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Amazon to invest $1.9B in DSP program, add AI safety tools for drivers

Amazon to invest $1.9B in DSP program, add AI safety tools for drivers
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Andy Jassy, CEO for Amazon | X

Amazon has announced an investment of $1.9 billion in its Delivery Service Partner (DSP) program, which will include the introduction of AI-powered safety tools and other initiatives aimed at enhancing the delivery and driver experience.

According to Amazon, the DSP initiative, now in its seventh year, is designed to enable small businesses on a national scale. The program supports 4,500 owner-operators through rate card investments, upgraded safety technology, and new AI for business insights. The 2025 update includes operational incentives such as free Starbucks beverages during peak times and programmatic safety improvements like smarter routing and rapid map fixes. Additionally, there is a focus on community giving through the "Together, We Give" initiative. The emphasis remains on private-sector innovation, local entrepreneurship, and scalable logistics that promote growth.

Amazon outlines specific financial commitments and expected outcomes: $1.9 billion in new DSP investment brings the total over seven years to $16.7 billion; anticipated pay increases for DSP-driven workers are expected to reach a national average of nearly $23 per hour; a 13% average pay increase over the past two years; a 32% decline in risky driving behaviors over the last year; support for 4,500 DSPs within the network; and expanded AI capabilities that reduce hours of manual analysis to seconds. These figures highlight a disciplined approach to cost management and safety aligned with growth operations.

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In the broader market context, sustained parcel demand benefits efficient delivery networks. The Pitney Bowes Parcel Shipping Index estimates U.S. parcel volume reached approximately 22.37 billion in 2024, marking a 3.4% increase year-over-year with projections nearing 30 billion by 2030. In scenarios where volumes rise faster than revenue, network operators rely on automation, route intelligence, and managed fleets to maintain margins—areas where AI tools and safety telematics can significantly enhance throughput and service quality for small-business carriers.

Founded in 1994 and headquartered in Seattle with additional headquarters in Arlington, Amazon operates across e-commerce, cloud computing (AWS), advertising, and devices sectors. Its mission focuses on customer obsession, invention, operational excellence, and long-term thinking. Programs like DSP and Prime logistics extend Amazon’s reach to small enterprises by combining brand trust with delivery infrastructure while emphasizing safety and workforce experience alongside speed and reliability within its logistics ecosystem.

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