Zomato has reportedly introduced a separate “Pay on Delivery” fee for customers choosing to pay for food orders in cash. The additional charge, which can reportedly range from ₹5 to ₹30 or more, is being displayed separately on the order bill along with platform fees, delivery charges and GST.
The move appears aimed at encouraging customers to shift from cash payments to prepaid online transactions while creating another potential revenue stream for the food-delivery platform.
Zomato Pay on Delivery Fee Explained
Under the reported new fee structure, customers selecting cash payment at the time of delivery may see an additional Pay on Delivery charge added to their bill. The amount can vary depending on the order and other factors.
Customers choosing online payment do not have to pay the additional fee. Zomato is also reportedly displaying prompts encouraging users to switch to digital payments, including messages such as “Save ₹21 by paying online now.”
The separate fee means customers may now see several charges on their final bill, including the food cost, delivery fee, platform fee, taxes and the Pay on Delivery charge where applicable.
Why Is Zomato Charging the Fee?
The move could be part of Zomato’s broader effort to improve margins and encourage digital payments. Cash-on-delivery orders can create additional operational challenges for food-delivery companies, including payment collection, order cancellations and instances where customers do not accept orders.
Encouraging prepaid orders could therefore help reduce some of these risks while making the payment process simpler for delivery partners.
For restaurants, fewer rejected cash orders could also potentially reduce food wastage and improve order completion rates.
Customers Have Mixed Reactions
The reported fee has triggered mixed reactions among Zomato customers. Some users have criticised the additional charge, arguing that customers who prefer cash payments are effectively being penalised.
Others believe the move could have practical benefits for restaurants and delivery workers by reducing problems associated with cash collection and failed deliveries.
The debate also highlights the increasing number of charges associated with food-delivery orders, with customers already paying delivery fees, platform fees, taxes and other applicable charges.
Zomato’s Growing Order Volume
Zomato handles millions of food-delivery orders, and even a relatively small additional charge on a portion of transactions could have a meaningful impact on revenue.
Reports suggest the platform handles around 2.3 million to 2.5 million daily orders, making payment behaviour an important factor in its business model.
At present, rival food-delivery platform Swiggy has not reportedly introduced a similar Pay on Delivery fee on a broad basis, although pricing and fee structures can change.
For customers, the simplest way to avoid the additional charge is reportedly to choose online payment while placing the order. Whether Zomato’s latest move becomes a long-term feature or changes based on customer response remains to be seen.