Amazon raises wages and adds benefits to some delivery drivers

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  • Amazon announced it was raising wages and adding benefits for some delivery workers.
  • The program will add a 401(k) plan and educational programs for participants in the Amazon Delivery Service Partner program.
  • Amazon Flex workers protested earlier this year for higher pay, but they are unaffected by the announcement.

Amazon tries to keep delivery people happy on the job.

The e-commerce giant announced on Tuesday it was raising wages and adding benefits to some delivery drivers after workers protested earlier this year over rising gas prices.

Amazon said it would invest $450 million in rate increases, an education program and a 401(k) program for U.S.-based delivery service partners.

“Through the DSP program, small businesses around the world have generated more than $26 billion in revenue for their businesses since its launch four years ago. We couldn’t have done this without DSPs and their amazing teams. We will continue to innovate with them and use our economies of scale and resources to help them provide the best deals to their employees,” said Parisa Sadrzadeh, vice president of Amazon, in a statement announcing the investment.

Amazon has come under scrutiny for its treatment of its delivery people in the past. The company last year apologized for denying that some of its drivers urinate in bottles due to strict work time constraints.

The company also reached a settlement with the Federal Trade Commission last year and agreed to pay drivers $60 million in tips allegedly illegally withheld by the company.

In March, delivery drivers who are part of Amazon’s Flex delivery program staged a protest in Los Angeles, demanding higher pay to cope with soaring gas prices.

However, this salary increase affects Amazon’s Delivery Service Partner program, which is separate from Amazon’s Flex program.

DSPs are independent companies that hire and manage drivers on behalf of Amazon. These drivers are employees of the individual DSPs. Flexworkers are independent contractors who work on behalf of Amazon, such as an Uber driver or a Doordash delivery person.

Amazon covers fuel costs for Delivery Service Partners, but it does not cover all fuel costs for Flex Delivery Partners.

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