Here’s What to do about the Security and KYC Gap in Online Food Delivery.

Remember the hassle of calling a restaurant to order food and then crossing your fingers, hoping your order arrived correctly and on time? Those were the days! But now, thanks to online platforms, whether you’re working from home or just craving your favourite meal, a few clicks on your phone and your food arrives at your doorstep within minutes.

In 2022, Nigeria’s online food delivery market hit a whopping $834.7 million, and experts predict it’ll skyrocket to $1.7 billion by 2028. The surge in demand has not only caught the eye of traditional food delivery services but also ride-sharing companies, all eager to tap into this growing market.

The future of online food delivery and logistics is brighter than ever, promising more possibilities than we could have imagined. But there’s a huge security gap that threatens the growth and safety of everyone involved – Identity verification and KYC (Know your customer).


The KYC Gap in the Online Food Delivery and Retail Industry

Let’s consider the everyday online customer – someone craving a meal delivered to their doorstep. It’s convenient, sure, but there’s an underlying risk that often goes unnoticed. Imagine this: a fraudster places an order, not for the love of food but to lure in a delivery rider, hijack the delivery, and abscond with the meal and the rider’s valuable possessions. Shockingly, there’s a stark absence of verifications for customer addresses or identities for online orders in the industry.

While some delivery companies maintain registrations for their drivers, the lack of stringent measures to finance dispatch bikes leads to a concerning oversight. Drivers simply need a functioning bike, bypassing any substantial diligence by the logistics company. This lax approach allows drivers to create multiple accounts, potentially earning from each without proper verification. In an industry brimming with profitability, these fraudulent practices pose a serious threat that demands attention.

But it’s not just about the financial risks. Regulatory compliance, or the lack thereof, contributes significantly to the system’s vulnerability. Without strict enforcement, the door remains wide open for security breaches, such as driver accidents, instances of kidnapping, and a general sense of insecurity for customers who welcome these delivery personnel into their homes.

The statistics indeed paint a worrying picture. MarketWatch’s report highlights a staggering increase of 35% in online delivery fraud cases, indicating a pressing need for better security measures. Security Insights Group’s study further emphasizes the urgency, showcasing a 40% spike in mishaps during deliveries due to inadequate identity verification protocols. These vulnerabilities endanger the industry’s financial stability and compromise the safety of both customers and riders.


KYC in food delivery


What to do about the KYC Gap in the Food Delivery Industry

The solution begins with comprehensive KYC practices that cover both drivers and customers. It’s imperative to bridge the existing gap by implementing robust verification measures on both ends, from driver and car/bike registration to customer onboarding on mobile applications. Education plays a pivotal role, too; enlightening food delivery companies and participating individuals about the risks associated with inadequate KYC is critical to fostering a safer environment.

Ride-hailing companies might question the need to invest in KYC when governmental enforcement remains lax. However, the consequences of neglecting thorough verification can be dire. Consider the scenario of a driver meeting a tragic fate during working hours due to a fraudulent customer who placed an online order. Such incidents tarnish brand reputation and integrity, leading to irreparable damage.

Regulatory bodies play a pivotal role in safeguarding these operations. Strengthening and enforcing compliance measures will mitigate these risks and foster an environment where customers can trust the services they rely on. For instance, in Nigeria, the mandatory use of the National Identification Number (NIN) policy necessitates logistics companies to verify the NIN of drivers during registration, emphasizing the urgency of robust security verification protocols.

It’s high time for a collective effort from companies and regulators to close this gap and prioritize the safety and security of everyone involved in the online food delivery ecosystem. That’s where comes in, an AI-powered tool empowering operators and stakeholders by validating identities and combating financial crimes. With a suite of solutions encompassing the validation of over thirteen thousand document IDs across Africa, we ensure the accuracy of individuals’ critical data, such as names, ages, locations, and identity numbers.

We guarantee real-time identity verification for riders and customers through biometrics, including facial recognition, liveness detection, and fingerprint authentication, ensuring a seamless and secure onboarding process while complying with Know Your Customer (KYC) regulations

Our KYC solutions are scalable, secure, and tailored to your needs. Whether setting up your own verification process effortlessly through our No-code solution or seamlessly integrating KYC directly into your app using robust APIs, enables you to improve security within the online food delivery and logistics sector.

Schedule a demo today to learn more about how our tailored solutions can secure your operations.


Create an account on, Market research for early stage startups



Spread the love

Thank you for subscribing!

You will be getting product updates from us. We promise not to spam you.