Amazon investing $1.9 billion in contract delivery support effort
Amazon is making a major financial commitment to its Delivery Service Partner program, which provides support to its employees who leave their jobs to build their own contract delivery businesses.
The online giant said it will invest an additional $1.9 billion in the program bringing its total investment during the last seven years to $16.7 billion. Since its first rollout in 2018, Amazon says the DSP program has grown to include 4,500 small business owners. The new investment will help participants increase driver pay to a national average of nearly $23 per hour, depending on DSP and their location.
Many DSPs are already paying above that rate, according to Amazon. Other benefits Amazon offers DSP participants include offering a 401(k) program to U.S.-based DSPs and supporting them in matching contributions for drivers.
In addition, an academic program called Next Mile, provides drivers employed by participating DSPs with up to $5,250 per year to participate in more than 1,700 academic programs, including bachelor's and associate degrees, skill certifications, and high school completion courses.
The Next Mile program is offered by InStride and was inspired by Amazon's Career Choice program, which offers college tuition prepaid to more than 750,000 hourly Amazon employees. Next Mile provides participating DSPs and their drivers access to technical training and upskilling opportunities.
[Read more: Amazon adds academic and career coaching to employee benefits]
AI driver safety enhancements
Amazon has also developed several artificial intelligence-based solutions to help promote DSP driver safety. The company says it has developed smarter routing technology that analyzes traffic patterns and road conditions to design safer routes.
The retailer is also utilizing multi-modal AI (AI technology that can collectively analyze multiple data formats) to combine satellite imagery, delivery success signals, and public information sources to improve navigation. When drivers encounter mapping issues, they can report them and Amazon’s AI systems automatically process the feedback to fix problems as quickly as possible.
During the past year, Amazon says it has seen a 31% reduction in serious collisions and a 32% decrease in negative driver behaviors like speeding and distracted driving.
“As we look to the future of the DSP program, I'm excited about the continued growth and innovation that lies ahead," said Beryl Tomay, VP, transportation at Amazon, in a corporate blog post. "To every entrepreneur in the program and every driver who delivers day in and day out with such dedication — thank you."
