Amazon delivery partners push back against surprise repair bills - WSJ

Amazon delivery partners push back against surprise repair bills - WSJ

Amazon.com Inc. is facing backlash from its delivery service partners (DSPs) over exorbitant repair bills for their delivery vans. According to multiple contract firms, repair costs have skyrocketed, with some bills reaching $20,000 or more. These costs are proving to be a significant financial burden for many small businesses that lease vans from Amazon [1].

The issue began this year when Amazon expanded its delivery network during the pandemic, leading to increased usage of the vans. Many of these vans are now aging and require frequent repairs. Amazon has been calling these vehicles back for repairs, with costs for damages beyond normal wear and tear billed to the firms. Some DSPs have been canceling permissions for leasing companies to withdraw funds from their accounts to protect against overcharging [1].

Amazon has acknowledged erroneous charges such as for removing van decals and a $569 “VIN fee.” However, DSPs have reported being billed more than 10 times what the Pave app estimated the cost of repairs to be. One delivery partner in Washington was told it would cost over $100,000 to fix several vans, which had already been repaired for around $10,000 using the app [1].

In response to the outcry, Amazon has paused its plan to redistribute its fleet of delivery vans. The company has committed to investigating the billing complaints and has temporarily halted vehicle pickups for repairs. An Amazon official stated that the company would provide a 20% discount on repair costs for DSPs and would not resume any additional vehicle pickups until next year [2].

The high repair costs have threatened the profitability of many DSPs, with some owners choosing to close down or declare bankruptcy. Amazon has acknowledged issues with the app's estimates and has committed to correcting these errors and issuing reimbursements where appropriate [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-03/amazon-faces-backlash-for-sky-high-delivery-van-repair-bills
[2] https://www.wsj.com/tech/amazon-pauses-delivery-fleet-redeployments-after-outcry-over-repair-costs-ffa1a791