Amazon is spending billions to improve its delivery services
Amazon has announced plans to invest $2.1 billion to enhance its Delivery Service Partner (DSP) program, which supports small businesses that provide deliveries.
A key part of the latest cash injection will be $660 million specifically allocated to increase compensation for DSP drivers. The change will increase the average wage by $1.50 per hour to nearly $22 per hour, which equates to a 7% annual wage increase.
The program now supports 4,400 small business owners, creating 390,000 jobs and $58 billion in revenue for participating companies.
Investing in the Amazon Delivery Service Partner Program
In addition to the pay increase, Amazon has also committed to improving the experience for those involved in its parcel delivery program by introducing an app that will allow DSP delivery workers to access up to half of their pay before payday.
The app also promises cash rewards, discounts on basic products like medicine and gasoline, bill payment options and savings tools.
Other improvements Amazon will make to the DSP experience include injecting artificial intelligence into the safety analysis of 200 million roads, aiming to provide 18 million safety signals for drivers by the end of the year as part of the company’s efforts to create the “safest delivery network in the world.”
Beryl Tomay, VP of Transportation at Amazon, said: “Virtually every part of our route planning system uses machine learning models to help us generate route suggestions that continuously improve different parts of a driver’s experience.” Last year, the company rolled out technology to help drivers stay cool in the summer months with smarter route planning.
Amazon hopes not only that the experience for drivers participating in the program will be improved, but also that the changes, which bring the company’s total DSP investment to $12.3 billion since 2018, will improve efficiency and attract new talent in time for the upcoming holiday season.
