Zomato Starts Charging Extra Fee for Cash-On-Delivery Orders
Food delivery platform Zomato has begun imposing an additional fee on some cash-on-delivery orders. The charge varies across transactions, with no clear rationale provided.
Indian food delivery service Zomato has started charging customers an extra fee for opting for cash-on-delivery (COD) payments. The 'Pay on delivery' fee, as it is called, varies between different orders, with Inc42 observing charges of both ₹5 and ₹13 on separate transactions. The fee is displayed separately from other charges like platform and delivery fees.
While the exact factors determining the fee—such as order value, location, or customer profile—remain unclear, Zomato does display a message encouraging users to opt for online payments to avoid the additional charge. It is also not specified when the levy was introduced or if it has been rolled out nationwide.
This new charge is part of Zomato's ongoing efforts to monetize its food delivery business more effectively. Earlier this year, the company increased its platform fee by nearly 20%. Competitor Swiggy also raised its platform fee shortly after.
Unlike the platform fee, which applies regardless of payment method, this new charge specifically targets COD orders, making them more expensive. The move comes amid increasing competition in India's food delivery market, with e-commerce players like Flipkart and logistics firms like Rapido expanding their services into this sector.