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Amazon drivers begin their delivery routes as workers at an Amazon warehouse in Staten Island, New York prepare to walk off their jobs demanding stepped-up protection and pay after several workers at the facility were diagnosed with COVID-19.
Paul Hennessy | Barcroft Media | Getty Images

Amazon delivery companies around the U.S. are instructing workers to bypass daily inspections intended to make sure vans are safe to drive.

Amazon requires contracted delivery drivers to inspect their vehicles at the beginning and end of their shift as a safety precaution. But some drivers say they’re pressured to ignore damage and complete the inspections as quickly as possible, so that delivery companies can avoid taking vans off the road. If delivery companies take a van off the road, they risk forfeiting valuable package routes and drivers may lose a shift.

These inconsistent inspection practices undermine the company’s public messaging around worker safety. They also highlight the tension that delivery partners face between ensuring drivers’ safety and keeping up with Amazon’s aggressive delivery quotas, which can stretch into hundreds of packages per day per driver.

CNBC spoke to 10 current and former Amazon delivery drivers in Georgia, Ohio, Indiana, Illinois, Kentucky and Texas who discovered their vans had issues ranging from jammed doors and tires with little to no tread to busted backup cameras and broken mirrors. They say managers told them to ignore these problems and complete their deliveries as usual. Some of these drivers asked to remain anonymous for fear of retribution from their employers or Amazon.

“They’d tell us, just make sure everything’s great and go,” said Chastity Cook, who quit working for an Amazon delivery company in Illinois earlier this year. “We just checked down the list. We don’t even stop to read it and make sure everything is there.”

Cook’s former employer, Courier Express One, couldn’t be reached for comment.

Amazon told CNBC in a statement that the company regularly audits delivery companies’ compliance with safety policies, including two vehicle safety checks every day. Amazon takes vehicles out of operation until safety issues are addressed, the company said.

“When safety protocol is broken, we take various actions including ending our relationship with a DSP [delivery service partner] if warranted,” the company said. “We’re actively investigating the experiences in this story and don’t believe they are representative of the more than 150,000 drivers that safely deliver packages every day.”

Amazon’s DSP program, launched in 2018, plays a critical role in the company’s vast fulfillment and logistics operations. The DSP network is made up of at least 2,000 contracted delivery firms and 115,000 drivers in the U.S., often distinguishable by blue Amazon-branded vans, that handle the last mile to shoppers’ doorsteps.  

Because the DSP network is run by partners, drivers and managers operate at arm’s length from the retail giant. The working environment and management quality varies greatly between DSPs, drivers say.

Amazon has previously said it informs drivers of best safety practices and has invested hundreds of millions of dollars in safety mechanisms across the DSP network. Before stepping down as CEO, Amazon founder and executive chairman Jeff Bezos pledged to make safety and employee satisfaction a greater focus at the company.

The company has increasingly relied on software and in-vehicle technology to monitor driver safety. Amazon in February rolled out AI-enabled cameras in its delivery vans that are designed to detect safety infractions and, for years, it has used an app called Mentor to track drivers’ driving behavior. Drivers and DSPs are scored by Amazon, in part, on their adherence to safety measures, which can determine their eligibility to receive bonuses.

Delivery companies have discovered workarounds to some of these tools. Vice reported in May that some DSPs were encouraging drivers to turn off Mentor while on their route to make sure they continue to hit Amazon’s delivery targets.

Additionally, Amazon continues to face broad scrutiny around the safety and treatment of its warehouse and delivery workforce. Under the pressure of getting packages to Amazon’s 200 million-plus Prime members, drivers are increasingly speaking out about working conditions, including claims that workers routinely urinate in bottles and are pushed into dangerous situations while on the road.

How the inspections work 

CNBC obtained a screen recording of the inspection process, referred to as a Driver Vehicle Inspection Checklist, showing a step-by-step breakdown of how it works. 

