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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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AI could affect 40% of jobs and widen inequality between nations, UN warns

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AI could affect 40% of jobs and widen inequality between nations, UN warns

Artificial intelligence robot looking at futuristic digital data display.

Yuichiro Chino | Moment | Getty Images

Artificial intelligence is projected to reach $4.8 trillion in market value by 2033, but the technology’s benefits remain highly concentrated, according to the U.N. Trade and Development agency.

In a report released on Thursday, UNCTAD said the AI market cap would roughly equate to the size of Germany’s economy, with the technology offering productivity gains and driving digital transformation. 

However, the agency also raised concerns about automation and job displacement, warning that AI could affect 40% of jobs worldwide. On top of that, AI is not inherently inclusive, meaning the economic gains from the tech remain “highly concentrated,” the report added. 

“The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies,” it said. 

The potential for AI to cause unemployment and inequality is a long-standing concern, with the IMF making similar warnings over a year ago. In January, The World Economic Forum released findings that as many as 41% of employers were planning on downsizing their staff in areas where AI could replicate them.  

However, the UNCTAD report also highlights inequalities between nations, with U.N. data showing that 40% of global corporate research and development spending in AI is concentrated among just 100 firms, mainly those in the U.S. and China. 

Furthermore, it notes that leading tech giants, such as Apple, Nvidia and Microsoft — companies that stand to benefit from the AI boom — have a market value that rivals the gross domestic product of the entire African continent. 

This AI dominance at national and corporate levels threatens to widen those technological divides, leaving many nations at risk of lagging behind, UNCTAD said. It noted that 118 countries — mostly in the Global South — are absent from major AI governance discussions. 

UN recommendations 

But AI is not just about job replacement, the report said, noting that it can also “create new industries and and empower workers” — provided there is adequate investment in reskilling and upskilling.

But in order for developing nations not to fall behind, they must “have a seat at the table” when it comes to AI regulation and ethical frameworks, it said.

In its report, UNCTAD makes a number of recommendations to the international community for driving inclusive growth. They include an AI public disclosure mechanism, shared AI infrastructure, the use of open-source AI models and initiatives to share AI knowledge and resources. 

Open-source generally refers to software in which the source code is made freely available on the web for possible modification and redistribution.

“AI can be a catalyst for progress, innovation, and shared prosperity – but only if countries actively shape its trajectory,” the report concludes. 

“Strategic investments, inclusive governance, and international cooperation are key to ensuring that AI benefits all, rather than reinforcing existing divides.”

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Nvidia positioned to weather Trump tariffs, chip demand ‘off the charts,’ says Altimeter’s Gerstner

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Nvidia positioned to weather Trump tariffs, chip demand 'off the charts,' says Altimeter's Gerstner

Altimeter CEO Brad Gerstner is buying Nvidia

Altimeter Capital CEO Brad Gerstner said Thursday that he’s moving out of the “bomb shelter” with Nvidia and into a position of safety, expecting that the chipmaker is positioned to withstand President Donald Trump’s widespread tariffs.

“The growth and the demand for GPUs is off the charts,” he told CNBC’s “Fast Money Halftime Report,” referring to Nvidia’s graphics processing units that are powering the artificial intelligence boom. He said investors just need to listen to commentary from OpenAI, Google and Elon Musk.

President Trump announced an expansive and aggressive “reciprocal tariff” policy in a ceremony at the White House on Wednesday. The plan established a 10% baseline tariff, though many countries like China, Vietnam and Taiwan are subject to steeper rates. The announcement sent stocks tumbling on Thursday, with the tech-heavy Nasdaq down more than 5%, headed for its worst day since 2022.

The big reason Nvidia may be better positioned to withstand Trump’s tariff hikes is because semiconductors are on the list of exceptions, which Gerstner called a “wise exception” due to the importance of AI.

Nvidia’s business has exploded since the release of OpenAI’s ChatGPT in 2022, and annual revenue has more than doubled in each of the past two fiscal years. After a massive rally, Nvidia’s stock price has dropped by more than 20% this year and was down almost 7% on Thursday.

Gerstner is concerned about the potential of a recession due to the tariffs, but is relatively bullish on Nvidia, and said the “negative impact from tariffs will be much less than in other areas.”

He said it’s key for the U.S. to stay competitive in AI. And while the company’s chips are designed domestically, they’re manufactured in Taiwan “because they can’t be fabricated in the U.S.” Higher tariffs would punish companies like Meta and Microsoft, he said.

“We’re in a global race in AI,” Gerstner said. “We can’t hamper our ability to win that race.”

WATCH: Brad Gerstner is buying Nvidia

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YouTube announces Shorts editing features amid potential TikTok ban

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YouTube announces Shorts editing features amid potential TikTok ban

Jaque Silva | Nurphoto | Getty Images

YouTube on Thursday announced new video creation tools for Shorts, its short-form video feed that competes against TikTok. 

The features come at a time when TikTok, which is owned by Chinese company ByteDance, is at risk of an effective ban in the U.S. if it’s not sold to an American owner by April 5.

Among the new tools is an updated video editor that allows creators to make precise adjustments and edits, a feature that automatically syncs video cuts to the beat of a song and AI stickers.

The creator tools will become available later this spring, said YouTube, which is owned by Google

Along with the new features, YouTube last week said it was changing the way view counts are tabulated on Shorts. Under the new guidelines, Shorts views will count the number of times the video is played or replayed with no minimum watch time requirement. 

Previously, views were only counted if a video was played for a certain number of seconds. This new tabulation method is similar to how views are counted on TikTok and Meta’s Reels, and will likely inflate view counts.

“We got this feedback from creators that this is what they wanted. It’s a way for them to better understand when their Shorts have been seen,” YouTube Chief Product Officer Johanna Voolich said in a YouTube video. “It’s useful for creators who post across multiple platforms.”

WATCH: TikTok is a digital Trojan horse, says Hayman Capital’s Kyle Bass

TikTok is a digital Trojan horse, says Hayman Capital's Kyle Bass

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