Study finds spike in delivery app drivers, Amazon workers receiving federal benefits
A US Government Accountability Office study found a sharp rise in Amazon employees and app-based delivery and ride-hailing drivers receiving Medicaid or food assistance. The findings matter because they highlight how many people in major, growing sectors still rely on public support despite being in work, fuelling debate over pay, job security and employer-provided benefits.
Amazon workers receiving aid nearly tripled between February 2020 and September 2025, while delivery and ride-hailing platforms became the largest employer category for food-stamp recipients and among the top three for Medicaid recipients. The study used data from 11 states; nationally, 13.8 million working adults were enrolled in Medicaid and 10.6 million lived in households receiving SNAP in 2024, with roughly two-thirds working full-time. Amazon said raw figures reflected its large workforce and part-time roles, while the app industry said flexible work can help people manage income shocks.
In short
- Amazon workers receiving aid nearly tripled since 2020.
- Gig platforms now lead food-stamp employment categories.
- Millions of working Americans still rely on federal support.
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The case for
Those concerned about this trend argue that major, profitable corporations bear responsibility for paying wages sufficient that workers need not rely on public assistance to afford food or healthcare. When employment at Amazon or app-based platforms tripled in federal benefit participation over five years, this suggests declining living standards despite economic growth. They contend that taxpayers are effectively subsidising these companies' labour costs, allowing them to maintain profit margins whilst shifting essential support burdens to the state—a form of corporate cost-externalisation inconsistent with corporate citizenship and fair distribution of economic gains.
The case against
Defenders of current practices contend that this data reflects inevitable characteristics of modern labour markets rather than inadequate compensation. Large employers naturally host large numbers of part-time, entry-level and flexible workers, which tend toward lower wages by definition. App-based platforms deliberately offer flexibility valuable to workers managing multiple income sources or irregular needs. Rising benefit participation correlates with broader inflation and cost-of-living pressures affecting all workers. These positions provide income opportunity where traditional employers offer none, and benefit access for working people represents society choosing to ensure adequacy, not evidence of employer failure.
Explained simply
Growing numbers of working Americans rely on government welfare programmes, particularly in emerging sectors like app-based delivery and ride-hailing. A new study examined how widespread this pattern is, focusing specifically on workers at Amazon and in the gig economy.
The programmes involved are Medicaid, a government-funded health insurance scheme for lower-income people, and food assistance for those struggling to cover costs. The study found Amazon workers receiving these benefits nearly tripled between early 2020 and mid-2025, whilst delivery and ride-hailing platforms have become the largest employer category for food-assistance recipients.
The findings matter because they fuel discussion about pay levels, job security and whether employers should provide benefits rather than workers depending on government support. Millions of working Americans currently rely on these programmes, indicating widespread concerns about wages and job quality across the economy.
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