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Zomato introduces cash on delivery fees for customers
Zomato has introduced a new ‘pay on delivery fee’ for customers opting for cash on delivery (COD) instead of digital payment methods. The additional charge typically ranges from ₹5 to ₹20 per order, depending on the location and specific order details. This fee is applied separately from existing costs such as the platform fee, restaurant packaging charges, and GST.
The company aims to monetize payment methods and encourage a shift toward digital transactions like UPI, credit, and debit cards. Zomato noted that COD orders often result in higher cancellation and rejection rates compared to prepaid orders, which increases operational and logistics costs.
This move comes amid intensifying competition in the Indian food-delivery sector from players like Rapido’s Ownly and Flipkart’s Eat In. While Zomato’s main competitor, Swiggy, has not yet implemented a similar COD fee, the industry has seen a trend of increasing consumer-facing charges, including platform fees that Zomato raised to ₹14.99 earlier this year.
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What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The company processes between 2.3 and 2.5 million food orders daily. bhaskarlive.in · www.mangalorean.com
- [● 3 SOURCES] Zomato has introduced a fee for cash-on-delivery orders ranging from Rs 5 to Rs 20. bhaskarlive.in · businessconnectindia.in · www.mangalorean.com
- [● 2 SOURCES] Swiggy has not yet implemented a similar fee for cash-on-delivery orders. bhaskarlive.in · www.mangalorean.com
- [● 2 SOURCES] Zomato laid off approximately 250 employees during a recent workforce restructuring. bhaskarlive.in · www.mangalorean.com
- [● 3 SOURCES] The cash-on-delivery fee does not apply to customers using digital payment methods. bhaskarlive.in · businessconnectindia.in · www.mangalorean.com
- [● 2 SOURCES] Zomato increased its standard platform fee from Rs 12.50 to Rs 14.99 earlier this year. bhaskarlive.in · www.mangalorean.com