Amazon Invests $1.9 Billion In Delivery Service Partner Program
Amazon.com Inc is investing another $1.9 billion in its Delivery Service Partner Program, including $70 million over the next five years for community impact initiatives and to help Delivery Service Partners increase driver pay to a national average of nearly $24/hour. The company is also launching new safety initiatives and AI-powered technology.
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9 billion in the Delivery Service Partner (DSP) program in 2027, as it looks to help DSPs lift Delivery Associate pay to a national average of nearly $24/hour. 7 billion to support DSPs and their Delivery Associates and drivers over the eight-year program history. Amazon said serious crashes are down more than 23%, citing its safety investments and DSP leadership. It said AI-powered tools including Wellspring and Amazon’s Smart Delivery Glasses are helping make deliveries faster and more accurate.
Amazon also said it is committing $70 million over the next five years to community impact initiatives led by DSP owners. At Ignite Live, the company said it is continuing to invest in DSP owners and their teams. It said that since 2022, it has invested more than $543 million in safety initiatives, programs and technology for DSP owners and their teams. The company said those investments, together with safety leadership from DSP owners, have produced results, with serious vehicle crashes falling more than 23% across its network last year.
It added that it is rolling out new surround-view cameras aimed at giving DAs more visibility on the road. The cameras are designed to identify vehicles, cyclists and pedestrians from all directions and notify DAs. By the end of this year, the technology will be installed. Amazon said it is using Rivian electric delivery vehicles across 50% of the network.
It is also rolling out additional dynamic hazard alerts in the Amazon Delivery App to give delivery associates real-time notifications about accidents, road closures and construction ahead on their route. The navigation system will now automatically adjust routes in inclement weather or when hazards are detected, without any action required from the delivery associate. Amazon said Netradyne in-vehicle safety cameras give DSP owners real-time safety technology to help protect their delivery associates on the road.
Amazon said it is using more advanced AI techniques to identify driving trends that are more likely to lead to accidents and surface those insights to DSPs so owners can provide early coaching for their teams. It said these efforts, along with DSP owners’ safety-first leadership, are driving continued safety gains across its network. 9 billion in the DSP program this year, including support for DSP owners' ability to attract and retain talent. It expects that over the past three years these investments will have helped DSP owners increase driver pay by an average of 16%.
Nationwide, the national average earnings have risen by about another $1 to nearly $24 per hour. The higher rates paid to DSPs are intended to help them recruit and keep high-performing teams, which Amazon says is essential to building sustainable delivery businesses. The specifics will differ by DSP and geography, as each DSP decides how best to invest in its business and teams. All DSPs offer healthcare coverage and paid time off for full-time DAs, and many also provide 401(k) plans, tuition reimbursement and other benefits.
Amazon said these are decisions DSP owners make as employers, and its investments are designed to support those efforts. Amazon said it continues to use hardware and AI-backed software systems to help DSP owners run stronger operations and improve the daily delivery experience for DAs. Its generative AI mapping technology, called Wellspring, becomes smarter with every delivery and learns from each trip to a location to build a more accurate model of the physical world over time. 8 million buildings.
The technology has cataloged 85,000 mailrooms and lockers, and is intended to help DSP owners’ DAs deliver to customers more efficiently and accurately. Amazon said it is also investing in AI-based routing technology that adjusts dynamically for real-world conditions, including reduced visibility after sunset and the extra time a downtown delivery may need to find parking during busy lunch hours. Amazon introduced Amazon Smart Delivery Glasses last year, AI-powered wearable technology developed with input from hundreds of DAs.
The glasses use computer vision to show real-time navigation suggestions and delivery details directly in a DA's line of sight, creating a hands-free experience that helps them stay focused on their surroundings rather than looking down at a phone. The company said it plans to keep adding features including an LED headlamp, hands-free scanning and proactive address verification, and expects to have more than 20,000 devices in the field by the end of 2027. supporting lo