According to Amazon, contracted delivery drivers will receive more remuneration.

Amazon claims to be increasing the pay for its contracted drivers, who each day deliver millions of parcels to customers.

At a conference for delivery companies this week, the corporation declared that it would spend $440 million over the following year to raise driver pay rates. It did not specify the amount of the increase but stated that it anticipates U.S. drivers will make an average of $20.50 per hour.

Many of Amazon’s DSPs already charge significantly more than that. The minimum compensation for drivers nationwide was not disclosed by the corporation. On its website, it states that some employees at particular stations make at least $20 an hour.

In an effort to lessen its dependency on third parties like UPS and FedEx, the e-commerce giant started its delivery service partners program in 2018. According to Amazon, 3,500 businesses have joined the program over the past five years, creating 279,000 delivery employment across the globe. Although some companies have claimed that it was difficult to be profitable, the corporation provides the firms with a pot of money to cover salary and other expenditures for each route they are granted.

The business also said that it would put another $400 million into expanding educational possibilities for staff members who want to enroll in courses at approved schools and supporting employees who need child care. A firm spokeswoman stated that the expenditure will go toward safety and training in addition to other things.