Zepto, Blinkit, Instamart club orders to cut costs, boost efficiency

The move extends delivery times and lowers per-order payouts for delivery partners

In a move towards achieving profitability and sustainable scaling, quick commerce (qcom) platforms are increasingly resorting to batching or clubbing multiple orders.

 

Top players like Zepto, Blinkit, Swiggy Instamart, Flipkart Minutes, and BigBasket are already using this strategy to enhance efficiency and optimise inventory management.

 

Order batching or clubbing is a process where a dark store packs more than one order (usually two) simultaneously and the delivery partner takes them to the customers in a single run. Qcom platforms use advanced algorithms to identify route overlaps and align delivery windows.

 

Qcom platform Zepto said the company has always used smart order batching to enhance delivery efficiency. “By grouping nearby orders, we reduce return trips and optimise routes for our delivery partners, thereby minimising delays even during peak hours. Delivery partners are rewarded with additional incentives on batched orders, making each trip more productive while creating value for both users and partners,” Vikas Sharma, chief operating officer of the platform, said.

 

It's not just Zepto, Blinkit, and Swiggy Instamart also routinely batch orders. Notably, in the qcom domain, it's becoming a common operational practice rather than an occasional one. Similarly, Flipkart Minutes and BigBasket noted that the companies opt for batching orders during peak intervals and festival rushes.

 

Flipkart Minutes, the qcom arm of e-commerce firm Flipkart, started batching orders in August this year for deliveries within a 500-metre radius. According to a company spokesperson, “At Flipkart Minutes, we are focused on building a fast, reliable, and efficient hyperlocal delivery experience. To streamline operations during periods of high order volumes, we introduced batching in August 2025 for deliveries placed within a 500-metre radius. When a micro-fulfillment store sees a surge in demand, the system automatically batches nearby orders to ease the load. This ensures there is no impact on delivery timelines, while enabling wishmasters to earn a flat incentive for each additional delivery, with minimal additional travel.”

 

BigBasket, too, said batching has been integral to the company's operations since its slotted delivery model began. The firm is currently using the strategy in Tier-I and Tier-II cities.

 

Aashutosh Taparia, national head of LMD (Last Mile Delivery) at BigBasket, said, “The routing engine plans batches using the customer's promised ETA (expected time of arrival) and optimises routes to reduce kilometres per order and cut store-to-customer back-and-forth trips. The goal is to maintain service standards and manage demand stress, not reduce costs. There is minimal to no impact on the delivery promise. We are trying to optimise this further with better algorithms. Riders typically see better earnings due to higher drop density and improved delivery efficiency per hour.”

 

Satish Meena, founder of Datum Intelligence, a consumer technology-focused market research firm, mentioned that the average cost per order for qcom companies is typically around ₹40-₹50. But, companies are trying to cut it down to around ₹30 using various measures (one being order batching), he noted.

 

However, while this strategy helps reduce the cost per delivery by optimising routes, it also slightly extends delivery times and lowers per-order payouts for delivery partners. A few delivery partners Business Standard spoke to said that batching orders often cuts into their earnings, as combined deliveries fetch lower payouts than completing the orders individually.

 

A delivery partner who works with Zepto and Instamart said, “When we leave the dark store with two orders, we only see the location of the first customer to whom we have to deliver. Once we mark it done, then we see the location of the second customer. For the first customer, the order usually arrives on time, but for the second customer, the delivery time increases by 5-10 minutes as we drive or walk to the location.” The partner showed on his mobile screen that he earned ₹45 for a batched Instamart order, while on non-batched orders, he earned ₹26 each for many locations.

 

Likewise, a Zepto delivery person showed that he earned ₹14 each on many independent orders, but in the case of clubbing, he earned ₹22 (₹14 + ₹8).

 

The strategy comes in handy as the qcom market is ballooning and companies ramp up capabilities to attract customers while achieving profitability and reducing cash burn. For instance, Zepto and Swiggy Instamart have launched campaigns where the companies are not charging any fees (handling fee, surge charge, delivery fee, etc.) over a certain order value. The two companies are also raising funds to build a war chest to increase their market share.

 

“Even when qcom companies are batching orders, they are taking delivery fees from both customers. The process reduces the cost that companies incur. Once they optimise operations, some of the cost will be passed on to customers in the form of different offers and campaigns. Say, Instamart has announced nil delivery on orders above ₹299, and Zepto is giving free delivery on orders above ₹99,” Meena added.

 

According to a new report, the country's qcom market is projected to grow from $5 billion in FY25 to $30 billion by FY30, up from just $300 million in FY22.