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Launch · Commerce & Consumer Brands

Zomato introduces cash-on-delivery fee on orders

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Zomato logo
Date
Company
Zomato
What it does
Online food ordering and delivery platform
Kind
Launch
Stage
public
Based in
Gurugram
Founded
2008
Sector
Commerce & Consumer Brands

What they do

Zomato is India's largest food delivery app, operating in over 800 cities

What happened

It has introduced a 'Pay on Delivery Fee' for cash-on-delivery orders, varying from Rs 5 to Rs 30

Why it matters

The fee encourages prepaid orders and reduces cash-handling losses, while competitors like Swiggy have not followed

The details

  • Zomato has introduced a 'Pay on Delivery Fee' for cash-on-delivery orders.
  • The fee amount varies and is reported as Rs 5, Rs 7, Rs 20, Rs 21, or 2% of order value up to a Rs 30 cap.
  • The fee is not charged on prepaid (online) orders.
  • Zomato's platform fee is Rs 14.99 per order (plus GST), increased from Rs 12.50 earlier in 2026.
  • The platform fee started at Rs 2 in 2023, was raised to Rs 10 in October 2024, then Rs 12.50, and now Rs 14.99.
  • Zomato has over 27 million average monthly transacting customers in Q1 FY27.
  • It has over 300,000 monthly active restaurant partners.
  • Zomato's parent Eternal reported consolidated adjusted revenue of Rs 20,648 crore in Q1 FY27, up 173% year-on-year.

The bigger picture

  • The cash-on-delivery fee is seen as encouraging prepaid orders and reducing cash-handling losses.
  • Some users have questioned the legality of the cash-handling fee, citing RBI guidelines.
  • Zomato's main competitor Swiggy has not introduced a similar cash-on-delivery fee.
  • The India food delivery market is a functional duopoly (Zomato/Eternal and Swiggy), with challengers like Rapido's Ownly and Flipkart's Eat In emerging.
  • Zomato founder Deepinder Goyal has addressed lower-cost food-delivery models in shareholder communications.

About the business

  • Zomato is an online food ordering and delivery platform, India's number one food delivery app.
  • It operates in over 800 cities and has delivered over 3 billion orders.
  • Zomato Gold offers benefits like free delivery within 7 km and up to 30% extra off at 20,000+ partner restaurants.
  • Zomato's parent Eternal also operates Blinkit (quick commerce), District (going-out), and Hyperpure (B2B supplies).
  • Zomato entered the food-delivery market in 2015 and acquired Uber Eats India in an all-stock deal in 2020.
  • Zomato's estimated daily food orders are 2.3-2.5 million.
  • Potential annual revenue from a Rs 5 fee on all orders is estimated at Rs 420-456 crore, but cash orders are a fraction of total orders.
  • Zomato and Blinkit helped 2.1 lakh delivery partners file ITRs for FY25-26, resulting in Rs 33.6 crore tax refunds.
  • 75% of delivery partners who filed ITRs were first-time filers (~1.57 lakh).

The deal

Type
launch

Founders

  • Deepinder Goyal, CEO of Zomato

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