Amazon to invest $1.9B in delivery contractor pay, safety in 2027
Amazon continues making financial commitments to its Delivery Service Partner (DSP) program, which provides support to employees who leave their jobs to build their own contract delivery businesses.
At its recent 2026 Ignite Live DSP conference in Las Vegas, Amazon announced it is investing another $1.9 billion in the DSP program in 2027, which is intended to help DSPs increase the pay of their workers to a national average of nearly $24 per hour.
Since its first rollout in 2018, Amazon says the DSP program has grown to include 4,500 small business owners. Including the upcoming financial commitment and a $1.9 billion investment Amazon made in the DSP program in September 2025, its total investment will reach $18.6 billion.
[READ MORE: Amazon investing $1.9 billion in contract delivery support effort]
Specifics will vary by DSP and geography, with each DSP determining how best to use Amazon’s investment in their business. All DSPs provide healthcare coverage and paid time off for their full-time employees, and Amazon says many also offer 401(k) plans, tuition reimbursement and other benefits.
Amazon is also committing $70 million over the next five years toward community impact initiatives led by DSP owners. This includes support for a program called Amazon Local Good which helps nonprofits get donated goods to people who need them, at no cost to the nonprofit, via Amazon’s last-mile delivery network.
In 2025 alone, Amazon says DSPs partnering with Amazon Local Good completed 4,800 routes, distributing more than 8 million essential items and 4 million meals. With this latest investment, the retailer expects to transport and deliver over 150 million essential items, including meals, over the next five years.
Amazon focuses on DSP safety
According to Amazon, previous safety investments are delivering results, with serious crashes down more than 23%. Since 2022, the company says it has invested more than $543 million in safety initiatives, programs and technology for DSP owners and their employees.
Currently, Amazon is rolling out new surround-view cameras that identify vehicles, cyclists, and pedestrians from all directions and notify delivery drivers. By the end of 2026, Amazon expects this technology will be installed in 50% of Rivian electric delivery vehicles across the DSP network.
The online retailer is also launching new dynamic hazard alerts in the Amazon delivery app, so drivers get real-time notifications about accidents, road closures, and construction ahead on their route. In addition, navigation will now automatically adjust routes during inclement weather or when hazards are detected, without the driver having to take any action.
In addition, Amazon is using advanced artificial intelligence techniques to identify driving trends that are more likely to lead to accidents and surfacing these insights to DSPs so that owners can provide early coaching for their teams. The company is also investing in AI-based routing technology that dynamically adjusts for real-world conditions, accounting for considerations such as reduced visibility after sunset, or the extra time a downtown delivery might need to find parking during busy lunch hours.
Other AI-related efforts for DSPs include upgrades to wearable smart glasses technology, designed to serve as a driver’s companion throughout the delivery process, which Amazon first announced it was developing in October 2025. The glasses use computer vision to display real-time navigation suggestions and delivery details directly in a driver's line of sight, creating a hands-free experience.
In addition to adding new features, such as an LED headlamp, hands-free scanning, and proactive address verification, Amazon will continue to scale out the deployment and expects to have more than 20,000 devices in the field by the end of 2027.
