Insider

What it costs to put a rider on the road

Every chemist has a boy who delivers. Almost none knows what each trip costs. Here is the arithmetic, with the assumptions shown, so you can replace them with your own.

Ask a chemist what his delivery costs and he will say "nothing, the boy does it". The boy has a salary. The boy has a bike. The boy spends forty minutes a day standing at the counter waiting for a bag. The cost is real; it is just not written anywhere.

When you build a platform that promises medicine from the neighbourhood pharmacy delivered in minutes, you do not get to leave it unwritten. Here is the arithmetic. Every number is an assumption and I have marked it as one, so you can cross it out and put in your own.

The assumptions

ItemAssumptionWhy this number
Rider wage₹22,000 a month, full time, including incentivesMid-range for a two-wheeler rider in Bengaluru in 2026
Working days26 a monthSix-day week
Hours on shift9 a dayIncludes idle time between orders
Two-wheeler mileage45 km per litreA typical 100cc bike
Petrolabout ₹100 a litreRounded; it moves. Current metro prices are published by the Petroleum Planning and Analysis Cell
Distance per order5 km2 km to the customer, 2 km back or on to the next, 1 km of repositioning
Other rider costs₹1,500 a monthInsurance, maintenance, phone data, bag
Failed deliveries1 in 20Customer not home, wrong address, order cancelled at the door

What one order takes in time

StepTime
Wait at the counter for the bag6 minutes
Ride 2 km in city traffic at about 15 km/h8 minutes
Hand over, collect payment if any, photograph proof3 minutes
Return or reposition6 minutes
Totalabout 23 minutes

Twenty-three minutes means a rider can do a little over two and a half orders an hour when orders are waiting for him. They are not always waiting. Across a nine-hour shift with a lunch break and quiet stretches, a realistic average is somewhere between twelve and twenty completed orders a day for a busy area, and far fewer for a single shop on its own.

The cost per order

Fuel is easy: 5 km at 45 km per litre is about 0.11 litres, so about ₹11 an order. Other rider costs at ₹1,500 a month over roughly 340 orders are about ₹4 an order. Those two lines barely move. The line that moves is the wage.

Orders a dayWage per orderFuel and otherFailed-delivery allowanceCost per order
6₹141₹15₹8about ₹164
13₹65₹15₹4about ₹84
20₹42₹15₹3about ₹60

The wage line is the monthly wage divided by working days divided by orders. At six orders a day the rider costs ₹164 a trip. At twenty he costs ₹60. Same rider, same bike, same city. The only thing that changed is how many bags he carried.

Fuel is the smallest line on the sheet. The expensive thing is a rider standing still.

Where the waste hides

Look back at the 23 minutes. Only 8 of them are riding. The other 15 are waiting, handing over and returning. Cut the counter wait from 6 minutes to 2, because the bag was packed before the rider arrived, and the order takes 19 minutes. That alone is one more order an hour. The failed delivery is worse: it costs the full trip and then the trip again. One in twenty does not sound like much until you see it is ₹8 on every order, more than fuel and maintenance together at twenty a day.

This is why the operational gaps I listed in Why chemists lose customers to quick commerce are not just customer problems. No confirmation step means more cancellations at the door. No order queue means the rider waits while the pharmacist finishes a walk-in. Every gap in the shop is a line on the rider's sheet.

Density beats distance

The instinct is to think delivery cost is about how far the customer lives. It is not. Two kilometres or three makes a difference of a rupee or two of petrol and a few minutes. Six orders a day or twenty makes a difference of a hundred rupees an order. What matters is how many customers within a short ride want medicine in the same hours.

The neighbourhood pharmacy already has that. Its customers live within a couple of kilometres; that is why they are its customers. What it lacks is enough orders in a day to keep one rider moving, and that is exactly what pooling across shops gives. The restaurant on the corner never ran its own fleet. It shared one. The chemist can do the same, as I argued in Online without an app.

What this means for the shop and the platform

For the shop: your delivery boy is not free. If he does five trips a day on a ₹15,000 salary, each trip costs you more than ₹115 before fuel, and the time he spends away from the counter costs you walk-in sales too. The honest comparison is not "free versus a delivery fee". It is ₹115 a trip versus whatever the shared rider costs.

For MedMate: the whole model lives or dies on orders per rider-hour in a small area. Not on marketing, not on discounts. On enough pharmacies and enough customers within two kilometres of each other that a rider finishes one bag and the next is already packed. That is why we build one neighbourhood at a time, and why the numbers above are the ones I look at before any other.

The figures here are assumptions, chosen to be in a sensible range for Bengaluru in 2026. Replace them with your own. The shape of the answer will not change: the cost of delivering medicine in minutes is the cost of a rider standing still.

Questions this essay answers

How much does it cost to deliver medicine to a customer's home in India?

It depends almost entirely on how many orders a rider completes in a day. In the worked example in this essay, with a full-time wage, a two-wheeler and Bengaluru traffic, the cost lands between about ₹60 and ₹160 per order. The figures are illustrative; the method is the point.

Why is fuel not the main cost of delivery?

A 100cc two-wheeler at roughly 45 kilometres a litre spends about ₹2 of petrol per kilometre. A five-kilometre round trip is about ₹11. The rider's time, especially time spent waiting at the counter or on a failed delivery, costs several times that.

What is the cheapest way for a pharmacy to offer home delivery?

Share the rider. One shop rarely has enough orders to keep a rider busy, which is why its own delivery boy is expensive per trip even when his salary looks small. A platform that pools orders from many nearby shops keeps the rider moving, and the cost per order falls with every extra order in the same area.