Zomato has introduced a new fee for customers who pay via cash on delivery (COD), with charges ranging from ₹5 to ₹21 on select orders. This fee is in addition to existing platform, delivery, packaging, and tax charges, marking a fresh monetisation layer on its food delivery service, according to inc42.com.
The new COD fee aims to offset handling costs and reduce order risk associated with cash payments. By making cash payments more expensive, Zomato encourages users to switch to online payment methods. This move follows a previous platform fee hike earlier this year, where charges increased from ₹12.50 to ₹14.90 per order, signaling a continued effort to improve margins.
Zomato’s introduction of a COD fee comes amid growing competition in the food delivery sector. The company’s strategy to monetise every order reflects broader industry trends where firms seek to boost revenue through additional charges. The COD fee specifically targets payment behaviour, treating cash payments as a premium option rather than a neutral choice.
This latest fee adjustment adds to Zomato’s layered pricing model, which now includes platform fees, delivery charges, and packaging costs. The company’s approach to monetisation suggests a focus on enhancing profitability through incremental charges on its sticky customer base.