Amazon invests $450 million to increase wages and benefits for contracted delivery drivers

Amazon (AMZN) plans to raise wages and other contracted driver benefits through a $450 million investment this year in its Delivery Service Partner (DSP) program, the company announced Wednesday.


  • Amazon plans to increase driver wages and other benefits with a $450 million investment in its DSP program.
  • Delivery workers are expected to earn an average of $20.50 or over the hour from the middle of the year. October.
  • Since the DSP program launched in 2018, it has generated more than $45 billion in revenue for Amazon.

Amazon said pay increases would begin in mid-October and delivery workers would earn an average of $20.50 an hour or more, plus benefits, once the changes are implemented. Amazon also said it would offer a 401(k) plan. and that DSPs will receive approximately $60 million in the first year to help small businesses match employee contributions.

Launched in 2018, the program Amazon's DSP allows businesses to start with an investment of as little as $10,000 to own a network of up to 40 vans. The program has expanded to 3,500 small businesses which together have 279,000 drivers.

The success of the program would have helped reduce the Amazon's reliance on other carriers, such as FedEx and the U.S. Postal Service, while increasing the speed of deliveries. Amazon invested approximately $8.9 billion in the program, which generated more than $45 billion in revenue.

Amazon shares rose 1% in early trading Wednesday at 9:45 a.m. PT 39;East, and have increased by almost 70% since the start of the year.

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