Amazon will increase pay and give benefits to some delivery drivers after workers protested earlier this year.
The e-commerce giant announced a $450 million investment in raising rates, an education program, and a 401(k) plan for its US-based Delivery Service Partners (DSPs).
It is trying to keep delivery workers satisfied on the job with two new value-added services to its DSPs program.
Amazon VP Parisa Sadrzadeh said: “Through the DSP program, small businesses around the world have generated over $26 billion in revenue for their companies since launching four years ago.
“We couldn’t have done that without DSPs and their incredible teams.
“We will continue to innovate with them and use our economies of scale and resources to help them provide best-in-class offerings to their employees.”
Amazon has already been chastised for its treatment of delivery drivers.
The company apologized last year for denying that some of its drivers urinate in bottles owing to the job’s stringent time limits.
Last year, the firm reached a settlement with the Federal Trade Commission to repay drivers $60 million in tips that were reportedly unlawfully withheld by the company.
Delivery drivers from Amazon’s Flex delivery program protested in Los Angeles in March, seeking more wages to offset rising fuel prices.
This salary rise, however, impacts Amazon’s Delivery Service Partner program, which is distinct from Amazon’s Flex program.
DSPs are distinct entities that employ and manage drivers on Amazon’s behalf.
Those drivers work for the individual DSPs.
Flex employees, like Uber drivers or Doordash delivery people, are independent contractors that work for Amazon.
Amazon covers delivery service partners’ gas expenses, but not all fuel costs for Flex delivery partners.
Source: Business Insider