Amazon (AMZN) Puts Another $1.9 Billion Into its Delivery Network. The Cost of the Last Mile is Rising
Source: Insider Monkey ·
Amazon.com Inc (NASDAQ:AMZN) said on September 21 that it will invest $1.9 billion in its Delivery Service Partner program in 2027. Much of that goes to driver pay. The announcement came at Ignite Live, the company’s annual conference in Las Vegas for the small businesses that run its delivery routes. Amazon said the money supports […]
From the source
Amazon.com Inc (NASDAQ: AMZN ) said on September 21 that it will invest $1.9 billion in its Delivery Service Partner program in 2027. Much of that goes to driver pay. The announcement came at Ignite Live, the company's annual conference in Las Vegas for the small businesses that run its delivery routes. Amazon said the money supports lifting driver pay to a national average of close to $24 an hour. It described that pay level as 16% higher than three years ago. The company has now put $21.7 billion into the program across its eight-year history. READ ALSO: Amazon (AMZN) Bets Higher Pay Can Support its Next Phase of Growth Owning the Last Mile is What Rivals Cannot Rent: Amazon built this network because nobody else would deliver on its terms. That decision is a large part of why same-day delivery works, and it is the piece a competitor cannot simply rent. Delivery is a labor market before it is a logistics problem. Drivers have other options when the pay gap narrows, and turnover is…