Zomato Introduces Additional Charges for Cash on Delivery Orders

New Delhi, September 12 (Daily Kiran) : Zomato, the popular online food delivery platform, has begun implementing an additional fee for customers opting for cash on delivery (COD). This new charge ranges from ₹5 to ₹20 and is part of the company’s strategy to strengthen revenue sources amid increasing competition.

According to details visible on the app, this fee is labeled as “pay on delivery fee.” It applies only to those customers who choose to pay in cash at the time of delivery, rather than through online payment methods. Reports indicate that most customers will see a charge of ₹5, although some may face fees of ₹7 or even ₹20, depending on the order.

The new COD fee is separate from Zomato’s existing platform fees, packaging charges imposed by restaurants, and Goods and Services Tax (GST). This means that customers selecting the COD option will now pay an additional amount on their total bill, while those who pay online will not incur this fee.

Zomato processes approximately 2.3 to 2.5 million food orders daily. As competitors like Rapido’s food delivery brand Only expand their market presence and Flipkart tests its “Eat In” food delivery platform, Zomato is actively seeking new revenue streams.

It’s noteworthy that food delivery companies first introduced platform fees in 2023, with Swiggy starting the trend by charging ₹2 per order. Following suit, Zomato implemented a similar fee, which has since increased from ₹12.50 to ₹14.99 per order this year, with GST applied separately. Given the current order volume, even a slight increase in fees could translate into hundreds of crores in additional annual revenue for the company.

In recent months, Zomato has also focused on cost control and operational restructuring. A report from August revealed that the company laid off approximately 250 employees after reviewing its organizational structure. As part of this process, Zomato decided to shut down its customer delight operations in Hyderabad and consolidate its remaining in-house customer support activities in Gurugram.