Cash on Delivery Gets Costlier on Zomato as Platform Adds Up to INR 20 Fee for Cash Payments

Eternal-backed food delivery platform Zomato has introduced a "pay on delivery" fee for orders completed using Cash on Delivery (COD). The extra charge ranges between ₹5 and ₹20 depending on the location and order parameters, marking the platform's latest effort to monetize payment methods and encourage digital transactions.

The new line item appears separately in the app’s final bill summary for users opting to pay cash upon order receipt. Screenshots from app users indicate that while the baseline fee commonly stands at ₹5, certain orders and locations incur charges of ₹7 to ₹20. The COD fee is billed over and above existing charges, including Zomato’s standard platform fee, restaurant packaging costs, and applicable GST. Customers selecting online payment options—such as UPI, credit/debit cards, or net banking—are exempt from the levy. Zomato Hikes Platform Fee Again to INR 14.90 as Rapido’s Zero-Fee Entry Heats Up Food Delivery War.

This update comes as Zomato continues to fine-tune its unit economics in an increasingly competitive market. Processing an estimated 2.3 million to 2.5 million daily food orders, even nominal per-order levies can generate hundreds of crores in annualized incremental revenue. Beyond direct monetization, cash transactions carry operational overheads related to cash collection, physical handling, and reconciliation for delivery partners. Introducing a cash surcharge provides a financial incentive for customers to migrate toward digital payments.

The fee adjustment follows a broader trend of incremental pricing updates across India’s quick-commerce and food delivery ecosystem. Platform fees were first introduced in 2023 when competitors initially instituted a ₹2 charge per order. Over time, these costs have expanded; Zomato revised its general platform fee to ₹14.99 per order earlier this year (exclusive of GST).

While primary rival Swiggy has not yet implemented a dedicated fee for cash-on-delivery orders, new market entrants continue to reshape industry dynamics. Competitors like Rapido's Ownly are expanding their footprint, while retail giant Flipkart has begun piloting its own food-delivery service, Eat In.

(The above story first appeared on LatestLY on Sep 12, 2026 03:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).