Amazon has revolutionized shopping and challenged traditional brick-and-mortar retail. But at the heart of this logistics machine are over a million workers whose experiences tell a far more complicated story. Using unique data from the Shift Project, our new report offers the first direct, large-scale comparison of working conditions for drivers and fulfillment employees at Amazon, UPS, and FedEx. The findings reveal stark disparities:
- Lower Wages: Average pay for Amazon delivery drivers is $19/hour, compared to $35/hour for unionized UPS drivers.
- No Upward Mobility: UPS drivers see wages rise sharply with seniority, reaching nearly $40/hour after 10 years. Amazon driver pay starts lower and doesn’t increase over time.
- Greater Hardship: 26% of Amazon drivers faced hunger in the past month; 33% couldn’t cover their utility bills—much higher than at UPS or FedEx.
- Unstable Jobs: Nearly half of Amazon drivers have less than a year of experience; stable, long-term employment is rare.
- Fewer Benefits: Amazon drivers are much less likely to have access to employer-sponsored benefits like paid sick leave or paid vacation.
- Intense Surveillance: 60% of Amazon drivers and warehouse workers report being monitored for speed and performance by technology, far exceeding rates at UPS and FedEx.
- Limited Protections:As independent contractors, Amazon Flex workers are not covered by basic labor standards like minimum wage or overtime. They are also ineligible for workers’ compensation, unemployment insurance and have limited protection against discrimination or harassment.
- Union Divide: UPS’s union model provides job security and upward mobility, while Amazon’s subcontracted (DSP) drivers face major obstacles to joining unions while Flex drivers are denied the right to unionize entirely.
Amazon’s gig-like approach is changing industry standards, putting downward pressure on wages, benefits, and job stability across the delivery sector—impacting not only their workers, but also the broader U.S. labor market.
This report is authored by Daniel Schneider, Professor at Harvard University, David Weil, Professor at Brandeis and former Administrator of the Wage and Hour Division at DOL, Julie Su, Senior Fellow at The Century Foundation and former Acting U.S. Secretary of Labor, and Kevin Bruey, pre-doctoral fellow at Harvard Kennedy School.