Cigarette electronique ; MORDECAI OGADA – Racist Undertones in the Media’s Reporting of COVID-19’s Origins


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The consumer logistics industry is not new in Kenya; people have been ordering and delivering products via hawking and third-party messenger services powered by phones or direct contact. Products include produce, clothes, and cooked food that are delivered to offices, homes and designated collection points.

The food and beverages sector has experienced aggressive growth with the entry of new players in the market who are using on-demand e-commerce enabled by mobile technology and connectivity throughout the entire purchase chain. From the point of ordering, payment, order management, processing, delivery and tracking, these on-demand e-commerce platforms limit the role of human mediation in the transaction – unless it is absolutely necessary.

According to Jumia Food Index Report 2019, the food and beverages industry in Kenya was valued at between Sh830 and Sh880 billion at the end of 2019, and had internally projected a 50 per cent growth in on-demand services in 2020. Jostling for a slice of this on-demand cake are food delivery players (including global companies powered by e-commerce technology), venture capital and a market ready for on-demand consumption. The biggest three food delivery players in Kenya are Jumia, Glovo and Uber Eats, the latter two having come on board in the past two years, and the former having been established for a while.

Jumia is a Nigeria-based online service that sells and delivers almost everything, from beauty products to electronics. Glovo is a Spanish courier service that purchases, picks up and delivers products through its mobile app. Uber Eats is an American online company that only delivers food. Even though Glovo was the last entrant into the Kenyan market, it has rapidly expanded to give Jumia a run for its money in the food delivery business.

It is instructive to note that all three companies are subsidiaries or part of larger companies, with extensive on-demand driven e-commerce experience in transport, supply chain management, and last-mile logistics, all centred around consumer convenience and satisfaction. These companies are, therefore, able to maximise on their experience, existing infrastructure and available capital to rapidly expand. Their middlemen approach to providing a marketplace and a service without the commensurate costs associated with running a business means that they are able to maximise their profit margins.

On-demand companies make their money by creating a marketplace and charging for it. The customer pays for the supposed convenience and choice. The restaurant pays to off-load delivery services, hence reducing the logistical challenges while gaining access to a larger market. Restaurants may pay up to 30 per cent commission to these on-demand platform providers, depending on their volume and agreements. They also pay for their restaurant to be promoted within the e-commerce site for more visibility.

Customers pay in two ways: either they buy a subscription through membership, where they are enticed with unlimited free delivery, or they pay a delivery fee. This fee is calculated in terms of the distance covered.

Delivery companies also make money off the drivers, who register onto the platform for opportunities in delivery. These companies consider their delivery workers as independent contractors, thus defraying the costs associated with employee remuneration and benefits, as well as costs of managing and maintaining a delivery fleet. There are also consumer logistics companies that make additional money from advertising on the platform and their other logistics businesses.

These on-demand companies operate only in a few Kenyan cities: Uber Eats only delivers in Nairobi; Glovo operates in Nairobi, Kitengela, Mombasa and Nakuru, while Jumia is operational in Nairobi, Mombasa, Eldoret, Kajiado, Kiambu, Kisumu, Machakos and Nakuru. Even within these cities, there are areas that are not covered by this service.

COVID-19, the true disruptor

Human systems are very difficult to upend, unless collective human behaviour and actions are forced to change. For a while, computing and technological advancement hit a plateau where existing systems of living and working conditions remained significantly untouched. Then, in November 2019, a new coronavirus, COVID-19, was detected in Wuhan in China, and by the 11th of March, the World Health Organization (WHO) declared it a global pandemic.

Kenya, like many countries, took a raft of measures to respond to the pandemic, from a ban on social gatherings (including closure of in-dining restaurants) to encouraging social distancing, strong encouragement towards teleworking, closure of schools, curfews, inter-county travel bans, promotion of sanitation, closure of some markets, and violent policing of these measures, among others. And in one fell swoop, COVID-19 created the kind of disruption computing and technological aficionados have been predicting and hankering after.