Drivers open the Flex app and scan a barcode on their vehicle that pairs it to the app. After that, a window appears in the app, instructing drivers to start the inspection.

Drivers check their vehicle’s front side, passenger side, back side, driver side and cab. Within each category are several subsections that require further inspection, such as the van’s lights, tires, mirrors, steering, cameras and brakes.

If a driver marks issues with the van, the Flex app will immediately prompt them to contact their manager. The app also won’t show drivers their package delivery route. Once the van is repaired, whichever driver is first assigned to the vehicle must verify in the Flex app that any issues were fixed.

Otherwise, a screen at the end of the checklist will say “you didn’t report any issues with the vehicle.” Drivers are required to check a box which states, “I hereby certify that my vehicle inspection report is true and accurate.”

Damaged seat belts, broken backup cameras

In its DSP safety manuals and instructional materials, Amazon encourages drivers not to drive dangerous vehicles. An inspection guide distributed to drivers and viewed by CNBC states, in bold and red font, “Do not operate any unsafe vehicle out on route.”

A separate, 11-page safety manual for DSPs states that, “Drivers must report all vehicle deficiencies, including malfunctions and defects, immediately.” The document, which is undated, also says that pre- and post-trip inspections are necessary to “ensure your assigned vehicle is road ready and doesn’t pose any hazards that prevent the safe operation of the vehicle.”

But drivers say there are persistent safety hazards in their vehicles, from jammed doors and broken backup cameras to bald tires and seatbelts that won’t lock, and managers discourage them from reporting these issues on the checklist.

“They told us not to mark things if they were broken because then the van wouldn’t be drivable,” said Cook, the driver from Illinois. “They said to report damages to management.”

An Amazon.com delivery driver carries boxes into a van outside of a distribution facility on February 2, 2021 in Hawthorne, California.
Patrick T. Fallon | AFP | Getty Images

One former driver from Austin, who asked to remain anonymous out of fear of retribution from their former employer, said a manager told them that if they marked anything wrong with their vehicle, they wouldn’t have a shift that day.

The driver said they noticed numerous safety hazards while working for their DSP. Several vans had broken backup alarms, which alert pedestrians and other vehicles when the van is reversing. Check engine lights and other sensors were often flashing on the vans — enough that drivers joked it looked like Christmas lights, the driver said.

Andre Kirk, a former Amazon delivery driver in Indiana, recalled when he was inspecting his van and noticed the check engine light was on. Kirk thought it meant it was supposed to be taken out of service, but he was forced to drive it anyway.

Concerned for his safety, Kirk drove the van to a nearby Jiffy Lube. The repairman told Kirk he couldn’t work on the Mercedes-Benz sprinter vans used by some DSPs, so Kirk decided to get back on the road and complete his shift as safely as possible.

Kirk said he was confused why his DSP wouldn’t let employees report issues like he experienced during vehicle inspections.

“I felt like something wasn’t right. Why not report this?” said Kirk, who was fired from his DSP in May, in an interview. “If this is not supposed to be in service, why am I still driving it?”

Kirk’s former employer, FAE Distributors, couldn’t be reached for comment.

‘There goes your route’

After drivers flag an issue during inspections, Amazon requires DSP companies to “ground” the vehicle, or take it out of operation for repairs.

Drivers say that managers avoid grounding vehicles because they don’t want to give up delivery routes. For example, if a DSP is forced to ground three vans for repairs, they may not have enough spare vans in their fleet to handle all the delivery routes Amazon assigned them that day.

Forfeiting a delivery route can cost a DSP.

Amazon pays contracted delivery companies for every package delivered each week and for every delivery route they pick up, according to drivers and a former DSP owner, who asked to remain anonymous because they are still in the logistics business.

The former DSP owner said they tried to get vehicle issues repaired as quickly as possible, but they would tell drivers not to mark issues in the Flex app in order to avoid grounding any vans and “dropping routes.”

