Blending of gelatin to alginate promote cell–material interaction. However, the changes in diffusive and mechanical properties need to be ascertained. This study shows that the presence of two superposed polymer networks, where gelatin is not additionally crosslinked resulted in higher uptake and slower release of vitamin B12. In the presence of gelatin, the stress is found higher for the same level of compressive deformation, and the permeability of the pore fluid during expulsion under compressive stress is found significantly lower. Also, a large residual strain at the end of each cycle in case of cyclic compression is observed, when gelatin is present. A microfluidic device is used to introduce voids uniformly across the blended gel with an objective to increase compressibility, permeability (for faster equilibration of pore pressure), and uptake of bioactive species. The results showing lower permeability and higher uptake in the presence of gelatin are discussed.