What COVID-19 and the measures taken by the government did was to create an opportunity for the on-demand e-commerce-enabled consumer logistics sector to expand much more than the players themselves predicted, as their service was classified as essential. Glovo, for instance, quickly positioned its entire range of logistics business (third-party couriers, delivery of groceries and pharmaceuticals etc.) within the market. Jumia quickly leveraged its platform and delivery fleet by partnering with Twiga Foods to get farmer produce to customers.

The government measures have positively affected the consumer logistics industry and its revenue streams. This will continue long after the return to a “new normal”. The industry will try to position itself as the disruptor to the old ways, forgetting that it was opportunely placed to leverage the true disruption that COVID-19 wrought.

What COVID-19 and the measures taken by the government did was to create an opportunity for the on-demand e-commerce-enabled consumer logistics sector to expand much more than the players themselves predicted, as their service was classified as essential.

Having dispensed with the notion that these on-demand e-commerce marketplace providers are “true disruptors”, let us attempt to understand how they operate within the food delivery sector. As they self-define, they just offer a market where the players within the sector connect with each other. They, therefore, work with brick-and-mortar restaurants, cloud kitchens (restaurants with delivery menus only) supermarkets’ hot food sections, and independent food providers to deliver the product to the customer. They also work with delivery people, mostly as independent contractors, to offer the transport part of the transaction. In addition, they lay claim to the customer base in order to sell advertising to restaurants, third-party delivery people and other businesses.

Restaurants signed up with them are available to consumers within a certain locale, based on proximity. Their menu items are available for consumers to select, load into a cart, pre-pay or opt for post-payment, provide a delivery address and proceed to track the delivery. In Kenya, most customers opt for cash or M-Pesa payment on delivery of their orders, although there are pre-payment options using credit and debit cards provided by payment gateway companies. There are myriad of technologies that these on-demand businesses use to provide this seemingly seamless unmediated experience to the customer.

Concerns

Although we have engaged with the ideas that on-demand e-commerce platforms offer convenience and choice for customers, an expanded marketplace for restaurants and food proprietors, and ready delivery markets for delivery persons, we must also grapple with the arising concerns from this business model.

First among the concerns, especially during COVID-19 times, is food safety. How do we ensure that these platforms have a standardised approach to food handling, ensuring the highest standards for food delivery? With food delivery, there is the added layer of the delivery worker, which in itself is contrary to the social distancing rules set up by the government. When these layers are added, the monitoring of the rigid healthy and safety guidelines might fall by the wayside. When such standards cannot be assured, who will bear the responsibility of infections should they happen?

We have also seen a global trend towards most essential workers being at risk of contracting COVID-19, and delivery workers fall into this category. Their work requires their physical presence, and they may during the discharge of their duties get exposed to infection. After all, they may be delivering to those who are sick and in quarantine.

In Kenya, there is a preference for cash payment, on delivery, which further compounds the risks faced by delivery workers. It is a major concern for these workers, especially when we consider them in relation to the nature of our non-existent healthcare system. These delivery workers are treated by these global companies as independent contractors or “entrepreneurs”, which means their connection to these global companies is one devoid of employee benefits, such as medical cover, which would be a safety net for them.

Most of the e-commerce platforms are hailed as opening up opportunities for businesses, in this case, restaurants and food providers, along with delivery workers. But on close scrutiny, we notice that these companies operate quite a predatory model to maximise their revenue generation. For every meal a customer orders, a restaurant can pay up to 30 per cent of the cost of the meal, depending upon the volumes they sell and the agreements they set up with the companies. Why should such a model be encouraged where the actual businesses that have invested in the operations and people to produce the product are not reaping the benefits? This model, which ostensibly offers the consumer choice and convenience, is actually killing the restaurant business and rendering a lot of people in this sector jobless. Not to mention that these dine-in options can lead to a solitary food culture, which is the antithesis of dining in a restaurant, which is more of a social event.

