The decision by the Berlin-based European multinational online food delivery company, Delivery Hero’, to consolidate and strengthen its position in the market by takeover of competitors, has come in for strong criticism by many in the food service industry.
Restaurant businesses fear that Delivery Hero, which already owns Kuwait’s leading food delivery firm, Talabat, deciding to takeover Carriage, another food delivery operation in the country, would lead to the creation of a monopoly that could dictate terms to restaurants.
They have asked the concerned authorities to monitor the food delivery sector, as many Kuwaitis are engaged in the food and restaurant business directly or through their investments, and any monopolistic practice in the sector could undermine their businesses and livelihood.
There is also the possibility that a significant number of restaurant owners could default on their bank loans, especially since many of them have built their business models on Carriage application services and the benefits that they believed would contribute to maximizing their profits and expanding their activities.
Several Kuwaitis employed with Carriage and Talabat also expressed their fear that the amalgamation of the two companies could lead to retrenchment of a number of employees, as they would be deemed redundant to a joint operation.
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