Amazon has announced a $2.1 billion investment in its Delivery Service Partner program to increase financial outcomes for independent delivery firms and their drivers. This brings the total investment in the program to $12.3 billion over six years, with $660 million going towards rate card increases to boost wages for drivers to nearly $22/hour nationally, a 7% increase. The news was released at Amazon’s annual conference for DSP companies as drivers in some areas seek to unionize, raising questions about Amazon’s role as a “joint employer” of the drivers.
Amazon has faced criticism for its heavy use of machine learning algorithms to determine delivery routes, which has overwhelmed some drivers and led to the closure of rural delivery companies. However, the company stated that it has been working on improving its routing systems to enhance safety and simplify the driver experience, including making adjustments for extreme weather and other risks. Currently, there are 4,400 Amazon Delivery Service Partners firms representing 390,000 driving jobs worldwide, up from 3,500 firms and 279,000 jobs a year ago.
A bipartisan group of U.S. senators has raised concerns about Amazon’s treatment of DSP drivers and efforts to avoid legal liability for their mistreatment. In response to these concerns, Amazon announced that DSP companies will be able to offer new benefits to their drivers, such as a service that allows them to access up to 50% of their accrued wages before payday. This move is seen as an effort to address some of the criticisms surrounding the treatment of DSP drivers and improve their overall working conditions.
The increased investment in the DSP program is part of Amazon’s broader efforts to enhance its delivery capabilities and build a more reliable and efficient delivery network. By boosting wages for drivers and offering new benefits, Amazon aims to strengthen its relationships with DSP companies and drivers, while also addressing concerns about their treatment and working conditions. The company’s use of machine learning algorithms for routing has been a contentious issue, but Amazon stated that it is making improvements to ensure the safety and well-being of drivers while simplifying their day-to-day experience.
Overall, Amazon’s announcement of a $2.1 billion investment in the DSP program reflects the company’s commitment to improving the financial outcomes and working conditions for independent delivery firms and their drivers. With a focus on boosting wages, offering new benefits, and making improvements to its routing systems, Amazon is working towards building a more sustainable and efficient delivery network. Despite facing criticism from lawmakers and concerns about mistreatment, Amazon is taking steps to address these issues and strengthen its delivery service partner program for the future.
