Amazon raises pay and enhances benefits for delivery drivers (2024)

Amazon raises pay and enhances benefits for delivery drivers (1)

By Alain Sherter

/ MoneyWatch

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.

Alain Sherter

Alain Sherter covers business and economic affairs for CBSNews.com.

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Amazon raises pay and enhances benefits for delivery drivers (2024)

FAQs

Does Amazon offer benefits for delivery drivers? ›

Comprehensive Health Benefits: Amazon drivers have access to a range of health benefits. This includes health insurance, medical and vision coverage.

Will Amazon drivers ever get paid more? ›

NEW YORK (AP) — Amazon says it's boosting pay for contracted drivers who deliver millions of packages to customers every day. The company announced at a conference for delivery firms this week that it will invest $440 million over the next year to increase pay rates for drivers.

Does Amazon DSP give you benefits? ›

In addition, DSPs provide health care coverage that meets or exceeds federal standards for affordability and minimum value (as defined by the Affordable Care Act, for all employees who average at least 30 hours per week), and full-time drivers receive at least 80 hours of paid time off per year.

Is Amazon giving money to drivers? ›

Amazon is reviving its popular "thank my driver" program to support their hard work. The program allows Amazon customers to tip drivers for delivering their packages – on the company's dime! That's right – Amazon will pay its drivers a $5 bonus for every thank you they receive from customers.

How much do Amazon pay delivery drivers? ›

The estimated total pay range for a Delivery Driver at Amazon is £10–£15 per hour, which includes base salary and additional pay. The average Delivery Driver base salary at Amazon is £12 per hour. The average additional pay is £0 per hour, which could include cash bonus, stock, commission, profit sharing or tips.

Does Amazon pay good for drivers? ›

Average Amazon.com Delivery Driver hourly pay in the United States is approximately $19.37, which is 12% above the national average.

How many packages does Amazon Driver deliver a day? ›

Drivers typically have between 170 and 350 packages to deliver per shift, depending on their location. Just like Uber and Doordash drivers, Amazon delivery drivers are not employees of the company they work for.

Do any drivers actually work for Amazon? ›

Amazon has partnered with local Delivery Service Partners (DSPs), independent delivery organizations that help Amazon deliver thousands of packages to customers every day. DSP delivery drivers are employed by individual DSPs (not Amazon).

Can you make good money driving for Amazon? ›

How much will I earn with Amazon Flex? Most delivery partners earn $18 - $25 per hour delivering with Amazon Flex. Actual earnings will depend on your location, any tips you receive, how long it takes you to complete your deliveries, and other factors.

How much does it cost to buy an Amazon route? ›

The pitch is certainly attractive enough to catch the attention of all entrepreneurs—both aspiring and seasoned—who like the idea of delivering packages for one of the fastest-growing retailers in the world: Amazon DSP owners can earn up to $300,000 a year in profit with startup costs as low as $10,000.

Is it profitable to be an Amazon DSP? ›

Annual profit potential $75K–300K*

As a hands-on business owner, you'll be responsible for ongoing costs such as wages, payroll, benefits, insurance, employee training, vehicle leases, maintenance, damages, devices, uniforms, and administrative services.

Do Amazon DSP drivers use their own cars? ›

DSPs are independent contractors who use Amazon-branded vehicles but are not Amazon employees, while Amazon Flex drivers use their own vehicles to make Amazon deliveries.

Can you make good money delivering Amazon packages? ›

How much will I earn with Amazon Flex? Most delivery partners earn $18 - $25 per hour delivering with Amazon Flex. Actual earnings will depend on your location, any tips you receive, how long it takes you to complete your deliveries, and other factors.

Does Amazon give salary increases? ›

Amazon increases hourly wages every year. Over the last five years, we've invested more than $10 billion in hourly pay, and since 2023, we've invested $1.3 billion toward pay increases for customer fulfillment and operations employees.

Do Amazon drivers get paid per parcel? ›

Each delivery block usually lasts between 3-6 hours, and drivers are paid a flat rate for each block they complete. The rate you get paid is not affected by how fast you make deliveries, so long as the deliveries are completed within the designated block.

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