Amazon has announced an incremental investment of over $2.1 billion in its Delivery Service Partner (DSP) program, focusing on safety, training, and support for entrepreneurs. This brings total investments in the program to $12.3 billion over the past six years.
According to Amazon, the company plans to invest an additional $660 million over the next year in DSP rate card increases and bonuses, which will assist in raising driver pay to a national average of nearly $22.00 per hour. This year's investment is significantly larger than previous years.
In addition to rate increases, Amazon is introducing a value-added service through PayActiv, allowing drivers to access up to 50% of their accrued wages before payday. The service will also provide cash rewards, discounts on various products, bill payment options, and a savings tool, all integrated into a single app to enhance the overall experience for drivers.
To improve safety and efficiency, Amazon employs advanced technology and machine learning models to optimize route planning and identify potential safety risks. By the end of the year, the company aims to identify risk characteristics for 200 million roads and provide 18 million safety alerts within the delivery app. Additionally, according to Amazon, the "Together, We Give" program has enabled over 800 DSPs to donate to local causes, demonstrating their engagement with the communities they serve.
The DSP program enables individuals to start and manage their own delivery businesses. Participants are expected to take a hands-on approach to operations, focusing on hiring and leading delivery teams while prior logistics experience is not necessary. According to Amazon, the program offers low startup costs with initial investments starting around $10,000 and provides access to tools and mentorship from Amazon. DSPs benefit from a partnership that emphasizes ongoing support and coaching to enhance safety and efficiency in their operations.