Food delivery platform Zomato has started levying a 'pay on delivery fee' ranging from ₹5 to ₹20 on customers who opt for cash on delivery (COD), according to multiple reports. The move, spotted in the app's bill summary as a separate line item, signals the Eternal-backed company's push to monetise payment methods amid intensifying competition in India's food delivery market.

How the new COD fee works

The charge appears exclusively on orders where customers choose to pay in cash at the time of delivery. App screenshots shared by users reportedly show the fee most commonly set at ₹5, though some users have been billed ₹7 and, in select cases, as much as ₹20. Customers who pay via UPI, cards, or wallets are not subject to the additional charge.

The COD fee is separate from Zomato's existing platform fee, restaurant packaging charges, and GST — adding yet another line to an already layered bill summary that has drawn periodic consumer criticism.

Why Zomato is nudging users toward digital payments

Zomato currently processes an estimated 2.3–2.5 million food orders daily. Even a modest per-order levy at this scale can translate into hundreds of crores in annualised revenue. This comes amid a broader pattern: platform fees were first introduced across the industry in 2023, when Swiggy started with a ₹2 charge and Zomato followed. Earlier this year, Zomato raised its platform fee to ₹14.99 per order from ₹12.50, with GST charged separately.

The COD fee also aligns with a strategic interest in reducing cash-handling costs for delivery partners and improving reconciliation efficiency — a persistent operational pain point in high-volume, low-margin food delivery.

Competitive landscape and Swiggy's stance

Notably, Zomato's primary rival Swiggy has not introduced a similar COD fee so far, though it remains to be seen whether the company plans to follow suit. The competitive dynamics are shifting: Rapido's Ownly has been gaining traction in select cities, and Flipkart is reportedly piloting its Eat In food-delivery service, adding pressure on both incumbents to defend market share while protecting margins.

Recent restructuring at Zomato

The fee rollout comes on the heels of a round of workforce restructuring at Zomato. In August, the company reportedly laid off around 250 employees following a review of its customer delight operating model and organisational requirements. As part of the overhaul, Zomato discontinued its Customer Delight operations in Hyderabad and consolidated remaining in-house operations at a single location in Gurugram.

What's next for consumers

With each incremental fee, Zomato is effectively repricing convenience — testing how much the Indian consumer will absorb before switching platforms or cutting order frequency. Whether Swiggy mirrors the COD charge or uses its absence as a competitive differentiator could shape the next phase of the food delivery pricing war. Consumers can expect the bill breakdown to remain a flashpoint in platform–user trust.