Zomato Charges Extra Fee for Cash on Delivery Orders; Swiggy Yet to Follow

Food delivery service Zomato has introduced a new fee for customers opting to pay with cash upon delivery. According to observations by MediaNama, this "pay on delivery fee" ranges from Rs 5 to Rs 21 per order and appears to vary based on the user and the total value of the order.

This new charge is separate from Zomato's existing platform fees, restaurant and packaging costs, and delivery partner fees. Customers who choose to pay online using digital methods are not subject to this additional payment.

A source familiar with the matter, speaking anonymously, described the fee as a "convenience charge" for customers who prefer to pay at their doorstep. "These transactions involve additional operational processes and more coordination in handling cash and QR-based payments," the source stated.

Zomato's competitor, Swiggy, has not yet implemented a similar fee for its cash on delivery orders. It remains to be seen whether Swiggy will adopt a comparable strategy. However, given Zomato's substantial order volumes, even a small fee could potentially generate significant revenue.