Amazon is investing nearly $840 million in Delivery Service Partner rates and new programs for delivery drivers
We launched the Amazon Delivery Service Partner (DSP) program in 2018 to provide entrepreneurs access to tools, resources, and Amazon’s experience in logistics to enable them to launch and build successful delivery companies. Over the past five years, we have empowered 3,500 hands-on entrepreneurs to build and scale their businesses, which have in turn created 279,000 driving jobs, generated $45 billion in revenue, and are now delivering over 20 million packages every day across 19 countries.
This year, at our annual conference for DSPs, Ignite Live, we announced an incremental investment of over $840 million in the program. Our focus has always been to help these small business owners build successful companies and great teams and we’re excited to see the impact that these investments will have in furthering that goal. Here are some more details about the investments that I am most excited about:
Helping DSPs build thriving teams
Rate Increases
We are investing over $440 million in rate increases over the next year, to help DSPs provide even greater wages and benefits to drivers. While individual wages and benefits will vary by DSP and geography, we anticipate that Delivery Associates (DA) in the U.S. will earn $20.50 per hour on average or more, plus healthcare and other benefits DSPs offer. 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.
Education opportunities
I am also thrilled to announce the expansion of the Next Mile education program, provided by InStride, which offers eligible DSP employees access to over 2,000 academic programs and up to $5,250 in tuition coverage per year. In addition to the in-network coursework that DSP employees have free access to, they can now be reimbursed for coursework completed at any accredited institution outside the network. Thousands of drivers and DSP employees have enrolled in an academic program since Next Mile launched in 2023, including bachelor’s and associate degrees, skill certifications, and high school completion courses. The program will also be available in Canada in 2024.
Family support
Finally, we are announcing a new value-added service for DSPs to further invest in their employees and help them care for their families – a new child care support service from Upwards. Finding childcare is hard, but with this new service, DSP employees will have a 24/7 concierge service to assist in finding childcare that fits their needs. The concierge service also provides information for emergency childcare. Through the service, DSP employees can work with a Care Manager to find a caregiver, post a care opportunity (e.g. babysitting job), or search and reach out to a caregiver directly. We’ve heard from DSPs that this service will be helpful for their employees and we’re glad to help make it available
Giving back to the community through “Together, We Give”
Amazon and DSPs care deeply about the neighborhoods and communities we serve so it’s important that we invest to drive further impact to the cities and towns we operate. I am proud to launch the “Together, We Give” program to give DSPs in the U.S. and Canada access to grants up to $5,000 to support charitable donations to nonprofits in their local community. Whether it’s donating to disaster relief efforts, local hospitals, or school districts, we’re happy to help play a role in improving communities. Across the network, “Together, We Give” represents a combined $3 million investment in communities where DSPs operate.
Thank you to the incredible DSP community—the ongoing partnership and the contributions they and their drivers make help us better serve Amazon customers, and we appreciate it. Learn more about Amazon’s Delivery Service Partner program.
