Zomato to charge extra fee on cash on delivery orders

Online food delivery app Zomato has started charging a separate fee from customers who pay cash on delivery, or COD. The company says the new charge has been introduced to encourage digital payments and keep operational costs under control.

How much the charge will be depends on the user and the value of each order. The change was noticed on the company's app on Saturday, where it is shown in the order bill as a "pay on delivery fee". The charge applies only when customers choose to pay in cash at the time of delivery. The amount is not fixed and varies across orders of different values.

It is not yet clear on what basis the charge is being decided, that is, whether it depends on the order value, location or some other factor.

Rival company Swiggy is currently not charging any extra fee on cash on delivery orders. It remains to be seen what effect Zomato's decision has on customers.

The move comes at a time when food delivery companies are experimenting with new charges and revenue models. Zomato already charges a platform fee on food orders, in addition to delivery charges, packaging charges and other applicable fees. With this new charge added, the total cost of an order will automatically go up, so customers should keep this in mind while ordering food online.