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Zomato Now Charges Up to Rs 20 for Cash on Delivery
Zomato has introduced a Rs 5 to Rs 20 cash-on-delivery fee for customers paying in cash, separate from its existing platform fee and GST charges.
Key Highlights:
- Zomato has begun charging a separate "pay on delivery fee" ranging from Rs 5 to Rs 20 for cash-on-delivery orders.
- The fee is distinct from the platform fee, packaging charges and GST, and doesn't apply to online payments.
- Zomato processes an estimated 2.3–2.5 million orders daily, with competitors Rapido's Ownly and Flipkart's Eat In gaining ground.
- Swiggy has not introduced a similar COD fee so far.
- The move follows Zomato's August restructuring, which saw around 250 layoffs and consolidation of Customer Delight operations in Gurgaon.
A New Charge for an Old Payment Habit
Eternal-backed food delivery platform Zomato has started charging customers an additional fee for choosing to pay cash on delivery, marking its latest move to extract revenue from payment method choices as competition in the food-delivery space intensifies. The new charge, labelled a "pay on delivery fee" and shown separately in the app's bill summary, appears to apply specifically to orders where customers opt for cash payment at the time of delivery.
How Much Customers Are Being Charged
According to multiple reports, app screenshots show the fee most commonly set at Rs 5, though some users have reported being billed Rs 7 or as much as Rs 20 depending on the order. Importantly, the charge is separate from Zomato's existing platform fee, restaurant packaging charges and GST, and customers who choose to pay online are not subject to it at all, effectively creating a financial nudge toward digital payments.
Why This Fee Makes Strategic Sense for Zomato
Cash-on-delivery orders typically carry higher operational costs for delivery platforms, including cash handling, reconciliation and a greater risk of payment disputes or delivery refusals, compared to prepaid digital transactions. By introducing a targeted fee specifically for COD, Zomato appears to be addressing these underlying cost differentials directly, rather than raising fees uniformly across all payment types. This approach also aligns with a broader industry trend of nudging consumers toward digital payments, which are cheaper to process and settle at scale.
