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8mo ago

Amazon Increases Pay for Subcontracted Delivery Drivers Amid $2.1 Billion Investment

The pay raise comes as Amazon faces increased union pressure and scrutiny from U.S. labor regulators.

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The distinctive rear blue cargo door and wrapping tail light on the Amazon delivery vans. (GeekWire Photo / Kurt Schlosser)
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Overview

  • Amazon's subcontracted delivery drivers will now earn an average of nearly $22 per hour, up from $20.50.
  • The wage increase is part of a new $2.1 billion investment in Amazon's Delivery Service Partner (DSP) program.
  • Since 2018, Amazon has invested a total of $12.3 billion in the DSP program, creating 390,000 driving jobs.
  • U.S. labor regulators are scrutinizing Amazon's business model, with some arguing the company should be classified as a joint employer of subcontracted drivers.
  • New technological tools and safety programs are being introduced to improve driver experience and safety outcomes.