Amazon invests $1.9B in delivery partner network as Q3 profits rise

The DSP funding supports safety programs, driver training, and new technology for Amazon’s growing fleet of small-business delivery contractors.

Jassy said Amazon is on track to deliver to Prime members at its fastest speeds ever for the third consecutive year, including the rollout of three-hour delivery in select U.S. cities.

In addition to its $1.9 billion reinvestment in the DSP program disclosed in its quarterly report, Amazon is now broadening same-day grocery delivery to more than 1,000 U.S. cities, with plans to reach 2,300 locations by year-end.

The company also introduced a new “add-to-delivery” button — already used 80 million times — that lets customers combine last-minute orders into existing shipments.

“Customers who start shopping for fresh groceries on Amazon are returning twice as often as nonperishable shoppers,” Jassy said.

Amazon plans to hire 250,000 U.S. seasonal workers for the holidays to support its expanded delivery network and rural coverage. Olszewski said fulfillment efficiencies are “delivering a better customer experience while driving a more efficient cost structure,” helping maintain margins despite $4.3 billion in legal and severance charges during the quarter.

The North America segment, which includes logistics operations, posted $106.3 billion in sales, up 11% year over year.

Despite the seasonal hires, Amazon is laying off 1,403 workers in California, according to WARN documents filed with the state on Tuesday, part of a wider slash to its corporate workforce that will eliminate 14,000 total roles. The cuts arrive as Amazon is reportedly investmenting heavily in artificial intelligence technology.