Zomato Orders: Zomato Adds Extra Fee for ‘Cash on Delivery’ Food Orders

Ordering food from food delivery platform Zomato has become expensive. According to information on Food delivery platform Zomato, it has started charging customers a fee for cash-on-delivery orders. Now, customers will have to pay an additional Rs 5 for ‘cash on delivery’ while ordering food from Zomato. This new fee will be added separately to the app bill under the name ‘Pay on Delivery Fee’. This new ‘pay on delivery fee’ imposed by Zomato is separate from the company’s platform fee, restaurant packaging charge, delivery charge and GST. This means that now the customer will have to pay separately for food, packaging, delivery, platform and cash payment. This fee is appearing in some users’ app bills, varying from Rs 7 to Rs 20. However, users who make online payments through digital channels like UPI, credit card/debit card or net banking will not be charged any additional fees.

Around 2.3 to 2.5 lakh orders are placed on Zomato every day. Most of these are done through cash on delivery. With an additional charge of just Rs 5, the company will earn an additional revenue of up to Rs 1.25 crore per day. Although Swiggy has not imposed any such charge so far.

The practice of food delivery platforms charging different fees on orders is not new. In April 2023, Zomato and Swiggy started with a platform fee of just Rs 2, which has now increased to Rs 14.99 (including 18% GST) per order. At first glance, the charges of Rs 2 to Rs 15 seem small, but e-commerce and food delivery companies are earning a hefty revenue of Rs 3,000 to 4,000 crore annually from these small charges.

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