Dropping a route not only hurts DSPs financially, but it can also affect the score assigned to them by Amazon. Amazon ranks delivery partners on a scale of “Poor” to “Fantastic+,” factoring in things like delivery performance. If a DSP’s ranking falls, it may lose out on bonus payments or receive worse routes in the future.

“The side door could be broken, front door could be broken and you’re not supposed to report it because they’ll ground the vehicle,” said one driver from Indiana. “And then there goes your route.”

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Amazon makes £8 billion UK investment to build cloud and AI infrastructure

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Amazon makes £8 billion UK investment to build cloud and AI infrastructure

Amazon’s computing unit AWS is in talks with Italy to invest billions of euros in the expansion of its data center business in the country as part of the tech giant’s effort to boost its cloud offer in Europe, four people familiar with the matter said.

Cesc Maymo | Getty Images News | Getty Images

LONDON — Amazon Web Services (AWS), the U.S. e-commerce giant’s cloud division, announced plans to invest £8 billion ($10.45 billion) over the next five years to build and operate data centers in the U.K. as it ramps up its cloud computing efforts in the country.

The investment, announced early Wednesday London time, comes as cloud players talk up the benefits of generative artificial intelligence (AI) and as companies look to integrate the tech into their businesses.

“We’ve seen a real uptake of cloud computing and AI technology by British businesses, and we know the U.K. has a very ambitious digital plan,” Tanuja Randery, managing director for European, Middle East and Africa at AWS, told CNBC in an interview.

“So this will go toward helping our customers to really be able to harness cloud computing, because you need the data centers to be able to actually provide cloud computing for our customers.”

AWS executive discusses the company's chip and cloud development, cost optimization

Randery said generative AI is “probably the most transformative technology we have seen, possibly since the cloud and the internet” and that businesses are currently trialing the nascent tech.

“We’ve also seen that businesses are looking at this in terms of both revenue growth, employee productivity, which is really, really critical, as you know, but also being able to compete globally.”

AWS, along with other cloud players, has been investing heavily in infrastructure, such as data centers and Nvidia chips, in order to train and run AI models. These cloud players then sell AI services to businesses.

AWS competes with Microsoft and Google in the U.K. and its investment continues the company’s focus on expansion in Europe. AWS said this year it plans to invest 8.8 billion euros in existing cloud infrastructure in Germany.

Entire value of Amazon can be justified by just AWS, says D.A. Davidson's Luria

But this investment also comes at a time when regulators in the U.K. are scrutinizing competition in the cloud market with AWS and Microsoft under the microscope. The Competitions and Markets Authority is currently looking into the the U.K. cloud market.

Randery said AWS is “working very constructively” with the CMA but that authorities need to balance regulation and innovation.

“We worked very closely with governments and regulators around the world, we believe that it’s important to have regulation, but that regulation should continue to be innovation friendly,” Randery told CNBC.

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AI-powered search startup Glean doubles valuation in new funding round led by Altimeter

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AI-powered search startup Glean doubles valuation in new funding round led by Altimeter

 Arvind Jain, CEO Glean, on SaaS Monster stage during day one of Web Summit 2022 at the Altice Arena in Lisbon, Portugal.

Harry Murphy | Sportsfile | Getty Images

AI-powered search startup Glean said Tuesday it has raised $260 million in a funding round that values the tech company at $4.6 billion — more than double its last reported valuation. The Palo Alto, California-based firm, ranked No. 43 on this year’s CNBC Disruptor 50 list, has now raised more than $600 million to date from more than 20 investors.

Glean competes with a herd of well-financed generative AI startups and tech giants, attempting to compete with Microsoft Copilot and chatbot Amazon Q. It also aims to disrupt a field of cognitive search tool providers such as Perplexity, Coveo, Sinequa and LucidWork.  

Glean’s Series E round, led by Altimeter and DST Global, includes Craft Ventures, Sapphire Ventures, and SoftBank Vision Fund 2, all new investors in the company.