So, who uses theses services and what do they eat?

I think we sometimes forget that Kenya is more than Nairobi and the other major cities. By using their distribution model, we can see that these on-demand services are not equitably spread all over Kenya, and in fact when we look at the cities/ towns they operate in, we’ll also discover that for one reason or another, there are areas that are not covered by this service. I can venture, therefore, that this service is classist in nature because it replicates the problems inherent in the society, and Kenya as a society is classist. In addition, its “everyone pays to be on the marketplace” model is a clear indication that there are those who cannot afford to use this platform.

So, who gets to use these services and what do they get to eat?

First of all, it is those who have the money to pay for the food, and the convenience of getting the food delivered. For most people in Kenya, dining out (or in this case, in) is a luxury. The cost of food that is delivered is higher than the cost of food in a restaurant because there are delivery charges included. There is a minimum threshold of spending that one must do to avail free delivery services. All these costs add up to exclude a lot of people.

These delivery workers are treated by these global companies as independent contractors or “entrepreneurs”, which means their connection to these global companies is one devoid of employee benefits, such as medical cover, which would be a safety net for them.

Secondly, by nature, the use of these on-demand apps require that the user have a mobile device with internet connectivity, and in some cases, a form of electronic payment method. Although, there has been a marked penetration of mobile internet users in Kenya, quite a number of them still do not have this facility.

Another area of exclusion is that of illiterate users, who cannot read to place their orders, including those who are technologically disadvantaged. It requires a certain form of digital literacy to avail secure, private and efficient use of the e-commerce marketplace.

As I intimated earlier on, there are sections of the cities that where these on-demand services are not available. This could be due to insecurity, a lack of restaurants (we earlier saw that delivery is based on proximity of the customer to the eateries that deliver), a lack of a clear address layout, lack of trust and so forth. Whatever the reasons to not operate is certain areas, this ensures that people in those areas are not serviced, or do not get an equal service to someone else.

Then there is the question of what is being eaten. Most of the food in this marketplace is produced by multinational fast food companies and long-established restaurants. However, we are increasingly seeing local food and kibanda-style restaurants entering the marketplace. Recently, both Jumia and Glovo added “kibanda” menus on their platforms. We do know that “kibanda” menus serve a certain frugal, by choice or necessity, clientele. It is therefore an oxymoron to put these foods that cater to a certain segment of the society on a platform that will put a surcharge on the product.

On a different note, this putting of the “kibanda” menu on the platform is akin to the gentrification of the food item – to appeal to those with the means. However, in general, gentrification does marginalise those who used the service before it acquired its special status. Do we then want to marginalise those for whom “kibandas” provided an essential service?

The other elephant in the room

Just like other applications that consumers subscribe to, there is a lot of data that e-commerce companies are collecting. Some of the data they collect include user demographics, location, spending habits and preferences, and so forth. How is this data stored? How do they use it? Do they monetise it? These are questions that have to be clearly answered by these companies. In fact, most companies do sell this data to targeted advertising campaigns and to feed their artificial intelligence algorithms – without the consumers’ knowledge or consent. Consumers, therefore, have to be quite discerning in their interaction with the systems and the advertising so as to ensure that they are making their own independent and informed choices.

Just like other applications that consumers subscribe to, there is a lot of data that e-commerce companies are collecting. Some of the data they collect include user demographics, location, spending habits and preferences, and so forth.

It may appear that I am cynical of technology, technological advancement and e-commerce. On the contrary, I am an avid user of technology and I understand that there is no reversing its prevalence and importance in our current world. What I want to posit is that we should not forget that technology, and all that it births, is a tool to enable human endeavour. It is, therefore, incumbent upon us to place checks and balances on people and organisations that want us to believe that this tool is a panacea to our problems.

This article is part of The Elephant Food Edition Series done in collaboration with Route to Food Initiative (RTFI). Views expressed in the article are not necessarily those of the RTFI.

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