Zomato has begun charging customers an additional cash-on-delivery fee of at least ₹5 on food orders, with the charge reportedly reaching ₹20 in some locations, adding another cost for users who choose to pay in cash.
The development was reported by Business Standard on September 12, citing reports from several social media users. Zomato had not immediately issued a statement on the additional levy at the time of publication.
The cash-on-delivery fee is being charged separately from the other costs that may appear on a customer’s bill. These include the delivery fee, platform fee, goods and services tax on the total items in the cart, GST on the delivery partner fee, GST on the platform fee and restaurant packing charges.
The additional charge places cash payments within the wider fee structure used by app-based food-delivery services. A platform fee is an additional amount charged by digital platforms to cover operational costs, maintenance and technology improvements. The cash-on-delivery fee would add a separate payment-related cost for customers who do not use digital payment methods.
Zomato’s platform fee has also increased this year. In March, the company raised it by 19.2 per cent to ₹14.90 from ₹12.50, according to information cited in the report. Based on information available on Zomato’s mobile application, the platform fee is currently ₹14.99, excluding GST.
The changes mean that customers choosing cash payment may see multiple charges added to the base value of their food order. The total amount can also vary according to delivery charges, taxes, restaurant packing charges and the location in which the order is placed. The reported variation in the cash-on-delivery fee, from at least ₹5 to as much as ₹20, indicates that the charge is not uniform across all locations mentioned in the reports.
Zomato is not the only platform facing scrutiny over additional charges connected with cash payments. On the quick-commerce side, Zepto has been accused of adding up to ₹25 extra for such orders. Rival food-delivery platform Swiggy has not introduced an additional cash-on-delivery processing fee, according to the report.
For urban consumers, the development highlights how the cost of app-based convenience is increasingly divided across several separate line items rather than reflected only in the listed price of the meal. Customers using cash will need to check the final order summary for the applicable charges before completing a purchase.
The next confirmed development is Zomato’s response to the reported fee and clarification on the locations, amount and basis of the cash-on-delivery charge.
