Zomato Introduces Cash Payment Fee

Zomato has introduced a separate fee for customers who pay in cash for their food orders, known as a 'Pay on Delivery Fee'. This fee varies by user and order value, and is levied when customers choose to pay in cash at delivery.

The move comes after Zomato raised its platform fee by nearly 20% to ₹14.90 per order in March, up from ₹12.50 previously. Similarly, Swiggy pushed its platform fee up by more than 17% to ₹17.58 per order from ₹14.99. The new 'Pay on Delivery Fee' is an additional charge that makes cash-on-delivery (COD) orders more expensive, and is intended to encourage customers to switch to online payments.

The development is part of a larger trend in India's food delivery market, where companies are experimenting with different fee structures and monetisation models. The market is becoming increasingly competitive, with new players such as Flipkart and Rapido entering the scene. Flipkart is piloting its food delivery service Eat In in Bengaluru, and is reportedly considering a 10%–11% commission on restaurant orders. Rapido, on the other hand, is expanding its food delivery push through Ownly, which it formally launched in March 2026.

## Why it matters The introduction of the 'Pay on Delivery Fee' is significant because it reflects the changing dynamics of India's food delivery market. As more players enter the market, companies are looking for ways to stay competitive and increase revenue. The fee is also likely to affect customers who prefer to pay in cash, and may encourage them to switch to online payments. However, the exact basis for determining the fee, and whether it is linked to factors such as order value, location, or other parameters, could not be immediately ascertained.

Zomato did not respond to queries about the new fee, leaving customers to wonder about the implications of the change. As the food delivery market continues to evolve, it remains to be seen how customers will respond to the new fee, and how it will affect the overall landscape of the industry.

## What happens next The introduction of the 'Pay on Delivery Fee' is likely to have a significant impact on Zomato's customers and the wider food delivery market. As customers become aware of the new fee, they may start to explore alternative payment options or switch to other food delivery platforms. The move is also likely to prompt other companies to review their own fee structures and monetisation models, leading to a more competitive and dynamic market.