Contracted drivers employed by Amazon are getting a bump in pay.
The Associated Press reported that the company said it will invest $440 million in the next year to increase drivers’ pay, but didn’t say exactly how much the increase will be, other than saying that it expects that drivers will earn on average of $20.50 an hour.
The exact amount will depend on the contractor’s location and other factors, CNBC reported.
Amazon launched its delivery partners program, known as DSP, in 2018, to transition away from UPS, FedEx and similar companies. The cyber retailer has about 3,500 partners employing 279,000 jobs globally.
Drivers are paid from money given to the partners by Amazon that is earmarked for pay and other expenses on their route. Many of the partners already pay more than the expected average that Amazon promised, the AP reported.
DSPs usually pay more than Amazon’s minimum, CNBC reported.
Amazon is also investing $400 million to help provide childcare support, expand educational opportunities, increase safety and provide training the AP reported.
DSPs will see the increased funding in October, CNBC reported.
