Zomato adds Pay on Delivery fee for cash food orders
Zomato has introduced a variable fee on cash-on-delivery food orders, adding a payment-linked monetisation lever alongside its platform fee. The reported 2% formula, capped at ₹30, has not been publicly confirmed; prepaid orders do not incur the charge.
What happened
Zomato has introduced a variable Pay on Delivery Fee for cash food orders, reportedly 2% of order value capped at ₹30. The move adds a payment-method-linked
Key facts
- Pay on Delivery Fee: 2% of order value, capped at ₹30 (unconfirmed)
- ₹21 COD fee on ₹850 item-total order
- ₹14.99 platform fee per order before GST
- ₹1,019 final cash payable in cited order
What changed
Zomato has introduced a variable Pay on Delivery Fee for cash food orders, reportedly 2% of order value capped at ₹30. The move adds a payment-method-linked monetisation lever alongside its ₹14.99 platform fee; prepaid orders avoid the charge.
Why this matters
Zomato’s cash-order fee creates a clear incentive to shift users toward prepaid payments, but operators should watch for conversion friction among cash-reliant customers as the reported 2% charge, capped at ₹30, remains unconfirmed.
What to watch
- Official disclosure of the fee amount, cap, geographic rollout and exemptions.
- Changes in cash-on-delivery share, prepaid conversion and checkout abandonment rates.
- Order-frequency and average-order-value trends in cash-heavy customer cohorts.
- Cancellation, return-to-origin, rider cash-settlement and fraud-loss metrics.
- Swiggy or other delivery-platform responses on COD pricing.