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Policy · Commerce & Consumer Brands

Zomato introduces pay on delivery fee for cash orders

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Zomato logo
Date
Company
Zomato
What it does
Online food ordering and delivery platform
Kind
Policy
Founded
2008
Sector
Commerce & Consumer Brands

What they do

Zomato introduced a 'Pay on Delivery Fee' of typically Rs 5 for cash-on-delivery orders

What happened

The fee is displayed separately and applies only to cash-on-delivery orders, not prepaid ones

Why it matters

It could generate Rs 420-456 crore annually based on daily order volumes

The details

  • Zomato introduced a 'Pay on Delivery Fee' for cash-on-delivery orders.
  • The fee is typically Rs 5, varies up to Rs 21 or 2% of order value, and is capped at Rs 30.
  • The fee is displayed separately from platform fee, packaging charges, and GST.
  • The fee applies only to cash-on-delivery orders; prepaid orders are not charged.
  • Zomato displays a message encouraging customers to pay online to avoid the fee.
  • Zomato processes an estimated 2.3-2.5 million food orders per day.
  • At Rs 5 per order, the theoretical annual revenue from this fee is Rs 420-456 crore.

The bigger picture

  • Zomato's platform fee is Rs 14.99 per order (pre-GST), raised from Rs 12.50 earlier in 2026.
  • Zomato began testing a platform fee of Rs 2 per order in 2023.
  • Competitor Swiggy has not introduced a similar cash-on-delivery fee.
  • Swiggy's platform fee is Rs 17.58 per order, raised from Rs 14.99.
  • Zomato laid off around 240-250 employees in August 2026 and shut Hyderabad customer support.

About the business

  • Zomato is an online food ordering and delivery platform and India's #1 food delivery app.
  • It has 3,00,000+ restaurants in 800+ cities and has delivered 3 billion+ orders.
  • Zomato Gold offers free delivery within 7 km and up to 30% extra off at 20,000+ partner restaurants.
  • Zomato subsidiaries include blinkit (30,000+ products delivery), district (events/movies/dining), and hyperpure (supply chain for restaurants).
  • Zomato acquired Uber Eats India business in an all-stock deal in 2020.
  • Zomato is experimenting with rapid food delivery via vending machines 'Zomato Now' in Gurugram corporate offices.
  • Eternal (Zomato) Q1 FY27 consolidated net profit was Rs 92 Cr, up ~3.7X from Rs 25 Cr year-ago.
  • Eternal Q1 FY27 operating revenue was Rs 20,211 Cr, up 182% YoY.

Founders

  • Deepinder Goyal, Co-founder
  • Pankaj Chaddah, Co-founder

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