Zomato adds variable fee for cash-on-delivery food orders

Zomato has begun displaying a Pay on Delivery Fee on cash-on-delivery orders. The charge varies by customer and order value, though the calculation basis has not been disclosed. Rival Swiggy does not currently levy a separate COD fee.

— Source publishedSat, 12 Sept, 2026, 15:43 IST·First seen Sat, 12 Sept, 2026, 15:49 IST·Source The Hindu BusinessLine

What happened

Zomato has introduced a variable cash-on-delivery fee for food orders, displayed as a Pay on Delivery Fee. The charge differs by user and order value; its

Why this matters

The move strengthens the strategic value of prepaid-payment, wallet and fintech partnerships, while creating an opening for rivals to position fee-free COD as a customer-acquisition differentiator.

What to watch

  • Change in Zomato's prepaid-payment mix, COD share, checkout conversion and reorder rates after rollout.
  • Evidence that the fee is concentrated on low-AOV orders, specific cities, new users or high-cancellation cohorts.
  • Social-media complaints, app-rating deterioration, consumer-protection scrutiny or demands for greater fee transparency.
  • Swiggy introducing COD-related promotions, explicit no-fee messaging or matching risk-based charges.
  • Management commentary on contribution margin, cancellation rates, delivery-partner cash reconciliation costs and customer acquisition economics.
  • Whether Zomato begins waiving the fee above a basket threshold or bundles waivers into Gold/loyalty benefits.
  • A/B test fee levels and waiver thresholds by customer cohort, city, order value and historical COD cancellation behavior.
  • Prominently surface prepaid discounts, UPI incentives or loyalty benefits to make payment-method switching feel like a reward rather than a penalty.
  • Expand variable charges to higher-risk fulfillment situations, such as distant deliveries, late-night orders or customers with repeated COD cancellations.
  • Use targeted retention vouchers for frequent COD users who show reduced conversion after seeing the fee.
  • Monitor Swiggy's pricing and promotion response; prepare localized fee waivers where competitive share loss is highest.

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