New Jersey Sues Amazon Over 2018 Delivery Network, Alleging Monopsony That Depresses Driver Pay
Updated
Updated · CNBC · Aug 4
New Jersey Sues Amazon Over 2018 Delivery Network, Alleging Monopsony That Depresses Driver Pay
2 articles · Updated · CNBC · Aug 4
Summary
New Jersey filed an antitrust suit in federal court accusing Amazon of using its delivery service partner network to suppress competition for drivers and hold down wages.
The complaint says Amazon blocks contractors from hiring each other’s drivers and prevents unionization, leaving workers with lower pay and harsher conditions.
Amazon’s DSP program, launched in 2018, relies on thousands of small contractors for last-mile deliveries and helped the company cut reliance on UPS and FedEx while speeding shipments.
The case adds to broader scrutiny of Amazon’s contractor model, which critics say lets it avoid direct-employer liability while still controlling wages, schedules and uniforms.
New York City is also weighing rules that could force Amazon to employ DSP drivers directly, a move Amazon says could push it to shift delivery operations outside the city.