New Delhi: Ordering food through Zomato could now cost more for customers choosing cash on delivery, with the platform reportedly introducing an additional ‘Pay on Delivery Fee’.
A ₹5 charge is being added separately to the bill summary for customers opting to pay in cash when their order arrives. However, some users have reportedly seen the fee vary between ₹7 and ₹20, depending on the order.
Customers paying digitally through UPI, credit or debit cards, or net banking will not have to pay the additional cash-payment charge.
The new fee is separate from existing platform fees, restaurant packaging charges, delivery charges and GST, increasing the number of charges customers may see on their final bill.
Zomato’s rival Swiggy has reportedly not introduced a similar cash-payment fee so far.
Potential additional revenue
Zomato handles around 23-25 lakh orders a day, according to the figures cited in the report. If a ₹5 charge were applied to every order, it could potentially generate up to ₹1.25 crore in additional daily revenue, or several hundred crore rupees annually.
The platform fee charged by food-delivery companies has also risen substantially in recent years. Zomato and Swiggy had introduced a ₹2 platform fee per order in April 2023, which has since increased to around ₹14.99 per order plus 18% GST, according to the report.
Food-delivery and e-commerce companies collectively generate substantial revenue through such additional charges, with the report estimating annual collections of around ₹3,500-4,000 crore.
