Eternal’s Zomato begins charging Rs 5-20 extra on cash-on-delivery orders

Food delivery platform Zomato has introduced an additional charge for customers who choose to pay for their orders through cash on delivery. The new fee, ranging from Rs 5 to Rs 20 in different cases, is being added separately to the existing charges levied on food orders. Zomato adds ‘Pay on Delivery Fee’ The Eternal-owned food delivery platform introduced a “Pay on Delivery Fee” on Saturday. The charge is displayed separately in the order bill and applies when customers choose to pay in cash or through a QR code at the time of delivery. The amount is not uniform across orders. Screenshots shared by users on social media have shown fees ranging from Rs 5 to Rs 20, with the charge appearing to vary depending on factors such as the order and restaurant. Customers who choose online payment do not have to pay this additional fee. The new charge is separate from Zomato’s existing platform fee, restaurant-specific charges, packaging fees and GST, which continue to apply to orders. As of now, Zomato has not officially commented on the introduction of the new fee or clarified the basis on which the amount is being calculated. New fee comes amid competition in food delivery The move comes as food delivery platforms continue to explore new monetisation avenues amid increasing competition in the sector. Zomato is facing competition from newer and expanding players, including Rapido’s Ownly and Flipkart ’s newly piloted Eat In service. Food delivery startup Swish has also raised fresh funding as it expands its presence. Zomato reportedly handles around 2.3-2.5 million food orders every day. If a Rs 5 charge were applied to every order, it could theoretically generate around Rs 1.15-1.25 crore per day, translating to approximately Rs 420-456 crore annually. However, this represents only a theoretical upper-bound estimate, as cash-on-delivery orders account for only a portion of Zomato’s total transactions. Zomato’s latest fee adds another component to the cost of ordering food through the platform, while rival Swiggy does not currently levy a separate charge for cash-on-delivery orders. Also Read: “An officer may come and go, but a trustworthy institution must endure,” says Tukaram Mundhe on X