City of Tshwane: 3 Online Food Business Shutdowns Over Compliance

• The City of Tshwane recently shut down three online food and grocery businesses in Hatfield due to alleged regulatory and food-safety non-compliance.
• Yassir and Uber Eats Market were closed for allegedly operating without a Certificate of Acceptability and required business licences.
• Zulzi faced shutdown over allegedly fraudulent compliance documents, including a liquor licence, and concerns regarding the sale of medication.
• The City of Tshwane health enforcement focused on the physical premises where food is handled, stored, and prepared for delivery.
• Municipal officials emphasized that online platforms do not exempt businesses from standard health, licensing, and food safety regulations.

This recent action by the City of Tshwane underscores a growing trend of municipal enforcement targeting online businesses, particularly those involved in the food sector or handling regulated products.

The City of Tshwane recently undertook a targeted enforcement operation, resulting in the shutdown of three prominent online food and grocery businesses in Hatfield. This action, spearheaded by the city’s health department and Health MMC Tshegofatso Mashabela on a Friday, aimed to address alleged regulatory and food-safety compliance failures identified at the physical fulfilment premises of these digital platforms.

The businesses affected by these Tshwane online food business shutdowns include grocery e-tailers Zulzi, Yassir, and Uber Eats Market. The municipal inspection focused intensely on the facilities where food is received, stored, handled, packed, and prepared for delivery, highlighting the city's concern regarding the entire journey of food from storage to the consumer's delivery rider. Inspectors meticulously assessed various aspects, including overall food-premises compliance, adherence to hygiene standards, pest control measures, waste management protocols, sanitation facilities, and the suitability of delivery equipment for safe food transportation.

During the operation, Yassir and Uber Eats Market were found to be allegedly operating without essential documentation, specifically lacking the required Certificate of Acceptability and valid business licences. According to the city, these businesses will only be permitted to resume their operations once they have rectified the identified contraventions and demonstrated full compliance with all applicable municipal regulations. Uber Eats Market, which launched locally in 2022 through a partnership between Uber Eats and Smart Kitchen Co., has since made its merchant unavailable on the Uber Eats app while the matter is being addressed.

In a more serious case, alcohol and groceries e-commerce platform Zulzi was shut down after officials allegedly discovered fraudulent compliance documents, including what the city described as a fraudulent liquor licence. Furthermore, the inspection raised significant concerns regarding the sale of medication and pharmaceutical products through Zulzi’s online platform. The city has stated that Zulzi will remain closed until all identified contraventions are resolved and complete compliance is demonstrated. The City of Tshwane also plans to investigate the distribution of regulated medicines via Zulzi, scrutinizing whether appropriate pharmaceutical authorisations were in place, emphasizing that ordering medicines through an app does not negate the legal requirements for their dispensing, storage, handling, and distribution.

Both Yassir and Uber Eats have acknowledged the closures, with Yassir confirming the temporary shutdown of its Hatfield store due to a compliance requirement and stating that the matter is receiving urgent attention. Uber Eats also noted its awareness of the situation concerning a merchant operating on its platform in Tshwane, indicating the merchant is engaging with authorities to clarify requirements. This recent action by the City of Tshwane underscores a growing trend of municipal enforcement targeting online businesses, particularly those involved in the food sector or handling regulated products.

Health MMC Tshegofatso Mashabela reinforced the city’s position, stating that online businesses are not exempt from the law. She emphasized that the digital nature of these operations does not bypass municipal health, licensing, and food-safety requirements. Whether food and regulated products are sold through a traditional shop, a website, or a mobile application, they must adhere to the same public-health and regulatory standards. This stance highlights the increasing focus on e-commerce food safety compliance in ZA and the importance of online food business licensing in South Africa, as the City of Tshwane health enforcement continues its efforts to protect the health and safety of its residents.

This development signals increased municipal enforcement against online businesses in South Africa, particularly those handling food or regulated products. Lawyers and compliance officers should advise clients operating e-commerce platforms with physical fulfilment centres to urgently review their compliance with municipal health, licensing, and food safety regulations to avoid similar shutdowns.

Source: Original reporting via ITWeb