Amazon has announced plans to invest $2.1 billion in a bid to improve its Delivery Service Partner (DSP) program, which supports small businesses that manage deliveries.
A key component of the latest cash injection will be the $660 million earmarked specifically to increase compensation for DSP drivers. The change will see the average wage rise by $1.50 per hour to nearly $22 per hour, equivalent to a 7% year-over-year wage increase.
The scheme now supports 4,400 small business owners, creating 390,000 driving jobs and $58 billion in revenue for participating companies.
Investment in the Amazon Delivery Service Partner Program
In addition to the pay increase, Amazon has also pledged to improve the experience of those associated with the package delivery program by introducing an app that allows DSP drivers to access up to half of their wages before payday.
The app also promises cash rewards, discounts on essentials like prescription drugs and gas, bill payment options and savings tools.
Other improvements Amazon will make to the DSP experience include injecting artificial intelligence into its safety analysis of 200 million roads to provide 18 million safety signals for drivers by the end of the year as part of the company’s effort to create the “world’s safest delivery network.”
Beryl Tomay, Amazon’s vice president of transportation, said: “Virtually every part of our route planning system employs machine learning models to help us generate route suggestions that continually improve different parts of the driver experience.” Last year, the company rolled out technology to help drivers stay cool in the summer months with smarter route planning.
In addition to improving the experience for drivers participating in the program, Amazon also hopes the changes, which bring the company’s total investment in DSPs to $12.3 billion since 2018, will improve efficiency and attract new talent in time for the upcoming holiday season.
