Just a day after Amazon launched "Thank my Driver," an initiative that allowed customers to give a $5 tip to their delivery drivers, the retail giant got sued for allegedly misappropriating tips from delivery drivers years prior.
'Alexa, Thank My Driver'
In a news release from December 7, e-commerce juggernaut Amazon told its customers that they can now express gratitude to delivery personnel by sending a $5 tip via any Alexa-compatible device. Users can do this by commanding the cloud-based service to "thank my driver."
According to the news release, delivering packages quickly and conveniently helped Amazon with certain package milestones. Since opening its doors in 1994, the e-commerce company recorded 15 billion in Amazon packages delivered in the United States alone.
"And, in celebration of this new feature, with each thank-you received from customers, drivers will also receive an additional $5, at no cost to the customer," Amazon said in the statement. "We'll be doing this for the first 1 million thank-you's received."
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Amazon Suddenly Ends Program
After launching the said promotion, Amazon suddenly updated an FAQ on the "Alexa, thank my driver" program. An updated statement reads that the driver tipping program is ending after receiving an "enthusiastic response," which they said had already reached the driver limit of one million.
NPR reports that several social media users were quick to spot that the abrupt conclusion of the program came at the same time that a Washington, D.C., court filed a lawsuit against Amazon. The complaint alleges that the company stole tips from drivers and tricked customers into believing their tips went to personnel.
The lawsuit is centered on Amazon Flex, a program that was introduced in 2015 and enabled independent contractors to deliver items for Amazon using their vehicles for $18 to $25 per hour.
According to the lawsuit, Amazon engaged in various fraudulent schemes that deceived customers into believing they were raising drivers' compensation. In reality, Amazon diverted tips to lower its labor expenses and boost profits.
The company secretly modified its policies in 2016 to allocate tips toward paying the drivers' wages. Although, technically, Amazon used the money to subsidize the company's labor costs, Amazon continued to guarantee consumers and drivers that "100% of the tips" would go to drivers in promotional materials.
All of the consumer tips at issue were already given to drivers as part of a deal last year with the FTC, according to Amazon spokesperson Maria Boschetti, who told USA TODAY that the case is without merit and concerns a practice that the business discontinued three years ago.
The "Alexa, thank my driver" campaign debuted as drivers continued to deal with a spike in holiday delivery demand. It came after earlier allegations of terrible working conditions and the biggest union drive in Amazon's history.
Alexas currently do not process tipping delivery drivers. Instead, the system replies with, "currently we're not able to tip them."
