Amazon.com Inc.
09/12/2024 | News release | Distributed by Public on 09/12/2024 11:44
Amazon is investing an additional $2.1 billion in the Delivery Service Partner program, in its biggest investment yet
Amazon's investment in the Delivery Service Partner program, including rate card increases, totals $12.3 billion over the last six years.
I'm always humbled by the incredible teams across Amazon's Delivery Service Partner (DSP) programmaking magic for customers. This program started in 2018 to empower small business entrepreneurs to grow thriving delivery companies. Since then, I've loved watching over 4,400 passionate owners build and scale their businesses, create 390,000 driving jobs, and generate $58 billion in total revenue for their companies. These leaders have grown teams of drivers who show up every day for Amazon customers and their communities, and I'm equally appreciative of all they do (I remind Alexa to "thank my driver"at every possible opportunity). As we head into the holiday shopping months ahead, I'm deeply appreciative of the crucial role these entrepreneurs and their teams play in delivering millions of packages every day, helping ensure Amazon customers receive their orders safely and reliably.
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DSPs and their teams go to great lengths to take care of Amazon customers, and that's why we want to support DSPs with our biggest investment yet. Today, we're announcing an incremental investment of over $2.1 billion in the DSP program going toward safety programs, DSP rate cards, training, value-added services, incentives, and more so these entrepreneurs can continue to support their teams. Our investments in the program total $12.3 billion over the last six years.
We're honored to play a part in DSPs' journeys and remain committed to supporting them long term so they can continue to thrive and make a difference in their communities. Here are some more details about these investments and the other ways that Amazon supports DSPs.
DSP rate card increases and pay access services to help DSPs build and retain high-performing teams
To help DSPs provide greater wages and benefits to drivers, we'll invest an additional $660 million over the next year in DSP rate card increases and bonuses. We anticipate that our investment will help DSPs increase driver pay to a national average of nearly $22.00 per hour, depending on their location, which is a 7% increase over last year. Many DSPs are already paying well above that, and our increased DSP rates will continue to support them in their efforts to recruit and retain high-performing teams. This is an important investment year-over-year for DSPs-in fact, this year's investment in rate cards is 50% larger than last year's, and last year's investment was 35% higher than the year before.
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In addition to rate card investments, we're announcing a new value-added service from PayActivthat DSPs will be able to offer to their drivers. With PayActiv, drivers can easily access up to 50% of their accrued wages, so they no longer have to wait for pay day. The service will support cash rewards, exclusive discounts (on things like movie tickets, prescriptions, and gas), bill payments, and a savings tool, all in one convenient app.
AI and technology tools developed by Amazon to help improve the driver experience
Safety remains our top priorityand we want our legacy to be that we have the safest delivery network in the world. As part of that, we're always working on new ways to help DSPs make their drivers' day-to-day experience safer and simpler. Virtually every part of our route planning system employs machine learning models to help us generate route suggestions that continually improve the different parts of a driver's experience. For example, we've used environmental factors like weather, along with models predicting walk distance, to produce routes that are easier for drivers who are delivering during the hot summer months. Last year, this allowed us to adjust routes, so DSPs could give their drivers additional breaks to hydrate, rest, and cool down.
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We're also using predictive models that identify potential safety risks on the road and technology to alert drivers to important safety cues within the delivery app, such as unpaved roads or railroad crossings. And we've trained our machine learning systems based on public safety datasets to help us construct safer routes. By end of this year, we expect to identify risk characteristics for 200 million roads and provide 18 million safety cues for drivers. These efforts, alongside other technological improvements, improve both driver experience and safety outcomes.
A positive ripple effect
DSPs and their drivers are integral parts of the communities they serve, which is why we announced the "Together, We Give" programlast year to provide DSPs in the U.S. and Canada access to giving programs and increase their impact locally. Over 800 DSPs have already taken advantage of this program, collectively donating over $560,000 to worthwhile causes along with school supplies to over 49,000 students across the U.S. and Canada.
I'm truly in awe of the incredible accomplishments of our DSP partners and their drivers, who go the extra mile to deliver smiles to Amazon customers. Their success is a testament to the transformative impact that can be achieved when individuals are given opportunities and support. To all the DSPs in our network, and your incredible teams, thank you for all you do for Amazon customers and our communities.