Amazon Is Raising Pay and Adding Benefits for Some Delivery

  • Amazon announced it is boosting pay and adding benefits for some delivery workers. 
  • The program will add a 401(k) plan and educational programs for participants in Amazon’s Delivery Service Partner program. 
  • Amazon Flex workers protested earlier this year for higher pay, but they are not affected by this announcement.

Amazon is trying to keep delivery workers satisfied on the job.

The e-commerce giant announced Tuesday that it is boosting pay and adding benefits for some delivery drivers after workers protested earlier this year amid rising gas prices.

Amazon said it would invest $450 million into rate increases, an education program, and a 401(k) program for US-based Delivery Service Partners. 

“Through the DSP program, small businesses around the world have generated over $26 billion in revenue for their companies since launching four years ago. We couldn’t have done that without DSPs and their incredible teams. We will continue to innovate with them and use our economies of scale and resources to help them provide best-in-class offerings to their employees,” said Amazon VP Parisa Sadrzadeh in a statement announcing the investment.

Amazon has come under scrutiny for its treatment of its delivery workers in the past. Last year, the company apologized for denying that some of its drivers pee in bottles due to the strict time constraints of the job. 

The company also settled with the Federal Trade Commission last year and agreed to pay drivers $60 million in tips that were allegedly illegally withheld by the company

In March, delivery drivers who are part of Amazon’s Flex delivery program staged a protest in Los Angeles, demanding higher pay to accommodate surging gas prices. 

However, this wage increase affects Amazon’s Delivery Service Partner program, which is separate from Amazon’s Flex program. 

DSPs are independent businesses that hire and manage drivers on behalf of Amazon. Those drivers are employees of the individual DSPs. Flex workers are independent contractors who work on behalf of Amazon, similar to an Uber driver or Doordash delivery person.

Amazon covers fuel costs for Delivery Service Partners, but it does not cover all fuel costs for Flex delivery partners.