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American households have become dependent on Amazon.

The numbers say it all: In 2024, 83% of U.S. households received deliveries from Amazon, representing over 1 million packages delivered each day and 9 billion individual items delivered same-day or next-day every year. In remarkably short order, the company has transformed from an online bookseller into a juggernaut that has reshaped retailing. But its impact isn’t limited to how we shop.

Behind that endless stream of packages are more than a million people working in Amazon fulfillment centers and delivery vehicles. Through its growing dominance in retail, Amazon has eclipsed its two major competitors in the delivery business, UPS and FedEx, in terms of package volume.

What is life like for those workers? Between Amazon’s rosy public relations on the one hand and reporters’ and advocates’ troubling exposés on the other, it can be hard to tell. Part of the reason is that researchers like us don’t have much reliable data: Workers’ experiences at companies such as Amazon, UPS and FedEx can be a black box. Amazon’s arm’s-length relationship with the drivers it depends on for deliveries makes finding answers even harder.

But that didn’t stop us. Using unique data from the Shift Project, our new study, co-authored with Julie Su and Kevin Bruey, offers the first direct, large-scale comparison of working conditions for drivers and fulfillment employees at Amazon, UPS and FedEx based on survey responses by more than 9,000 workers.

What we found was deeply troubling – not only for Amazon drivers but also for the future of work in the delivery industry as a whole.

2 models, 2 realities

For nearly a century, driving delivery trucks has been a pathway to the middle class, as epitomized by unionized jobs at UPS. UPS drivers, who have been members of the Teamsters union for decades, are employees with legal protections and a collective-bargaining contract.

In contrast, Amazon has embraced a very different model. Most important is that Amazon does not directly employ nearly any of its delivery drivers.

Instead, its transportation division, Amazon Logistics, relies on two methods to deliver most of its shipments: Amazon Flex, a platform-like system that treats drivers like independent contractors, and Amazon DSP, a franchise-like system that uses subcontractors. DSP subcontractors are almost all nonunion, and the company has cut ties with DSP contractors whose drivers have attempted to unionize. These practices place downward pressure on the wages and working conditions of drivers throughout the industry.

The impact on workers is stark.

Delivery workers at Amazon receive significantly lower wages than at UPS and FedEx, we found. Wage gaps are especially large between the delivery workers at Amazon, who earn US$19 an hour on average, and the unionized drivers at UPS, who make $35.

We also found that unionized UPS drivers have a clear pathway to upward mobility, while Amazon drivers don’t. At UPS, wages increase sharply the longer a worker has been on the job. Pay starts at $21 an hour, reaching nearly $40 an hour for drivers who’ve been with the company for at least 10 years – which is more than half of them.

At Amazon, wages start at $17 an hour and don’t increase with tenure. Nearly half of workers have less than a year on the job.

Between lower wages, more unstable schedules, fewer benefits and limited protections from employment laws, Amazon drivers struggle to make ends meet. More than 1 in 4 told us they had gone hungry because they couldn’t afford enough to eat within the past month, and 33% said they couldn’t cover their utility bills. Compared to drivers at UPS and FedEx, Amazon drivers face significant financial instability.

On top of that, Amazon drivers face intense workplace surveillance and speed tracking – as do workers at the company’s fulfillment centers. Sixty percent of both types of Amazon workers received frequent feedback on the speed of their work from a technological device, and more than two-thirds said that Amazon monitors the quality of their work using technology. That degree of technological surveillance and tracking far outpaces what UPS and FedEx workers told us they were exposed to, representing an extreme case of worker monitoring and performance assessment.

Using nonemployee drivers contributed to the exponential growth of Amazon as a package delivery company. In 2023, Amazon for the first time delivered more packages than UPS, making it the second-largest parcel carrier in the country – surpassed only by the U.S. Postal Service.

By building an online retail empire with the capacity to deliver the majority of its own shipments, Amazon’s expansion continues. UPS, by contrast, has seen drops in its revenues, stock value and market capitalization. Amazon’s sheer size and giglike approach are therefore changing industry standards, putting downward pressure on wages, benefits and job stability across the delivery sector.

The contrast between Amazon and UPS drivers isn’t just about two companies using different models for package delivery – it represents two competing futures for work. As the second-largest retail company and now largest private delivery company in the U.S., Amazon exerts market power that impacts the working conditions of workers beyond its own delivery drivers. Recent reporting indicates that UPS has been experimenting with using gig deliveries, much to the consternation of the union that represents three-quarters of its workforce.

In the post-World War II era, increasing unionization led to better wages and conditions across much of the economy, including nonunionized sectors. The continuing expansion of Amazon’s business model could signal the unraveling of wages, benefits and protections for working people more generally.

MILWAUKEE–(BUSINESS WIRE)–
Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, today announced that it has been named a Leader in the IDC MarketScape: North America Retail Digital Banking Solutions 2025-2026 Vendor Assessment (doc #US52039425, November 2025).

According to the report, “Experience Digital is suited for banks and credit unions of all sizes, direct banks, and neobanks seeking a core-agnostic digital banking solution deployable across multiple environments. It is especially relevant for existing Fiserv core clients seeking a unified vendor for both core and digital banking, while also offering flexibility for on-premises or cloud-hosted deployment.”

“We believe being recognized by the IDC MarketScape as a Leader affirms the strength of our strategy and the trust our clients place in us,” said Whitney Russell, Head of Digital and Financial Solutions, Fiserv. “At Fiserv, we are empowering financial institutions to deliver the kind of digital experiences that deepen relationships, drive growth and define the future of banking.”

The IDC MarketScape provides a rigorous, structured framework for evaluating technology providers, going beyond market share to assess product capabilities, strategic direction, and long-term success potential.

“As consumers and small businesses increasingly turn to digital banking, Experience Digital enables institutions of all sizes to deliver a full range of sought-after experiences,” said Marc DeCastro, Research Director at IDC. “This positions financial institutions to remain central to real-time money movement, bill pay, P2P, and alerts for the customers they serve.”

Built to unify consumer and business banking across online and mobile channels, Experience Digital integrates seamlessly with both Fiserv and non-Fiserv core platforms, payments, and merchant services. The platform offers two deployment paths:

– Configure Digital – for institutions seeking a configurable solution

– Create Digital – for those building custom experiences with internal development teams

Experience Digital also connects with:

– Finxact® – Fiserv’s cloud-native core

– CashFlow Central^SM – accounts payable/receivable platform

– Clover® – the world’s smartest point of sale system

Together, these integrations create a unified digital ecosystem that bridges retail banking, small business services, and payments.

About IDC MarketScape

IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of technology suppliers can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective suppliers.

About Fiserv

Fiserv, Inc. (NYSE: FI), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover®, the world’s smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500® Index, one of TIME Magazine’s Most Influential Companies™ and one of Fortune® World’s Most Admired Companies™. Visit fiserv.com and follow on social media for more information and the latest company news.

FI-G

View source version on businesswire.com: https://www.businesswire.com/news/home/20251106402965/en/

For more information contact:

Media Relations:

Mark Jelfs

Senior Manager, Communications

Fiserv, Inc.

+1.262.737.8244

mark.jelfs@fiserv.com

Source: Fiserv, Inc.

Released November 6, 2025

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