Amazon.com intends to boost pay and benefits for its delivery partners, as the company prepares for the holiday season amid a persistently tight labor market. Amazon will invest $450 million to fund wage increases and other benefits for delivery drivers employed by members of its Delivery Service Partners network. The company launched the program in 2018, encouraging entrepreneurs to build their own fleets of drivers with initial investments of as little as $10,000. Other benefits as part of the new initiative include up to $5,250 annually for drivers to pay for educational programs, and financial support for a 401(k) investment plan for drivers.

The announcement comes as Amazon has been restructuring the logistics network after it expanded too quickly during the pandemic. The company in recent years has implemented similar benefits for its warehouse workers as it grew the logistics network while trying to fend off union organizers who have started to make inroads in its workforce.