Ordering food from food delivery platform Zomato has now become expensive. Now, if you choose the option of ‘Cash on Delivery’ i.e. payment in cash at the time of delivery while ordering food from Zomato, then you will have to pay Rs 5 more. This new fee will be added separately in the bill summary of the app under the name ‘Pay on Delivery Fee’. This fee is visible varying from Rs 7 to Rs 20 in the app bill of some users. However, users who make online payment through digital means like UPI, credit/debit card or net banking will not be charged this extra charge. Apart from the platform fee and packing charge, new charges will be imposed. This new ‘pay on delivery fee’ imposed by Zomato is different from the company’s platform fee, restaurant packaging charge, delivery charge and GST. This means that now you will have to pay separately for food as well as packaging, delivery, platform and payment in cash. However, Swiggy has not implemented any such charge at present. The company gets a profit of crores of rupees from the small fee. About 23 to 25 lakh orders are made every day on Zomato. If even a small extra charge of just Rs 5 is imposed, the company can earn up to Rs 1.25 crore more every day. Even if not all customers choose the option of cash on delivery, this decision will still increase Zomato’s profits by hundreds of crores of rupees annually. Platform fees started from ₹2 and reached ₹14.99. The trend of food delivery platforms adding different charges on orders is not new. In April 2023, Zomato and Swiggy started with just ₹2 platform fee, which has now increased to ₹14.99 per order (plus 18% GST). This charge of ₹ 2 to ₹ 15 seems small, but e-commerce and food delivery companies earn a huge amount of ₹ 3,500 to ₹ 4,000 crore annually from these small charges. Competition has increased in the food delivery market. This decision of Zomato has come at a time when competition has become very intense in the quick-commerce and food-delivery sectors of the country. Rapido’s ‘Only’ platform and Flipkart’s new ‘Eat In’ service are entering this market. Apart from this, new startup companies like Swish have also recently received new funding, which has further increased the pressure on established companies like Zomato and Swiggy to increase their profitability. —————- Also read this news… New Tap and Pay feature in UPI: Payment from mobile will be like ATM card; Will work even without internet, 5000 limit, now you will be able to make UPI payment from your phone without scanning QR code and entering PIN. For this you have to tap your phone on the swap machine like an ATM and credit card. With this, up to Rs 5,000 can be sent at one time. National Payments Corporation of India on Friday launched two new features to make UPI payments easier. Read the full news…
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