Zomato Fee Hike: Ordering food online through Zomato could become slightly more expensive for customers choosing the cash-on-delivery option. The food delivery platform has introduced an additional ₹5 pay-on-delivery fee for certain cash payments, adding another charge to the existing costs associated with food orders.
Customers already pay a platform fee on Zomato, while restaurant packaging charges and GST may also be included in the final bill. With the latest fee, the total amount payable by users opting for cash on delivery could increase further.
Zomato Bill Now Shows Pay-on-Delivery Fee
The new charge is being reflected separately in the billing summary as a pay-on-delivery fee.
According to a report by Moneycontrol, customers selecting cash on delivery may see an additional charge. In some cases, users have reportedly been charged between ₹7 and ₹20, depending on the order and applicable charges.
This fee is separate from other components of the order bill, including the platform fee, restaurant packaging charges and GST.
The development comes as India’s food-delivery sector becomes increasingly competitive. Zomato and Swiggy are facing competition from emerging and established companies looking to expand their presence in the food-delivery space.
Rapido’s Ownly is attracting customers, while Flipkart has also been testing its food-delivery offering. Meanwhile, startup Swish has raised funding as it looks to expand its operations.
Even a ₹5 Fee Could Generate Significant Revenue
Although an additional ₹5 may appear relatively small to an individual customer, the impact could be substantial when applied across millions of daily orders.
Zomato handles approximately 2.3 million to 2.5 million food orders every day. If the company were to collect an additional ₹5 on each order, the potential additional revenue could range between ₹11.5 million and ₹12.5 million per day.
On an annualised basis, that works out to approximately ₹4.2 billion to ₹4.56 billion, assuming the charge applies consistently across the stated order volume.
The actual additional revenue could vary depending on how widely the fee is applied and how customer ordering behaviour changes.
Zomato Parent Eternal’s Share Performance
Zomato’s parent company, Eternal, has also seen notable movement in its share price.
On Friday, the stock closed at around ₹323 on the BSE, recording a gain of 0.78% during the session.
Over the previous three months, the stock had gained around 37%, while its six-month return stood at approximately 44%.
However, the longer-term performance has been mixed. Eternal’s shares were down around 1.54% over the previous year. Over a two-year period, the stock had gained approximately 18%, while the three-year return stood at around 218%.
Swiggy Currently Has an Advantage on Cash-on-Delivery Fees
One notable difference between the two leading food-delivery platforms is their approach to cash payments.
At present, Swiggy does not charge a separate cash-on-delivery fee, according to the information provided. This gives customers who prefer paying in cash another reason to compare the final cost between the two platforms.
If Zomato continues applying the additional charge, the difference in payment-related fees could become another factor influencing consumer choices between Zomato and Swiggy.
What Does the Zomato Fee Hike Mean for Customers?
The latest change means customers choosing cash on delivery may have to pay more than they previously did for the same food order.
While the additional charge may seem minor, frequent users could notice the difference over multiple orders. For Zomato, however, even a small fee applied across a large order base could potentially create a meaningful additional revenue stream.
As competition in India’s food-delivery market continues to intensify, delivery charges, platform fees and payment-related costs are likely to remain important factors for both consumers and companies.