Zomato Introduces Rs 5 Cash-on-Delivery Fee on Food Orders: Report

Zomato has introduced a separate fee for cash-on-delivery food orders, adding to existing platform, packaging, delivery and tax charges faced by customers.

Zomato Introduces Additional Fee for Cash Payments

Zomato has reportedly started charging customers an additional fee when they choose the cash-on-delivery option for food orders. The new charge appears separately in the bill summary under the label “Pay on delivery fee.”

According to Moneycontrol, the latest fee is displayed as Rs 5 in some cases. However, the amount is not uniform for all customers. Instances were found where users were charged Rs 7, while some orders reportedly carried a cash-on-delivery fee of as much as Rs 20.

The additional charge applies specifically to customers who decide to pay for their food in cash when the order arrives.

Cash-on-Delivery Orders Now Cost More

The newly introduced payment-related charge is separate from other costs already included in Zomato's food-order bills. Customers may already have to pay platform fees, restaurant packaging charges, delivery charges and applicable GST, depending on the order.

With the new system, choosing cash as the payment method can result in an additional expense.

Customers who complete their transactions online are not required to pay this particular fee. This effectively makes digital payments more economical for users compared with cash-on-delivery orders, at least where the additional charge is applied.

The variation in the fee also means that customers may not necessarily see the same amount on every order.

Swiggy Yet to Introduce Similar Charge

Zomato's move comes at a time when India's online food-delivery sector is witnessing increasing competition. Rival platform Swiggy has reportedly not introduced a comparable cash-on-delivery fee so far.

It remains uncertain whether Swiggy could adopt a similar pricing strategy in the future. For now, the additional payment-method charge gives Zomato another source of customer-facing revenue while potentially encouraging users to shift towards online payments.

Competition in India's Food-Delivery Market Intensifies

The development comes as established food-delivery companies face growing competition from newer entrants.

Rapido's Ownly has been gaining attention in the market, while Flipkart has been testing its Eat In food-delivery service in Bengaluru. Meanwhile, Swish has secured additional funding as it seeks to expand its presence in the sector.

The entry and expansion of new platforms could increase pressure on Zomato and Swiggy to improve efficiency, pricing and customer experience.

As competition grows, companies are increasingly looking for ways to improve unit economics and generate additional revenue from their large customer bases.

Rs 5 Fee Could Generate Significant Revenue

Although the new cash-on-delivery charge appears relatively small, its potential financial impact could be substantial if applied across a large number of transactions.

Zomato is estimated to process around 2.3 million to 2.5 million food orders every day. If a Rs 5 fee were hypothetically charged on every order, the company could generate between Rs 1.15 crore and Rs 1.25 crore per day.

On an annualised basis, that would amount to approximately Rs 420 crore to Rs 456 crore.

However, these figures represent only a theoretical maximum. Not every Zomato customer chooses cash on delivery, meaning the actual revenue generated from the fee would be significantly lower depending on the proportion of orders paid in cash.

Zomato Has Gradually Increased Customer Fees

The latest charge follows a broader trend in which food-delivery platforms have introduced additional fees over the past few years.

Platform fees became more prominent in the sector from 2023 onwards. Swiggy initially experimented with a Rs 2 platform fee, after which Zomato also introduced its own charge.

Zomato subsequently raised its platform fee to Rs 14.99 per order from Rs 12.5, with GST applied separately.

Given the huge number of orders processed by major food-delivery platforms, even relatively small adjustments to per-order charges can have a meaningful impact on overall revenue.

More Charges Could Increase Customer Bills

The cash-on-delivery fee adds another component to an increasingly detailed food-order bill. Depending on the order, customers can encounter separate charges related to the platform, delivery, packaging, payment method and taxes, apart from the actual food cost.

While individual fees may appear modest, their combined effect can significantly increase the final amount customers pay.

For Zomato, the new charge could help improve revenue from its large order base while also encouraging customers to use digital payment methods. For consumers, however, the development could make cash payments less attractive.

What the New Zomato Fee Means for Customers

Zomato's reported cash-on-delivery fee represents another change in how food-delivery orders are priced. While online payment users can avoid the additional charge, customers preferring cash may have to pay more depending on the fee applied to their order.

The reported variation between Rs 5 and Rs 20 also highlights that the additional cost may differ across transactions. As competition in India's food-delivery industry intensifies, companies are likely to continue experimenting with pricing and fee structures.

For customers, checking the complete bill before placing an order will remain important as additional charges can influence the final cost of food delivery.

Conclusion

Zomato’s reported cash-on-delivery fee adds another cost to food orders, with charges starting at Rs 5 and reportedly reaching Rs 20 in some cases. While the fee could generate additional revenue for the platform, it may also encourage customers to prefer online payments. As competition in India’s food-delivery market continues to intensify, Zomato’s latest pricing move highlights the growing focus on per-order revenue and operational efficiency.