Existing investors in the round include Coatue, General Catalyst, ICONIQ Growth, IVP, Kleiner Perkins, Latitude Capital, Lightspeed Venture Partners, and Sequoia Capital.

Founder and CEO Arvind Jain started Glean in 2019 with other former Google engineers as an enterprise search engine. The company soon transitioned to generative AI. Jain has described Glean as Google and ChatGPT for businesses. It offers conversational AI to sort through internal data, retrieve information, and present quick answers. Jain is also a founder of Rubrik, which had a successful IPO in April.

“Businesses today are in the midst of an AI transformation — one that promises to be as big or bigger than the internet, mobile, cloud, and other major technology shifts of the past century,” Jain said in a blog post announcing the latest round.

Global enterprise spending on generative AI is projected to rocket from $16 billion in 2023 to $143 billion in 2027 and account for 28% of AI expenditures, according to tech research and advisory firm IDC.

More coverage of the 2024 CNBC Disruptor 50

In a breakout year for AI funding, startups in that industry saw five times the level of investment as the previous year. As many as 36 generative AI startups have become unicorns, according to CB Insights, as valuations surged and corporate investors Microsoft, Amazon, Meta and Google led the march.

Sign up for our weekly, original newsletter that goes beyond the annual Disruptor 50 list, offering a closer look at list-making companies and their innovative founders.

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Britain does a bad job at keeping globally relevant tech firms, former Arm CEO says

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Britain does a bad job at keeping globally relevant tech firms, former Arm CEO says

Warren East, former CEO of Rolls Royce and Arm, speaking at a tech event in London on June 13, 2022.

Luke MacGregor | Bloomberg via Getty Images

CAMBRIDGE, England — The U.K. is doing a bad job of commercializing technology businesses globally and needs a mindset shift from the investor community to win on the world stage, a former CEO of British chip design firm Arm said Tuesday.

In a keynote speech at Cambridge Tech Week, Warren East, who led Arm between 1994 and 2013, said that there have been criticisms that lackluster growth and poor rates of GDP per head in the U.K. are a source of national “embarrassment.”

He added that too often firms that achieve scale in Britain have a tendency to change locations from the U.K. or list abroad in countries such as the U.S., due to difficulties with achieving global relevance from the country.

“I think we have a lot to offer in terms of U.K.-based innovative technology,” East told the audience at Cambridge Tech Week. However, he added: “We tend not to be able to realise as many global businesses as that promise would suggest.”

East was also previously the CEO of U.K. aviation engineering giant Rolls-Royce. He is currently a non-executive director on the board of Tokamak Energy.

East said that Britain “needs to get commercialization right,” adding that too much innovation gets created in the U.K. but is then exported elsewhere around the world.

There is “sadly a common story of all the wonderful stuff that gets made in Britain and then gets commercialized and exploited elsewhere,” East said. He added that he doesn’t have a “silver bullet” solution on how to fix the issue, but suggested that the U.K. needs to encourage more “risk appetite” to support high-growth tech firms.

“We’re often told that the problem isn’t the startup bit, it’s the scale up bit,” East said, explaining that there are far deeper pools of capital presence in the U.S. “Investor risk appetite in the U.S. is higher than it is in the U.K.,” he said

East noted that there have been pushes among the British entrepreneurial community and VCs for a change to capital market rules that will allow more investments from pension funds into startups and “stimulate risk appetite” in the U.K.

“Fortunately I think we can expect more of that over the coming years,” East told attendees of the Cambridge event. However, he added: “Businesses can’t guarantee that’s going to happen, and can’t wait for the rules to change.”

Last year, Arm, whose chip architectures can be found in most of the world’s smartphone processors, listed on the Nasdaq in the U.S. in a major blow to U.K. officials and the London Stock Exchange’s ambitions to hold more tech debuts in Britain.

The company remains majority-owned by Japanese tech giant SoftBank.

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