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Amazon has announced a significant $2.1 billion investment to boost its Delivery Service Partner (DSP) program, which supports small businesses handling deliveries. A big part of this investment—$660 million—will go towards raising driver pay, bumping the average wage by $1.50 per hour, bringing it to nearly $22 per hour, a 7% increase from last year.
The DSP program has grown rapidly, now supporting 4,400 small business owners and creating 390,000 driving jobs. These businesses have collectively generated $58 billion in revenue since the program’s launch.
In addition to higher wages, Amazon is introducing new benefits for DSP drivers, such as an app that lets them access up to half of their wages before payday. The app will also offer cash rewards, discounts on essentials like prescriptions and gas, as well as bill payment and savings tools.
Amazon is also ramping up safety measures by incorporating artificial intelligence to analyze road conditions. By the end of the year, the company plans to provide 18 million safety tips to drivers through AI-powered insights, as part of their effort to build the “safest delivery network in the world.”
According to Beryl Tomay, Amazon’s VP for Transportation, machine learning is already a key part of their route planning, helping to improve drivers’ experience and efficiency. Last year, Amazon also introduced tech to help drivers stay cool in the summer by optimizing routes.
With these changes, Amazon hopes to not only improve working conditions for DSP drivers but also attract more talent ahead of the busy holiday season. This new investment brings Amazon’s total DSP program investment to $12.3 billion since 2018.