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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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Bluesky CEO Jay Graber says X rival is ‘billionaire proof’

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Bluesky CEO Jay Graber says X rival is 'billionaire proof'

Bluesky has surged in popularity since the presidential election earlier this month, suddenly becoming a competitor to Elon Musk’s X and Meta’s Threads. But CEO Jay Graber has some cautionary words for potential acquirers: Bluesky is “billionaire proof.”

In an interview on Thursday with CNBC’s “Money Movers,” Graber said Bluesky’s open design is intended to give users the option of leaving the service with all of their followers, which could thwart potential acquisition efforts.

“The billionaire proof is in the way everything is designed, and so if someone bought or if the Bluesky company went down, everything is open source,” Graber said. “What happened to Twitter couldn’t happen to us in the same ways, because you would always have the option to immediately move without having to start over.”

Graber was referring to the way millions of users left Twitter, now X, after Musk purchased the company in 2022. Bluesky now has over 21 million users, still dwarfed by X and Threads, which Facebook’s parent debuted in July 2023.

X and Meta didn’t immediately respond to requests for comment.

Threads has roughly 275 million monthly users, Meta CEO Mark Zuckerberg said in October. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates 318 million monthly users as of October.

Bluesky was created in 2019 as an internal Twitter project during Jack Dorsey’s second stint as CEO, and became an independent public benefit corporation in 2022. In May of this year, Dorsey said he is no longer a member of Bluesky’s board.

“In 2019, Jack had a vision for something better for social media, and so that’s why he chose me to build this, and we’re really thankful for him for setting this up, and we’ve continued to carry this out,” said Graber, who previously founded Happening, a social network focused on events. “We’re building an open-source social network that anyone can take into their own hands and build on, and it’s something that is radically different from anything that’s been done in social media before. Nobody’s been this open, this transparent and put this much control in the users hands.”

Part of Bluesky’s business plan involves offering subscriptions that would let users access special features, Graber noted. She also said that Bluesky will add more services for third-party coders as part of the startup’s “developer ecosystem.”

Graber said Bluesky has ruled out the possibility of letting advertisers send algorithmically recommended ads to users.

“There’s a lot on the road map, and I’ll tell you what we’re not going to do for monetization,” Graber said. “We’re not going to build an algorithm that just shoves ads at you, locking users in. That’s not our model.”

Bluesky has previously experienced major growth spurts. In September, it added 2 million users following X’s suspension in Brazil over content moderation policy violations in the country and related legal matters.

In October, Bluesky announced that it raised $15 million in a funding round led by Blockchain Capital. The company has raised a total of $36 million, according to Pitchbook.

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Alphabet shares slide 6% following DOJ push for Google to divest Chrome

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Alphabet shares slide 6% following DOJ push for Google to divest Chrome

Jaque Silva | Nurphoto | Getty Images

Alphabet shares slid 6% Thursday, following news that the Department of Justice is calling for Google to divest its Chrome browser to put an end to its search monopoly.

The proposed break-up would, according to the DOJ in its Wednesday filing, “permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet.”

This development is the latest in a years-long, bipartisan antitrust case that found in an August ruling that the search giant held an illegal monopoly in both search and text advertising, violating Section 2 of the Sherman Act.

The potential break-up would include preventing Google from entering into exclusionary agreements with competitors like Apple and Samsung, part of a set of remedies that would last 10 years.

CNBC’s Jennifer Elias contributed to this report.

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Nvidia shares slump 3% in premarket as quarterly revenue growth slows

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Nvidia shares slump 3% in premarket as quarterly revenue growth slows

POLAND – 2024/11/13: In this photo illustration, the NVIDIA company logo is seen displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)

Sopa Images | Lightrocket | Getty Images

Nvidia shares dropped in U.S. premarket trading Thursday after the tech giant’s third-quarter earnings failed to impress investors.

Shares of the chipmaker slumped 3.21% at around 5:03 a.m. ET, following the Wednesday release of Nvidia’s quarterly results, which beat on both the top and bottom lines.

Revenue came in at $35.08 billion, up 94% year-on-year and exceeding the $33.16 billion forecast by LSEG analysts. Earnings per share was 81 cents adjusted, also above analyst expectations.

Other chipmakers fell on the back of the market reaction to Nvidia’s third-quarter results. Shares of Intel, Qualcomm and Micron Technology all lost 1% or more in value, while AMD declined 0.6%.

The slump in Nvidia also had a knock-on effect on European semiconductor firms. ASML, a key chip equipment supplier, dropped 0.9%, while compatriot Dutch chip firm ASMI fell 0.5%. Chipmakers BE Semiconductor, STMicroelectronics and Infineon slipped 0.8%, 0.7 and 0.6%, respectively.  

Several notable chip names were also in negative territory in Asia. TSMC, which makes Nvidia’s high-performance graphics processing units, eased as much as 1.5%. Contract electronics manufacturer Foxconn dropped 1.9%.

Why are Nvidia shares falling?

Nvidia has largely cornered the market for the high-powered chips powering the world’s most advanced artificial intelligence models, such as OpenAI’s ChatGPT.

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