Amazon Invests $1.9 Billion in Safer, Smarter Deliveries

Amazon (AMZN) said Monday it will invest another $1.9 billion in its Delivery Service Partner (DSP) program in 2027. To its delivery system, raising its total investment to $21.7 billion over eight years. At the Ignite Live conference (annual meeting), the company plans to invest significantly in improving drivers’ safety, adopting advanced Artificial Intelligence (AI), and raising employee salaries.

To create the safest delivery network possible, Amazon is rolling out new surround-view cameras in its delivery vans. These cameras track cars, cyclists, and pedestrians from all angles to prevent accidents. The retail giant expects to install this technology in half of its Rivian electric vehicles by the end of next year. Also, the official Amazon delivery app will now provide real-time alerts for construction and bad weather, automatically rerouting drivers to keep them out of harm’s way.

Amazon is also heavily incorporating next-generation tech into its daily operations. Its generative AI system, Wellspring, has already mapped out millions of building entrances and parking spots to save time. In addition, the company is projecting more than 20,000 Smart Delivery Glasses by the end of 2027. These high-tech glasses give the courier directions and delivery information in his field of vision and let him scan and confirm the delivery address without blocking his view.

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Finally, this heavy investment will help local delivery companies raise driver pay. The national average wage is expected to increase by about $1, pushing earnings up to nearly $24 per hour. While exact pay rates and extra benefits like tuition assistance vary by location, all delivery partners will offer standard health insurance and paid time off. After the announcement, Amazon shares rose nearly 1%, contributing to a solid 10% gain so far this year.