Kuwait has introduced new regulations for third-party online delivery platforms, effective September 1, 2026, aiming to address imbalances between platforms, merchants, and consumers in the country’s rapidly growing delivery sector. The rules, issued by the Ministry of Commerce and published in July, impose caps on delivery fees and platform commissions while seeking to protect small and medium-sized businesses from excessive charges.

Under the new framework, delivery fees for orders placed through third-party apps are limited to a maximum of 1 Kuwaiti dinar (KD), and commissions charged to businesses are capped between 10 and 17 percent. The regulations prohibit platforms from imposing additional fees such as operational or processing charges beyond these limits. Notably, these rules apply only to platforms that connect merchants with consumers and do not cover businesses that sell and deliver products directly through their own applications.

The government justified the caps as necessary to correct what it described as an uneven power dynamic, where platforms function as essential gateways, leaving merchants—particularly smaller ones—little negotiating power over the terms imposed. A legal text accompanying the regulations noted that merchants’ acceptance of platform conditions increasingly resembles adhesion contracts rather than freely negotiated agreements.

The delivery ecosystem in Kuwait involves two principal players: platforms, which serve as market intermediaries linking customers with restaurants, pharmacies, and other merchants, and third-party logistics providers (3PLs), which handle the actual delivery operations using their own fleets and drivers. Although the new rules regulate platforms, they do not address 3PL companies directly, a point of contention among industry insiders.

Representatives of delivery companies have expressed concerns that the regulations overlook their operational realities. Abdulaziz Faleh, head of the Committee of Delivery Company Owners tied to the Small and Medium Enterprises sector, said the decision protects consumers, apps, and merchants but neglects delivery companies. Payment arrangements between platforms and 3PLs vary widely, with drivers often receiving around 60 percent of the order value or a fixed delivery fee, leaving delivery companies with the remainder to cover fleet and staff costs. The new caps could force platforms to renegotiate contracts to reduce payouts to 3PLs, potentially leading to bankruptcies in the delivery sector.

A financial manager at a delivery company cautioned that the caps would make it difficult to maintain current driver salaries and administrative staffing levels. Smaller companies with lower overhead might survive, but larger operators might not sustain profitability under the new limits. Faleh warned that disruption to 3PLs could trigger a broader breakdown across Kuwait’s delivery network.

By contrast, restaurant owners welcomed the regulations, which they expect will reduce previously high commission fees that reached up to 35 percent. Khalid Hussein, a seasoned financial manager in the food and beverage sector, said the new caps should improve restaurants’ profit margins, although this may not translate into lower prices for consumers. Fahad Al-Arbash, Chairman of Kuwait’s Restaurants, Cafes, and Catering Services Federation, noted that some restaurant chains previously paid platforms significant sums annually, adding up to millions when aggregated across the industry.

The regulations also introduce a “wallet cap,” preventing platforms from imposing additional fees on merchants beyond the commission, covering advertising, promotional campaigns, and banking charges among others. Some platform representatives voiced concerns that this limit could reduce their ability to offer customized marketing services, potentially disadvantaging smaller merchants seeking visibility.

Platforms with different business models, such as Coops Delivery, which serves cooperative societies without charging commissions, face unique challenges under the fee cap. Fahad Saleh Al-Turaiji, CEO of Coops Delivery, highlighted difficulties in delivering to distant areas within the KD 1 fee limit, suggesting that the platform might have to reduce coverage or restrict order sizes. He emphasized that delivery vehicles vary in cost depending on size and function, making a uniform delivery fee potentially unfair.

Legal expert Khaled Bashir said the regulations aim to enhance transparency in commercial relationships and benefit consumers by stabilizing merchant operating costs. He noted, however, that adherence to the rules requires vigilance to prevent hidden or indirect charges and recommended periodic reviews to keep the caps aligned with market dynamics.

The Ministry of Commerce’s decision is legally binding, though affected parties retain the right to challenge the measures in Kuwait’s administrative courts. Delivery companies have already raised concerns in meetings with the ministry, seeking amendments to the framework. Observers note that the sector now faces structural adjustments as platforms, delivery firms, merchants, and consumers adapt to the new regulatory landscape.