Amazon’s Delivery Deception – The Delivery Service Partner (DSP) Program

If you or a loved one is injured by an Amazon delivery driver, you might be shocked to find out that Amazon takes the position in court that it is not responsible for injuries caused by delivery drivers because it claims they are independent contractors. The “independent” companies that employ Amazon’s delivery drivers (referred to by Amazon as Delivery Associates or DAs) are only required to have $1 million in insurance coverage.

It is important to hire attorneys with the knowledge and experience necessary to expose the truth and develop evidence that shows Amazon exerts significant control over these delivery associates, and therefore, Amazon is legally responsible for any injuries its DAs cause while delivering packages for Amazon.

The attorneys at Fried Goldberg LLC have successfully represented numerous clients in lawsuits against Amazon and have developed a playbook for proving Amazon’s control and holding Amazon accountable.

The History of the DSP Program

Amazon processed over 13 million delivery orders per day in 2022 via its vast delivery network, which includes countless delivery drivers who operate under Amazon’s Delivery Service Partner Program (DSP). What the American public does not know is that when one of these delivery drivers negligently or recklessly injures someone, Amazon denies that it is their delivery driver or that Amazon has any legal responsibility whatsoever. Instead, Amazon claims that these drivers are employed by independent delivery companies. If you are injured by an Amazon delivery driver, you need to hire a law firm that has the experience and ability to hold Amazon accountable.

Amazon is the world’s largest online retailer. The company advertises fast, free next-day delivery for its over 200 million Prime members, each of whom pays $139 annually for their membership. Amazon originally relied on third-party delivery companies such as UPS, FedEx, and the United States Postal Service to provide last-mile delivery services to Amazon’s customers.

As Amazon grew, the company decided to develop its own logistics network to keep up with increasing demand as well as to gain more control over all aspects of the delivery cycle while also reducing costs and increasing profits. Amazon developed the Delivery Service Partner Program to build its own network of delivery companies that could provide last-mile delivery services for Amazon.

The current version of the DSP Program was launched in 2018. As of January 2024, Amazon has 3,500 Delivery Service Partner companies with 275,000 employees working for those companies to make sure over 20 million packages are delivered every day across 19 countries.

Amazon’s DSP Advertising

Amazon’s marketing claims the DSP program is Amazon’s way to empower people to own their own delivery service company and partner with Amazon while also impacting their own community. Amazon’s materials say that a person can start a DSP for as low as $10k and can earn $75k - $300k in annual profit.

How the DSP Program Works

Each prospective DSP owner must fill out an application and go through an interview process. They are required to create their own business entity (I.E. LLC), but Amazon places restrictions on the entity’s name. For example, they cannot use the words “Amazon,” “Prime,” or “DSP” in the name. They must also provide documentation to Amazon showing that they have at least $30,000 in liquid assets to start their business. Once they are approved by Amazon, each DSP owner is required to sign an extensive contract with Amazon and attend a 2-week training/orientation provided by Amazon.

Each Amazon DSP is required by Amazon to comply with Amazon’s policies. They must allow Amazon access to their business records, including payroll and time records. Each DSP must consent to allow Amazon to collect data on the DSP and its drivers including numerous categories of driving and delivery behavior.

Amazon arranges with numerous vendors to provide products and services to its DSPs at discounted and/or subsidized rates. This includes companies that provide uniforms, vehicle leasing, payroll services, background checks, fuel cards, insurance coverage, accounting/tax services, and driver-hiring tools.

Each DSP must maintain at least $1M in liability insurance coverage and include Amazon as an additional insured on the policy. They must register each delivery vehicle in their fleet with Amazon and meet Amazon’s requirements for size, space, and cleanliness.

Amazon financially incentivizes its DSPs to become Amazon-branded. Amazon-branded DSPs earn more per delivery than non-branded DSPs. In exchange for earning more, these DSPs agree to purchase Amazon-branded uniforms and lease Amazon-branded vehicles through a leasing company assigned to the DSP by Amazon.

The DSPs are only able to hire and use delivery associates who meet Amazon’s hiring criteria. Once hired, each delivery associate is required to undergo Amazon’s training on safe driving practices and delivery policies. The DSPs are also required to meet Amazon’s pay and benefit requirements.

The delivery associates are required to use the Amazon Flex application while on duty and making deliveries. This application instructs the DA where to go in the Amazon facility to find the packages assigned to the DA for delivery. It also instructs the DA on the order of how to load the delivery vehicle, the order of deliveries, and directions to each delivery location. Amazon is quick to point out that the DA has the right to choose their own order and path to their delivery locations.

In addition to the Flex application, each DA must also log into the Mentor application, which tracks delivery associate driving behaviors and assigns them a score. Amazon retains the right to inactivate or offboard any delivery associate from Amazon’s online DSP portal, which makes the DA ineligible to be assigned an Amazon delivery route.

Amazon’s Control

Most states’ negligence laws follow the doctrine of respondeat superior, which states generally that an employer or principal is legally responsible for the injuries resulting from its employee’s or agent’s negligence where the employer or principal controls the time, manner, and method of the employee’s / agent’s work. There are countless ways in which Amazon controls the DSPs and the DAs, including the ways described above. When a person is injured in a collision with an Amazon delivery vehicle, it is imperative that they hire attorneys who understand the inner workings of the DSP program and who know how to get the documents and testimony necessary to prove their case in court.