New York City is considering legislation that could lead to slower and more expensive package deliveries for residents. The proposed "Delivery Protection Act" seeks to overhaul how companies like Amazon, FedEx, and Walmart handle the final stage of shipping, known as last-mile delivery.
Currently, many large e-commerce companies utilize third-party contractors, such as Delivery Service Partners (DSPs), for last-mile services. This means drivers often seen in company-branded trucks are not direct employees of the shipping giants. The proposed law would ban companies from outsourcing these final delivery contracts, requiring them to directly employ drivers delivering packages within the city.
Under the proposed legislation, companies would also need to obtain New York City licenses for their last-mile package holding warehouses. Furthermore, drivers would be subject to new safety rules and working condition standards. Proponents of the bill, including Mayor Mamdani, argue that it is a necessary measure to curb the influence of large delivery corporations and enhance street safety for workers, drivers, and pedestrians.
"This common sense legislation will rein in the power of corporate delivery giants like Amazon, hold them accountable for their exploitative business model and make New York City’s streets safer for workers, drivers and pedestrians," Mamdani stated, referencing studies that indicate an increase in injury-causing crashes following the establishment of last-mile delivery facilities.
However, opponents express concerns that these changes could indeed result in longer delivery times and increased shipping costs, which would likely be passed on to consumers. The bill is currently in its preliminary stages with the Committee on Consumer and Worker Protection, and its timeline for potential passage into law remains unclear.