Hyderabad, Sept. 12 (Maxim News): Zomato has started charging customers an additional Rs 5 for choosing cash on delivery, according to a national media report.
The new Zomato COD charge appears separately in the bill summary on the food delivery platform. The standard fee reportedly stands at Rs 5 in many cases.
However, the charge can reportedly range from Rs 7 to Rs 20 in some areas and for certain orders. The amount appears to depend on the location and order details.
Customers who pay online will not have to pay the additional charge. The fee applies only when customers choose to pay in cash at the time of delivery.
Users can avoid the charge by paying through UPI, credit cards, debit cards or net banking. The move adds another fee to the various charges already included in food delivery bills.
Zomato COD Charge Adds to Existing Fees
Zomato already collects a platform fee from customers on food orders. The platform fee currently goes up to Rs 14.99 per order, according to the report.
Customers may also pay restaurant packaging charges and applicable GST. The new Zomato COD charge will therefore add another cost for customers who prefer cash payments.
The company processes an average of 2.3 million to 2.5 million orders every day. That translates to around 23 lakh to 25 lakh orders daily.
Therefore, even a small fee on cash orders could generate significant additional revenue at the company level. The report estimates that the charge could bring in hundreds of crores of rupees annually if applied widely.
The actual additional revenue will depend on how many customers choose cash payments. It will also depend on the applicable fee in different locations and orders.
The new charge comes as food delivery platforms continue to explore different revenue streams. Companies have increasingly relied on platform and checkout related fees alongside their core delivery operations.
Swiggy Yet to Introduce Similar Cash Fee
Zomato’s main competitor, Swiggy, has not introduced a similar cash on delivery fee so far, according to the report.
The food delivery market has also seen growing competition from newer platforms. Rapido and Flipkart have entered or expanded their presence in the broader food delivery space.
Against this backdrop, Zomato continues to focus on expanding its revenue sources. The introduction of another checkout fee has therefore drawn attention among market watchers.
For customers, the impact will depend on their preferred payment method. Those who use online payments will not face the new cash payment fee.
However, customers who prefer to settle their bills with cash during delivery will have to account for the additional charge. The fee will appear separately in the order bill summary.
The move highlights the growing role of additional charges in food delivery transactions. It also shows how platforms are looking at small fees to strengthen revenue across their large order volumes.(Maxim News)
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