Kuwait's home delivery industry is under significant threat, with many firms warning of potential bankruptcy due to recent regulatory changes and miscommunication from government agencies. The Delivery Company Owners Committee has voiced serious concerns about the negative impact of new rules and the inconsistency of some decisions affecting their businesses.

Abdulaziz Abdullatif Bandar, Chairman of the Delivery Company Owners Committee, highlighted that recent decisions and circulars are causing severe disruptions. Many of these regulations are reportedly baseless and subject to rapid changes, which have led to increased debts and operational challenges for delivery firms. Bandar pointed out that the implementation of Article Seven of Ministerial Resolution No. 271/2020 has been problematic, particularly regarding the cancellation of licenses for companies that are non-compliant or inactive.

Financial Strain: Delivery companies face mounting debts due to unstable policies and the high costs of compliance. Many commercial licenses remain unused due to regulatory inefficiencies.

Potential Black Market: Bandar warned that the ongoing situation could foster a black market for delivery licenses, exacerbating the problem.

Increased Costs: New regulations on vehicle types and conditions for licenses could drive up operational costs, ultimately impacting delivery service prices and contributing to traffic congestion.

Bandar has urged decision-makers to engage with delivery industry stakeholders before implementing new laws or circulars. He emphasized the importance of consulting with industry experts to avoid negative consequences for the delivery sector and the wider labor market. He also called on the Interior Minister to address the concerns of Kuwaiti SMEs, advocating for the removal of obstacles and the implementation of laws without unnecessary intermediaries.

The increased costs and regulatory burdens have not only affected delivery companies but also have implications for consumers. Higher delivery charges are anticipated, which could affect both Kuwaiti citizens and expatriates. Bandar stressed that the current approach could lead to a rise in illegal labor and black market activities, further destabilizing the industry.

The current regulatory landscape poses significant challenges for Kuwait’s home delivery sector. As the industry grapples with financial pressures and policy inconsistencies, it is crucial for government agencies to reassess their approach and engage with stakeholders to ensure sustainable and fair regulations.