Amazon Invests Millions to Boost Pay For Contract Delivery Drivers




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Amazon is investing $440 million to raise minimum pay rates for its team of delivery drivers contracted to bring packages to your home.

Amazon disclosed the increase on Tuesday at Ignite Live, an annual conference for the company’s Delivery Service Partner program. The investment could affect the pay for 279,000 third-party drivers. The retail giant declined to say how much of a raise this represents but noted that delivery associates will, on average, earn $20.50 an hour or more.

“This is going directly to DSPs so that they can offer competitive pay to their employees and build and retain great teams,” said Beryl Tomay, Amazon’s vice president of last mile delivery and technology, according to CNBC.

The DSP is a collective of 3,500 small businesses that offer “last mile” delivery to bring packages to doorsteps worldwide. The program began in 2018 as a way for Amazon to move away from the U.S. Postal Service and FedEx as the primary delivery method. The program has generated over $45 billion in revenue since launching, Tomay said.

Each DSP sets its own wages, but Amazon decides the minimum requirements and routinely audits employees’ pay based on location. DSP delivery drivers can expect to see pay increases in mid-October.

The retail giant will also provide an additional $400 million for drivers seeking education or childcare.

Amazon also said it will be investing in Next Mile education programs provided by InStride. Eligible DPS employees can receive up to $5,250 annually for tuition or reimbursement for accredited institutions. More than 2,000 academic programs are offered. Thousands of DPS employees have already enrolled to complete associate’s and bachelor’s degrees this year. Amazon said it will expand the program to Canada in 2024.

DPS employees will also have access to Upwards, a daycare support service. Employees can work with a 24/7 “concierge” representative who will help find childcare to fit their needs.

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