Zomato adds variable cash-on-delivery fee as food-delivery charges rise

Zomato has introduced a variable Pay on Delivery fee for cash orders, nudging users toward digital payments. The move follows platform-fee hikes by Zomato and Swiggy as competition intensifies from Flipkart, Rapido and Swish.

— Source publishedSat, 12 Sept, 2026, 20:12 IST·First seen Sat, 12 Sept, 2026, 20:18 IST·Source Mint · Companies

What happened

Zomato has introduced a variable Pay on Delivery fee for cash food orders, encouraging digital payments. The move follows platform-fee increases by Zomato and

Key facts

  • Zomato platform fee: ₹14.90 per order, up from ₹12.50 (nearly 20%)
  • Swiggy platform fee: ₹17.58 per order, up from ₹14.99 (more than 17%)
  • Flipkart Eat In reported restaurant commission: 10%–11%
  • Swish funding: $24 million

Why this matters

The move underscores the strategic value of payments infrastructure and low-cost fulfillment partnerships as delivery platforms seek margin protection without further broad-based fee increases.

What to watch

  • Checkout-price comparisons between COD and UPI/card orders across cities, basket sizes and peak periods.
  • Changes in Zomato's COD order mix, total order growth, average order value and contribution margin in subsequent disclosures.
  • Swiggy's response: matching COD charges, fee waivers, membership benefits or public messaging around transparent pricing.
  • Consumer complaint volume, social-media backlash and app-rating changes tied to platform and payment fees.
  • Promotional intensity and market-share movement by Flipkart, Rapido, Swish and other delivery challengers.
  • Any government or consumer-protection guidance on mandatory fee disclosure, payment surcharges or checkout pricing.
  • Zomato may make the COD fee dynamic by location, basket value, weather, peak demand, customer order history and fraud/return risk.
  • Swiggy may match a COD-specific fee or instead subsidize COD temporarily to acquire customers frustrated by Zomato's all-in price.
  • Both incumbents are likely to expand membership, wallet, UPI-linked and bank-partner discounts that offset fees only for digital payment users.
  • Restaurants may face renewed pressure to fund promotions or accept higher ad spending as platforms seek to protect margins while preserving demand.
  • Quick-commerce and mobility-linked challengers such as Swish, Flipkart and Rapido may position simpler, lower-fee checkout as a differentiation lever.

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