Food delivery leader Zomato has introduced an additional fee for customers choosing the cash-on-delivery option, ranging from ₹5 to ₹20. The company aims to monetise payment processing costs and push consumers toward digital prepayments.
₹5 to ₹20
Cash Surcharge Range
⏳ Time Machine
How today’s news fits into the bigger picture
2010
COD Concept Born
Cash-on-delivery is pioneered in India, overcoming consumer mistrust and sparking a massive boom in e-commerce adoption.
2016
Demonetisation Push
India's demonetisation drive forces consumers to experiment with digital wallets, accelerating the foundational shift toward electronic finance.
2022
UPI Dominates Markets
UPI transactions cross 6 billion monthly, establishing digital payments as the default, friction-free choice for urban deliveries.
Today
Zomato rolls out an additional cash-on-delivery handling fee ranging from ₹5 to ₹20.
What happens next?
Competitors like Swiggy are expected to introduce similar cash-handling fees by early 2027.
Zomato is making physical cash transactions more expensive. The food delivery giant has quietly rolled out a cash-on-delivery (COD) handling fee, typically charging an extra ₹5 to ₹20 per order. While digital payments like UPI and credit cards are processed instantly and seamlessly, handling physical cash introduces operational headaches. Delivery partners must carry physical change, face safety risks carrying cash, and companies face delays reconciling cash collections at the end of the day. By adding this surcharge, Zomato is nudging users to pay digitally. It is also a smart monetisation play; even a tiny ₹5 fee across millions of daily orders directly boosts Zomato's bottom line amid rising competition in the quick-commerce and food delivery sectors.
💭 If you're wondering…
No, cash-on-delivery remains an option, but you will simply be charged an extra handling fee of ₹5 to ₹20 at the final checkout screen.
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