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A market survey conducted by the Competition Authority of Kenya (CAK) has shed light on the power dynamics within online food and grocery delivery platforms, highlighting the influence these platforms wield over couriers.

The survey indicates that platforms control courier charges significantly, with little room for negotiation. Despite couriers being registered with multiple platforms, they often have to adhere to strict delivery schedules to ensure efficiency and timeliness.

Couriers, who are integral players in the delivery process, face challenges such as the requirement to maintain exclusivity with specific platforms and unfair contract terms. The study by CAK sought to understand the use and preference of the various platforms indicated couriers contend with unfair contract terms as they are not given room for negotiation as the terms of service are unilaterally devised by the platforms.

The report’s assessment of market power indicated that retailers did not yield market power over platforms, however, platforms yielded market power over couriers about determination of courier charges, an indication that platforms unilaterally set the charges with no latitude for negotiation with the couriers,” reads the report in part.

Fourty per cent of the couriers indicated that they were required to maintain exclusivity with the platforms which they were signed on.

Similarly, equal number of the couriers indicated that they had challenges with unfair contract terms as they were not given room for negotiation as the terms of service are unilaterally devised by the platforms. An additional 20 per cent of the couriers opined that they had the challenge of contract terms being frequent.

“The study finds that platforms had more power over couriers concerning exclusive agreements, unfair contract terms, and frequent change of contracts,” the survey says.

Glovo, a food app that has been delivering items at clients’ doorstep, is the most preferred platform for food and groceries with a market rating of 46 per cent.

Logistics service

Jumia, a Pan-African technology company that is built around a marketplace, logistics service and payment service earned a rating of 35 per cent while other grocery delivery platforms shared 25 per cent of the rating by their consumers.

In the category of preference by consumers, Glovo was the most preferred platform by consumers with a rating of 33 per cent followed by Jumia Food with 23 per cent while Uber Eats and Bolf Food enjoyed 21 per cent and 16 per cent consumer rating respectively It also emerged that Bolt Food had the highest number of couriers serving at 30 per cent closely followed by Jumia Food and Uber Eats which tied at 20 per cent each. Glovo was only served by 10 percent couriers while only 3 per cent of them were registered with Jumia.

Couriers were registered with multiple platforms and were not restricted by any platforms, however, couriers indicated that they were required to choose and lock a specific time to be making deliveries. “This practice does not amount to an exclusive agreement but to ensure efficiency and timely delivery of products as delays in delivery were the most common consumer complaint recorded by platforms,” the survey read in part.

The emergence of digital platforms has transformed various aspects of daily life, work dynamics, and employment-seeking methods, leading to the rise of what is commonly known as the ‘gig economy.’

This economic model encompasses a wide range of services, including food delivery, ride-hailing, as well as freelance tasks like translation, design work, and administrative tasks, all accessible online with just a few clicks.