CAK sees more suitors for digital companies
Friday, June 26, 2020 0:01
By PATRICK ALUSHULA
Glovo, an online delivery firm, has partnered with retailers to take goods to customers’ homes.
FILE PHOTO | NMG
The Competition Authority of Kenya (CAK) expects digital firms to witness increased interest from firms seeking mergers and acquisitions post Covid-19.
“We are likely to see hospitality companies partnering with online delivery firms to achieve synergies for business.”
Online delivery firms such as Sendy and Glovo have partnered with supermarkets for home delivery of goods since the onset of Covid-19, showing the increased profile of firms playing in e-commerce space.
Some of the deals may be killer mergers where large firms acquire upcoming e-commerce firms to pre-empt future competition as buying habits shift online.
