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Amazon will tip delivery drivers this holiday season — but there’s a catch

Yahoo Finance Live anchors discuss Amazon rolling out a new tip incentive program when customers thank delivery drivers via Alexa.

Video transcript

[AUDIO LOGO]

JULIE HYMAN: Amazon is tipping drivers this holiday season but there's a catch. Customers have to thank the drivers via Alexa and then the driver will get a $5.00 tip from Amazon. The driver with the most thank you's does get a bonus of $10,000.

But to me, there are some issues with this. A, letting people know that it's happening so that you thank your driver. And B, that you have to have Alexa to thank-- like my devices are not Alexa-enabled. You can-- there's an option where you can go in the app, and you duh, duh. But like, just pay your people more.

BRIAN SOZZI: I mean, it's a nice incentive. No? I mean, look, deliver more packages, get $10,000. It's pretty good, nice, little contest in the holiday season.

JULIE HYMAN: Is about deliver-- it's not about delivering more packages, necessarily.

BRIAN SOZZI: Well, deliver a good package. You know, put it nicely, neat on the steps. Get a compliment, get a tip, and make some extra money.

BRAD SMITH: Is the $10,000 net or gross because--

BRIAN SOZZI: [LAUGHS] It's an Amex gift card. No [LAUGHS]

JULIE HYMAN: It's an Amazon gift card!

BRIAN SOZZI: It's an Amazon gift card.

JULIE HYMAN: Of course, is what it is.

BRAD SMITH: Which is exactly what you want as a driver at the end of the day.

BRIAN SOZZI: Alexa, order me one those beer cheese pizzas from Casey's.

BRAD SMITH: [LAUGHS]

JULIE HYMAN: Oh my gosh. And I don't know, I just feel like if you're going to give your people bonuses, give them bonuses.

BRIAN SOZZI: Yeah.

JULIE HYMAN: If you want it to be merit based, like I just feel like the Alexa function--

BRAD SMITH: Instead of putting it on the customer at the end of the day.

BRIAN SOZZI: I'd give you a bonus if I could, Julie. And you, too, Brad.

JULIE HYMAN: I do appreciate that.

BRAD SMITH: Thanks.

JULIE HYMAN: Thank you--

BRAD SMITH: Same.

JULIE HYMAN: --very much.