US e-commerce giant Amazon has announced an additional investment of $2.1bn into its Delivery Service Partner (DSP) programme.
The latest investment brings the total investment in the programme to $12.3bn since 2018.
The investment aims to enhance safety programmes, provide comprehensive training, offer value-added services and increase incentives to support the growth of these entrepreneurial businesses and their teams.
In 2024/25, Amazon will allocate an additional $660m for rate card increases and bonuses to enable DSPs to offer higher wages and benefits to drivers.
With this investment, driver pay is expected to reach a national average of $22.00 per hour, depending on location, a 7% increase from the previous year.
Amazon is also introducing a new partnership with PayActiv, a financial service that will allow drivers to access up to 50% of their earned wages before payday.
The service will offer cash rewards, exclusive discounts on products and services, bill payment options and a savings tool, all accessible through a single app.
Amazon Transportation vice-president Beryl Tomay said: “I’m truly in awe of the incredible accomplishments of our DSP partners and their drivers, who go the extra mile to deliver smiles to Amazon customers.
“Their success is a testament to the transformative impact that can be achieved when individuals are given opportunities and support. To all the DSPs in our network, and your incredible teams, thank you for all you do for Amazon customers and our communities.”
Launched in 2018, the DSP programme is designed to empower small business entrepreneurs to establish and expand successful delivery companies.
In a separate development, an investigation by the Competition Commission of India (CCI) has reportedly found that Amazon and Walmart-owned Flipkart have breached local competition laws by favouring certain sellers on their e-commerce platforms.
The CCI's report suggests that the companies have created an ecosystem that prioritises preferred sellers in search results, potentially disadvantaging other merchants, Reuters has reported.
