Amazon has announced plans to invest $2.1 billion in a bid to enhance its Delivery Service Partner (DSP) program, which supports small businesses that handle deliveries.
A key component to the latest cash injection will be $660 million allocated specifically to increase compensation for DSP drivers. The change will see the average wage rise by $1.50 per hour to nearly $22 per hour, equating to a 7% year-over-year payrise.
The scheme now supports 4,400 small business owners, creating 390,000 driving jobs and $58 billion in revenue for participating companies along the way.
Amazon Delivery Service Partner program investment
Alongside the pay increase, Amazon has also committed to improving the experience for those associated with the package delivery scheme by introducing an app that allows DSP drivers to access up to half of their wages before payday.
The app also promises cash rewards, discounts on essentials like prescriptions and gas, bill payment options and savings tools.
Other improvements that Amazon will make to the DSP experience include injecting artificial intelligence into its safety analysis of 200 million roads in order to provide 18 million safety cues for drivers by the end of the year as part of the company’s effort to create the “safest delivery network in the world.”
Beryl Tomay, VP for Transportation at Amazon, said: “Virtually every part of our route planning system employs machine learning models to help us generate route suggestions that continually improve the different parts of a driver’s experience.” Last year, the company rolled out technology to help drivers keep cool in the summer months with smarter route planning.
Besides improving the experience for drivers participating in the program, Amazon also hopes that the changes, which bring the total company DSP investment to $12.3 billion since 2018, will improve efficiency and attract new talent in time for the upcoming Christmas season.
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