Launch · Commerce & Consumer Brands
Zomato introduces cash-on-delivery fee on orders
By Startup Enthusiast ·

- Date
- Company
- Zomato
- What it does
- Online food ordering and delivery platform
- Kind
- Launch
- Stage
- public
- Based in
- Gurugram
- Founded
- 2008
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
Other articles talking about it
More on Zomato
- Zomato introduces pay on delivery fee for cash orders12 September 2026 · Policy
- Bernstein compares Zomato and Swiggy to Meituan11 September 2026 · Analysis
- Zomato lays off 240 employees in Hyderabad31 August 2026 · Layoffs · 0
- Zomato bans analogue dairy dishes on its platform31 August 2026 · Policy
- Zomato launches vending machine pilot in Gurugram offices21 August 2026 · Launch
- Zomato rebranded as Eternal Ltd. and expanded its business lines21 August 2026 · News
- Zomato food delivery revenue rises 37% in Q1 FY2724 July 2026 · Results
- Zomato pilots AI voice bot for food ordering15 July 2026 · Launch
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