Amazon raises pay and enhances benefits for delivery drivers

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Amazon is boosting pay and expanding benefits for the e-commerce giant’s delivery drivers.

The company said Tuesday it will offer wage increases for drivers employed by its so-called delivery service partners (DSP), who ferry packages in the company’s vans. U.S.-based DSP drivers also will be eligible to participate in a 401(k) plan, with Amazon pledging to chip in $60 million in the first year to help business owners match employee contributions. 

Starting in January 2023, a new program will offer Amazon DSP drivers up to $5,250 per year in educational benefits, including for college classes, high school completion courses and skill certifications. Amazon will reimburse delivery partners for tuition expenses. 

Amazon said it will invest a total of $450 million to sweeten compensation and provide more benefits for delivery drivers. 

The initiative comes as the nation’s unemployment rate remains low, and as shipping, trucking and other transportation industry players compete for workers. Amazon works with more than 3,500 delivery partners around the world, employing more than 275,000 drivers, according to the company.

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