Amazon boosts DSP programme with $1.9 billion investment
The latest investment is expected to push the national average driver pay to nearly $23 per hour.
On September 29, Amazon announced an additional investment of US$1.9 billion in its Delivery Service Partner (DSP) programme. With this latest infusion, the American e-commerce giant has committed a total of US$16.7 billion to the programme over the past seven years.
According to Beryl Tomay, Vice President of Transportation at Amazon, these funds have already made a tangible difference.
"The investments over the past two years have helped DSPs increase pay by an average of 13%. The latest investment is expected to push the national average driver pay to nearly $23 per hour," said Tomay.
Tomay further added, “Many DSPs are already paying above that, and our increased DSP rates will continue to support them in their efforts to recruit and retain high-performing teams, which is essential for building sustainable delivery businesses.”
Amazon's recent initiatives also extend beyond pay, with a focus on technology and safety. The company has developed smarter routing technology that analyzes traffic patterns and road conditions to create safer and more efficient delivery routes.
This system is enhanced by recent multi-modal AI, which combines satellite imagery, delivery success data, and public information to improve navigation accuracy.
"When drivers encounter mapping issues, they can report them, and our AI systems automatically process this feedback to fix problems quickly," Tomay explained.
These investments in safety and technology, combined with the efforts of DSPs, are already showing results. Over the past year, Amazon has seen a 31% reduction in serious collisions and a 32% decrease in risky behaviors such as speeding and distracted driving.
