Amazon drivers to receive pay hike, education reimbursement

Amazon wants to spend more than $5,000 on driver education reimbursement. Additionally, it intends to help them financially with a 401(k)-investment plan. Not only that, the e-commerce company will spend around $450 million on wage increases and other perks.

Amazon made the decision to provide its DSP drivers in the US with a 401(k) scheme after learning that the majority of them consider retirement savings to be a crucial advantage. Matching the contributions of the drivers will aid the fleet owners. Amazon will provide roughly $60 million in the first year to make this possible so that the DSPs can afford the cost of matching their drivers’ payments.

Now, drivers who are a part of Amazon’s DSP network can also take advantage of educational incentives so they can finish high school or enrol in other courses. In the past four years, the company has already made roughly $7 billion in its Delivery Service Partners (DSP) network. With a $10,000 minimum commitment, it has been enticing resourceful people to build their own fleet of drivers.

The e-commerce behemoth will hire more people as the holiday shopping season approaches and is already concentrating on simplifying its logistics network. Similar bonuses were recently added by Amazon for anyone working in its warehouses. Following the exposure of the working conditions at its warehouses a year ago, Amazon has been subjected to criticism on social media.