When we launched the Delivery Service Partner (DSP) program four years ago, we focused on building a program that would enable small business owners to have access to the tools and resources they needed to build successful delivery companies. Along the way, we worked closely with these owners and learned that a key to setting them up for success lies in helping them build empowered teams. To continue to help DSPs to create the best workplaces around the world, we are investing big and offering access to new, best-in-class benefits from leading providers to help DSPs empower their drivers to grow and have thriving careers, including a new program to fund access to college degrees and a 401(k) plan.
Next Mile is our new educational program that provides participating DSPs funding up to $5,250 per eligible driver per year for access to over 1,700 academic programs, including bachelor's and associate degrees, skill certifications, and high school completion courses. We're also adding a 401(k) plan from a leading benefits provider to the suite of services available to DSPs and will provide DSPs an estimated $60 million over the next year to help these small business owners match employee contributions.
These new investments, along with new rate increases for DSPs, will total more than $450 million over the next year, and help us enable these owners to be great employers and build great teams. With the addition of these new program offerings, Amazon now supports participating DSPs in offering their drivers education and career advancement benefits and financial planning for the future, as well as business coaching and resourcing for DSP owners themselves.
"As a small business owner and community leader, having the ability to provide industry-leading benefits like educational assistance and retirement saving is incredible," said Mike Tran, an Amazon Delivery Service Partner and owner of Pacific Keys Logistics. "For so many, education is the foundation of opportunity and empowerment. I'm grateful that I can now provide these incredibly valuable benefits for my team. Every day they work so hard to serve the local community, and offering them amazing benefits and resources is so rewarding."
For more than three years, Tran has led and developed great drivers and employees locally as a DSP owner. Tran is among more than 3,500 DSPs around the world that empower more than 275,000 drivers, who safely deliver more than 10 million customer packages every day. We are excited to launch new benefits to add to our existing resources for DSP owners like Tran, including owner business coaching, infrastructure, and tools like payroll, insurance, and better leasing rates for vehicles.
Empowering DSPs and their teams to achieve their dreams
The Next Mile program enables DSPs to invest and support in their employees with offerings that allow drivers to build new skills to help them achieve their career aspirations across a range of industries, including health care, manufacturing, and technology. Next Mile is offered by InStride and was inspired by Amazon's Career Choice program, which offers college tuition prepaid to more than 750,000 hourly Amazon employees. Next Mile provides drivers of participating DSPs similar access to skill-based programs, GEDs, and degree programs across the country. As part of the program, participants also have access to curated career pathways to help them identify educational programs and career options based on skills and interests. The Next Mile offering will be available to drivers of participating DSPs beginning in January 2023.
"Every day, customers across the globe see Amazon DSPs drivers delivering packages to their doorsteps," said Parisa Sadrzadeh, vice president of Amazon's Worldwide Delivery Service Partner Program. "Through the DSP program, small businesses around the world have generated over $26 billion in revenue for their companies since the program launched four years ago. This wouldn’t have been possible without DSPs and their incredible teams."
Providing DSPs and their teams with the tools they need to secure their present and future
The DSP program has been successful through our long-term partnerships with DSP owners, and more than 70% of DSP drivers have said that retirement savings is a critical benefit. To help DSPs further invest in their drivers and enable them to plan for their futures, we are thrilled to offer all U.S. based DSPs access to a 401(k) plan through a leading provider of retirement savings benefits. We'll provide DSPs an estimated $60 million in the first year to help offset the costs for DSPs that match employee contributions to their team’s retirement savings and future success, and reimburse 100% of the administrative costs to DSPs that provide benefits through the preferred provider. We are excited for DSPs to offer a meaningful benefit that will help their teams plan for their financial future.
"As a business owner, providing my team of dedicated, hard-working associates with these benefits lets them know I truly care and that I'm committed to their continued success in life," Tran said.
Amazon has invested over $7 billion worldwide over the past four years in safety technology, driver training programs, increases to the rates we pay DSPs, and program improvements so drivers can safely and seamlessly deliver for customers. Learn more about Amazon's Delivery Service Partner program and delivery driver opportunities.