Amazon Adds Earned Wage Access Offering for Delivery Service Partners

Amazon invested another $2.1 billion in its Delivery Service Partner (DSP) program designed to help small business entrepreneurs build delivery companies.

This addition brings the amount the company has invested in DSP since the launch of the program in 2018 to $12.3 billion, Amazon said in a Thursday (Sept. 12) press release.

Amazon’s incremental investment in the program will support DSP rate card increases, a new earned wage access offering and safety programs, according to the release.

“DSPs and their teams go to great lengths to take care of Amazon customers, and that’s why we want to support DSPs with our biggest investment yet,” Beryl Tomay, vice president of transportation at Amazon, said in the release.

The DSP rate card increases and bonuses will amount to an additional $660 million over the next year, the release said. They are meant to help DSPs boost the wages and benefits they offer their drivers, and recruit and retain high-performing teams, the release said.

The new earned wage access program offered by Amazon to DSPs is from PayActiv and will allow drivers to access up to half of their accrued wages before payday, per the release. The program will also support cash rewards, discounts, bill payments and a savings tool.

On the safety front, Amazon is continuously working on its artificial intelligence and technology tools that are designed to enhance both the safety outcomes and the driver experience, the release said. These tools enhance the company’s route-planning systems to produce routes that are easier for drivers, that allow more time for drivers to take breaks, that identify potential safety risks on the road and that provide safer routes.

Since the launch of DSP in 2018, the program has helped 4,400 entrepreneurs build and scale their businesses, creating 390,000 driving jobs and generating $58 billion in total revenue for their companies, according to the release.

It was reported in May that Amazon is ramping up its logistics expansion efforts to compete with rivals such as Walmart, Shein and Temu.

These efforts include acquiring industrial property and restructuring its distribution network to enhance package delivery speed and reduce shipping costs.