Amazon said it is investing over $840 million in Delivery Service Partner rates and new programs for delivery drivers.
The company said they are investing over $440 million in rate increases over the next year, to help third parties to provide even greater wages and benefits to drivers. A move that comes as Amazon faces pressure to unionize their delivery driver workforce.
With the latest announcement, Amazon’s investment in Delivery Service Partners will total more than $8 billion since the Amazon Delivery Service Partner (DSP) program was launched in 2018.The program provides entrepreneurs access to tools, resources, and Amazon’s experience in logistics to enable them to launch and build successful delivery companies.
The company said that since the start of the program they have helped 3,500 hands-on entrepreneurs to build and scale their businesses, which created 279,000 driving jobs, generated $45 billion in revenue, and are now delivering over 20 million packages every day across 19 countries.
Following the announcement, Amazon said their focus will remain on small business owners who build successful companies.
“While individual wages and benefits will vary by DSP and geography, we anticipate that Delivery Associates (DA) in the U.S. will earn $20.50 per hour on average or more, plus health care and other benefits DSPs offer. Many DSPs are already paying well above that, and our increased DSP rates will continue to support them in their efforts to recruit and retain high-performing teams,” the company said in a statement.
The announced pay increase will begin in mid-October. The DSP program has helped Amazon to rely less on the traditional delivery channels helping the company generate more than $45 billion in revenue over the past five years, according to CNBC.
Amazon has invested about $8.9 billion in the program since it began.