Uber Files for Courier Licence as Parcel Demand Reshapes the Market
If approved, the licence would give Uber access to a nationwide courier business that has become a key part of Kenya's retail, logistics and e-commerce ecosystem.
Uber is seeking regulatory approval to expand into Kenya’s parcel delivery sector, a move that would place the ride-hailing company in one of the country’s fastest-growing logistics segments.
The company has applied to the Communications Authority of Kenya for a National Courier Operator licence, a permit that would allow it to collect, transport, sort and deliver parcels and documents across the country. Approval would extend Uber’s local operations beyond passenger transport and food delivery into a market increasingly tied to online commerce and business logistics.
The application arrives as courier services gain economic importance while traditional postal activity continues to contract. Businesses, retailers and individual consumers are relying more heavily on delivery networks as commercial activity shifts onto digital platforms, creating demand for faster movement of goods between sellers and customers.
For Uber, the expansion would build on infrastructure it already operates. The company maintains an active network of drivers, routing systems and digital payment channels that can be adapted for logistics services. That foundation reduces the need for large upfront investment typically associated with building a nationwide delivery operation.
The proposed entry also comes during a period of adjustment within Kenya’s postal and courier industry. Data from the Kenya National Bureau of Statistics shows continued declines in conventional postal services during 2025. The number of post offices fell from 623 to 457 while domestic letter volumes recorded a 5.7 percent drop.
Sector output also weakened. Postal and courier services generated Sh25.99 billion during the year, down from Sh26.64 billion in 2024. At the same time, competition among delivery providers continued to grow, with licensed courier operators increasing from 348 to 351 and the number of service outlets rising to 1,158.
Those figures highlight a market undergoing a transition rather than outright decline. While letter mail continues to lose relevance, demand for parcel movement, fulfilment services and business deliveries is creating new revenue opportunities for operators able to adapt.
That transition has been particularly important for the Postal Corporation of Kenya. The State-owned agency has increasingly focused on logistics and parcel handling as digital communication reduces reliance on traditional mail. A new entrant with Uber’s scale, technology and customer reach would add pressure in a segment that many operators now view as central to future growth.
Kenya’s communications regulator has also been moving to formalise emerging delivery models. In September last year, the Communications Authority proposed a dedicated licensing framework for courier-hailing firms, including a Sh100,000 permit fee, as authorities sought to bring rapidly expanding app-based delivery services under a clearer regulatory structure.
If approved, Uber would join a field where speed, tracking capabilities and network coverage have become major competitive factors. The company has already launched parcel delivery services in several international markets, using its existing platform to connect customers with drivers handling package deliveries.
The development reflects a broader evolution taking place across the transport technology industry. Companies that began by moving passengers are increasingly pursuing logistics operations as they search for additional revenue streams and seek to deepen engagement with customers already using their platforms.
For merchants, particularly small and medium-sized businesses that depend on reliable fulfilment, increased competition could widen delivery choices and improve service availability. The impact on pricing and market share will depend on how aggressively new entrants expand and how established operators respond once regulatory approvals are in place.
Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent and across the world.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
