Crashes and Accidents with Amazon Delivery Vehicle Accidents
While it might seem obvious when a collision involves an Amazon delivery vehicle, you may be surprised who owns it. Don’t be fooled by the markings. Many crash victims and their families, attempting to pursue legal action against an Amazon, learn that the e-commerce giant doesn’t own the vehicle at all, making it much tougher to sue the company.
Amazon, like other e-commerce companies, has created a way to evade responsibility for motor vehicle crashes by creating a Delivery Service Partner (DSP) program. Amazon considers these DSP vehicles as ‘independent contractors’ in attempt to avoid lawsuits. This is a similar tactic used by Lyft and Uber for years.
In New York, the legal doctrine of respondeat superior holds an employer accountable for the negligent actions of an employee, if those actions fall within the scope of his or her employment. This means that if Amazon employed its drivers directly, the company would likely be held liable for any motor vehicle crashes caused by their drivers. New York State Vehicle and Traffic Law also makes the owners of vehicles vicariously liable for the acts of a driver. The way Amazon handles most of its deliveries between its distribution centers and your door, by relying on a network of contractors, is an attempt to break this connection.
These contractors include:
- Amazon Flex drivers: These operate much like Uber or Lyft drivers, working with a smartphone app to alert them of delivery opportunities and schedule “blocks” of time to deliver packages on an as-needed basis. They drive their own vehicles, maintain their own insurance, and—while many opt to wear Amazon-branded vests—have some freedom to choose how they dress during a delivery. Amazon Relay is a similar program used by freight, rather than delivery drivers.
- Amazon Hub Delivery partners: existing small businesses who contract with Amazon to make a certain number of local deliveries per day. The program is largely meant to serve rural communities, which may be less accessible to Flex drivers and Delivery Service Partners.
- Delivery Service Partners (DSPs): companies that are not owned by Amazon, but that exclusively handle Amazon deliveries. Delivery Service Partners work under very intense Amazon specifications to maintain their contracts with the company. These specifications include wearing Amazon-branded uniforms and driving Amazon-branded delivery vehicles, which are leased to them by third-party companies. Amazon Freight Partners are similar businesses that move cargo rather than deliver packages directly to customers.
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Drivers directly employed by Amazon do exist, although they are few and far between. Many are hired on a seasonal basis—for example, during the holiday rush, when Amazon may have more deliveries than its contractors can handle—and are let go after weeks or months of work.
Companies, large and small, contract with outside partners for the purpose of as deliveries. As such, Amazon’s connection to its DSPs may seem like a typical business partnership. To understand the true nature of the relationship, you need to understand how a DSP is founded. Amazon does not look for existing delivery companies with which to forge Delivery Service Partner contracts. Rather, Amazon provides the conditions under which would-be Amazon contractors may start their own LLC businesses, designed for the special purpose of contracting with Amazon as DSPs. These LLCs are required to have generic names (i.e. “Highway Logistics”) with no reference to Amazon, helping to foster the illusion that they are independent delivery companies. Every DSP is created to meet Amazon guidelines. Amazon’s role in setting up the DSP, payroll, insurance coverage, and hiring, to finding a third-party company from which it can lease its branded vehicles—is a selling point for entrepreneurs without extensive logistics experience. Amazon’s influence on DSPs doesn’t stop at dictating how they’re founded: once a DSP is created, Amazon begins to exercise tight control, not only of the DSP itself, but of each individual driver. This includes requiring drivers to maintain certain personal grooming standards and route assignment. Routes are calculated by algorithm to theoretically accomplish the most deliveries possible in the least amount of time. DSP drivers are not permitted to deviate from an assigned route. The vehicles are equipped, inside and out, with a camera system that not only tracks the movement of the vehicle.
As you can see, Delivery Service Partners are not “partners” of Amazon as we typically understand the word—independent companies operating in a business agreement with another company. They exist only because of Amazon, their functions and employees are governed by Amazon, and Amazon is the only business with which they contract.
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Nevertheless, if you are in an crash or accident involving an Amazon DSP driver or similar Amazon contractor, such as an Amazon Freight Partner, Amazon may claim not to be responsible, placing full responsibility—that is, liability—with the driver’s employer. DSP vehicles are required to carry $1,000,000, which is not insignificant. However, in some cases involving severe traumatic injuries or death, this would fully compensate a victim or their surviving family.
The case law around crashes that involve Amazon contracting “partners” is still evolving. To date, arguments to bring direct claims against Amazon include the the obvious allegation of an agency relationship. Meaning the DSP is a legal “agent” of Amazon and such, Amazon remains vicariously liable. Similarly to arguments raised in Uber and Lyft litigation, another legal theory is that Amazon highly dictates the routes and method of delivery and puts pressure on the drivers to meet certain deadlines. Such argument shows a level of control Amazon asserts over its DSP’s to void any arguments of the DSP being an “independent” entity from Amazon.
The claims against these entities are complicated. If you or a loved one was injured by a vehicle associated with Amazon or other delivery companies such as Fed Ex or UPS, we can help. Early investigation is key to finding the right parties responsible for a crash.
Involved in an Accident with an Amazon, Fed Ex, or UPS vehicle? We know New York’s unique laws as they pertain to these vehicles and have a proven record of winning these cases. Call us today at (888) 290-5994 or contact us online for help.
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