Uber Kenya is seeking a permit to allow it send parcels and other goods in a diversification move that puts it in direct competition with State-backed Postal Corporation of Kenya (Posta).
The American ride-hailing technology firm has applied to the Communications Authority of Kenya (CA) for a National Courier Operator licence, which will allow it to collect and deliver packages across the country.
Uber’s entry into the courier business is set to pile fresh pressure on Posta, which has in recent years struggled to remain afloat as declining letter volumes, mounting losses and rising competition reshape Kenya’s delivery market.
The State-owned corporation has increasingly shifted focus to parcels, logistics and e-commerce deliveries as traditional mail services continue to shrink amid growing use of digital communication platforms.
Official data shows that postal services continued to contract in 2025, with the number of post offices decreasing from 623 to 457 and domestic letters declining by 5.7 percent.
During the year, the value of output for postal and courier services dropped to Sh25.99 billion down from the Sh26.64 billion recorded in 2024.
‘The number of licensed courier operators rose slightly from 348 in 2024 to 351 in 2025. The number of outlets operated by the licensed courier operators rose by 2.5 per cent from 1,130 in 2024 to 1,158 in 2025,’ wrote the Kenya National Bureau of Statistics (KNBS) in its latest Economic Survey.
The permit sought by Uber allows an operator to provide courier services throughout Kenya, including collection, sorting, transportation and delivery of parcels and documents.
Last September, the CA sought to introduce a new licence for courier-hailing firms that would see them pay Sh100,000 for permits as government hunted revenues from the fast-growing market for home and office deliveries.
If granted, the licence would formally extend Uber’s operations into a sector benefiting from growing demand for e-commerce deliveries, business logistics and same-day parcel distribution services.
The application comes at a time when courier services have become increasingly important to online merchants and small businesses seeking faster and more reliable delivery channels. Growth in e-commerce has fueled demand for parcel movement services as more transactions shift from physical stores to online platforms.
For Uber, the licence would allow it to leverage an existing network of drivers, routing technology and payment systems to compete in the delivery market without building an entirely new transport infrastructure.
The company already operates ride-hailing and food delivery services in Kenya, giving it access to a large customer base and a ready distribution network.
The courier business is also set to provide an additional revenue stream as competition intensifies in the ride-hailing sector.
Digital taxi operators have in recent years faced growing pressure from disputes over fares, commissions and driver earnings, prompting firms to explore adjacent business opportunities.
Internationally, Uber has expanded parcel delivery operations in several markets, allowing customers to send packages through the same application used for transport and food orders.
Kenya’s courier market has become increasingly competitive as operators seek to capitalise on rising demand for same-day and next-day delivery services.
Delivery services have become critical for sectors such as retail, healthcare, financial services and manufacturing, where rapid movement of goods and documents is increasingly important.
Unlike conventional courier firms that rely on dedicated delivery fleets, Uber could potentially utilise drivers already active on its platform to fulfil parcel deliveries, with the potential to lower operating costs and improve efficiency.
Greater competition is set to give rise to more delivery options and faster fulfilment times for consumers.