💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Amazon to increase investment in its DSP program by $2.1 billion

Published 09/12/2024, 01:45 PM
Updated 09/12/2024, 06:16 PM
© Reuters. FILE PHOTO: A view shows the logo of Amazon at the Amazon Fulfillment Center during a media tour ahead of the holiday season in Tepotzotlan, Mexico, December 13, 2023. REUTERS/Gustavo Graf/File Photo/File Photo
AMZN
-

(Reuters) -Amazon.com said on Thursday it will increase the compensation to its Delivery Service Partners (DSP) through a $660 million investment over the next year.Amazon (NASDAQ:AMZN)'s package delivery is done mostly by DSPs, small businesses that employ drivers and set their salaries.

As a result of the investment, Amazon expects the national average earnings for drivers to increase by at least another $1.50 to nearly $22 per hour, depending on the location, which represents a 7% increase over last year.

The funding is part of an incremental investment of over $2.1 billion in the DSP program, bringing its total investment to $12.3 billion over the last six years.

Amazon will also launch an app for the DSP's drivers, where they will be able to access up to 50% of accrued wages before their payday.

The ecommerce giant said it will use AI to identify risk characteristics for 200 million roads and provide 18 million safety cues for drivers by the end of this year.

Amazon's investments come days after a National Labor Relations Board prosecutor concluded that the company should be held jointly liable with a contractor for allegedly using unlawful tactics to discourage delivery drivers in Atlanta from unionizing.

© Reuters. FILE PHOTO: A view shows the logo of Amazon at the Amazon Fulfillment Center during a media tour ahead of the holiday season in Tepotzotlan, Mexico, December 13, 2023. REUTERS/Gustavo Graf/File Photo/File Photo

Another regional director from the NLRB in Los Angeles concluded that Amazon should be considered a so-called "joint employer" of a separate contractor's employees and thus be obliged to negotiate with unions.

The company, however, has said in the past that it does not exert enough control over contractors' drivers to be considered their joint employer.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.