Amazon to settle delivery driver dispute worth potential £140m

Amazon is reportedly preparing to settle a group claim from delivery drivers who claimed the retail giant deprived them of thousands of pounds in earnings.According to The Guardian, lawyers involved in the case said the settlements could cost Amazon a total of £140m.

Drivers who deliver for the company through its delivery service partners (DSPs), independent businesses that provide drivers, are classed as self-employed, so do not have an employment contract or benefits such as minimum wage. 

Solicitors at Leigh Day brought a claim against Amazon and its DSPs in 2021, arguing that at least 3,000 drivers were entitled to an average of £10,500 in compensation for each year they had worked for the company.

The claim was based on the argument that drivers’ working conditions are dictated by Amazon, meaning they should have more rights.

Drivers cited how Amazon’s app gives them estimated travel times between deliveries which must be met. They are also not able to return parcels to the Amazon depot, and must therefore use extra fuel to redeliver them later. After paying vehicle rental and insurance, drivers claim they are often left with little earnings.

The Guardian said it is not yet clear how many drivers have received settlement offers or how much the settlement will cost Amazon and its DSPs.

However, when Leigh Day launched the claim it said that more than 3,000 drivers could be owed a total of £140m.

The Guardian said it understands that drivers who were represented by the firm have now received settlement offers.

Some payouts are reportedly worth tens of thousands of pounds, with drivers expected to receive compensation after Christmas.

The Guardian also reported that acceptance of the settlement offer was understood to prohibit drivers from making any further claims against Amazon.

Leigh Day and Amazon have been contacted for comment.