Amazon wishes to spend over $5,000 on education reimbursement for its drivers. It also plans to provide them financial assistance for a 401(k) investment scheme. That is not all. The e-commerce company is going to invest about $450 million in pay hikes and other benefits.
Having discovered that a majority of its DSP drivers in the US feel that retirement savings are a critical benefit, Amazon decided to offer them a 401(k) scheme. It will help the fleet owners to match the drivers’ contributions. To make this happen, Amazon will offer about $60 million in the first year, so that, the DSPs can comfortably handle the expense of matching their drivers’ contributions.
The drivers part of Amazon’s DSP network will now also be able to avail of educational benefits using which they can compete high school or take other courses.
The Company has already invested about $7 billion on its Delivery Service Partners (DSP) network in the last four years. It has been encouraging enterprising people to put together their own fleet of drivers with a minimum investment of $10,000.
With the holiday season fast approaching, the e-commerce giant is going to increase hiring and is already focussing on streamlining its logistics network.
Not too long ago, Amazon had introduced similar benefits for the employees working at its warehouses. Amazon had faced heavy criticism on social media after the working conditions at it warehouses were exposed about a year ago.
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