Zomato just introduced a new "Pay on delivery fee" ranging from Rs 5 to Rs 21 for cash orders. This specific charge explicitly prices the operational friction of handling cash and QR payments at the doorstep, separate from other existing fees. The move could net the company up to Rs 475 crore annually, even if only a fraction of orders are CoD.
How We Got Here
Zomato recently increased its platform fee to Rs 14.9 per order in March 2026, generating Rs 154 crore in Q1 FY27 alone. This follows Swiggy's lead in 2023, when it first introduced a Rs 2 platform fee, with Zomato quickly adopting a similar charge.
The Numbers
- The "Pay on delivery fee" is separate from existing platform, restaurant, packaging, and delivery partner fees.
- Zomato delivered 979 million orders in FY26, averaging 2.7 million orders per day.
- An anonymous source cited "additional operational processes, lot more coordination in handling cash and QR-based payments" as the reason for the new charge.
- Rival Swiggy has not yet introduced a similar charge for its cash on delivery orders.
- Zomato declined to comment on the fee's basis, which remains unclear regarding factors like user location or order value.
What Happens Next
🇮🇳 Why This Matters for India
For the millions of daily wage earners and unbanked users in Tier-2 and Tier-3 cities relying on CoD, this fee creates a new friction point for an essential service.
The Take
Zomato is explicitly pricing the operational friction of cash payments, nudging users towards digital while improving unit economics and reducing logistics overhead. Expect Swiggy to follow suit within 90 days, but at a slightly lower, more palatable flat fee across the board.
Source:
MediaNama ↗