Amazon is increasing its 2027 DSP investment while expanding AI-driven delivery, safety and routing technology across its last-mile network.
- The company expects more than 20,000 Smart Delivery Glasses in the field by the end of 2027.
- Amazon’s latest commitment brings its total investment in the DSP program to $21.7 billion since its launch.
- Amazon expects its investments to have lifted driver pay by an average of 16% over three years, with average earnings rising about $1 more to nearly $24 an hour.
Amazon (AMZN) said Monday it will invest another $1.9 billion in its Delivery Service Partner (DSP) program in 2027, taking its total investment in the program to $21.7 billion since its launch eight years ago.
The company outlined the investment at its annual Ignite Live conference for DSP owners in Las Vegas.
Shares of AMZN traded nearly 1% higher at the time of writing on Monday.
Amazon Expands Delivery Safety Technology
Amazon said it has invested more than $543 million in safety initiatives, programs and technology for DSP owners and their teams since 2022. Beryl Tomay, Amazon’s Vice President of Transportation, said the company’s goal has been to build “the safest delivery network in the world.”
The company is rolling out surround-view cameras that identify vehicles, cyclists and pedestrians from all directions and notify Delivery Associates. Amazon expects the technology to be installed in 50% of Rivian electric delivery vehicles across its network by the end of 2026.
The Amazon Delivery App will also provide dynamic alerts for accidents, road closures and construction, while navigation will automatically adjust routes when hazards or inclement weather are detected.
AI Tools And Smart Glasses
Amazon said its generative AI mapping technology, Wellspring, has identified 202 million parking locations, mapped 2.8 million building entrances and cataloged 85,000 mailrooms and lockers since 2024.
The company is also expanding its AI-based routing technology to account for conditions such as reduced visibility after sunset and the additional time needed to find parking. Tomay said Amazon is using “hardware and AI-backed software systems” to help DSP owners run stronger operations and improve the delivery experience.
Amazon expects to have more than 20,000 Smart Delivery Glasses in the field by the end of 2027. The AI-powered glasses provide navigation suggestions and delivery details in a worker’s line of sight, with new features including hands-free scanning and proactive address verification.
Driver Pay To Rise
Amazon expects its investments over the past three years to have helped DSP owners increase driver pay by an average of 16% nationwide. National average earnings are expected to rise by roughly another $1 to nearly $24 per hour.
Amazon said the exact pay rates and benefits vary by DSP and geography because DSP owners make those decisions as employers. The company said all DSPs provide healthcare coverage and paid time off for full-time Delivery Associates, while many also offer benefits such as 401(k) plans and tuition reimbursement.
On Stocktwits, the retail sentiment for AMZN remained ‘bearish’, over the past 24 hours.
AMZN shares have gained over 10% year-to-date.
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