority (CPA) signed an agreement with the two food delivery companies in Kuwait Talabat and Carriage to amend the contracts signed between the company and restaurants to remove the monopolistic provisions in their contract.

'Delivery Hero Company', which owns both Talabat and Carriage will amend the contracts, which will indirectly help more food delivery companies to operate in Kuwait. The amendments included cancellation and change in items in the contracts that CPA found illegal. The term of exclusivity in the contracts between the company and the restaurants in Kuwait will be removed from the new contracts.

Earlier it was reported that the two companies had signed contracts with various restaurants in 2017 and forced them not to cooperate with other delivery services, which made many restaurants cancel contracts they had signed with other companies; forcing those companies to file several complaints to CPA in June 2018. After that, the two companies allegedly informed restaurants that they would charge them an extra two percent on operations in case they sign contracts with other deliver services.

The Delivery Hero Company, which owns 'Talabbat' and 'Carriage' had invested about $500 million in Kuwait in the recent years, making it one of the most important foreign investor in Kuwait.

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