Amazon is jog out young benefit and higher pay for some of its driver , the fellowship announced in a Tuesday afternoonpress sacking . Specifically , it is putting more funding towards its “ Delivery Service Partners ” , which areindependent businessesthat manage a fleet of vehicle and driver under the Amazon streamer in a franchise exemplar .
The DSP political program has sire more than $ 26 billion in gross for Amazon over the past four year , the company write . “ empower in our DSPs mean that we are continue to invest in communities nationally , ” said Parisa Sadrzadeh , a company executive , in the financial statement .
In total , the company said it is putting an extra $ 450 million towards the DSP platform . fresh funded benefit are arrange to admit an educational stipend for drivers in “ participating DSPs ” of up to $ 5,250 . There ’s also now a 401(k ) plan choice for U.S.-based DSP worker , which includes some Amazon support for employer match contributions in the first year . The company also told Gizmodo it ’s dedicating about $ 325 million towards direct pay rate increases for number one wood , in an email .
Some, but not all, Amazon delivery drivers will now have access to retirement and education benefits.Photo:Cineberg(Shutterstock)
However , the company did n’t qualify whom the rate gain apply to or how that money will be circularise . There are more than 3,500 DSPs globally in about 15 counties , employ 275,000 drivers , according to Amazon . So , it ’s in all likelihood safe to assume that any top - down rate increase wo n’t be identical from franchise to franchise . An Amazon voice tell Gizmodo the “ rate are learn by the DSPs . ”
The welfare encouragement leaves outAmazon Flexdrivers , the worker whom the company concentrate to use their own personal vehicles , mostly to fill in the gap of last mile deliveries . In March , Flex diversprotested for higher payin Los Angeles , amid recordfuel price . In reply to questions about pay step-up for Flex workers , the company spokesperson say Gizmodo only that , “ the annunciation from yesterday is not tied to the Amazon Flex delivery partners . ”
Unlike Uber , Lyft , DoorDash , and Walmart which all also bank on contractors ’ willingness to drive and maintain their own cars , Amazon did n’t carry out fuel surcharges or high-pitched driver pay to offset the burden of expensive gas , according toa reportfrom CNBC .
antecedently , Amazon also had to paynearly $ 60 millionin colonization money in 2021 to Flex driver , after the Federal Trade Commission sued the ship’s company over withholding worker tips .
Update 2025-02-16 , 1:15 p.m. ET : This story has been update with extra information from Amazon .
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