New York City Mayor Zohran Mamdani is championing legislation that would prohibit companies like Amazon from using third-party contractors for last-mile delivery services, a move that critics argue exposes hypocrisy within his own administration. City Council Member Tiffany Cabán's proposed Delivery Protection Act, which Mamdani has pledged to sign, would mandate that companies directly employ their delivery and warehouse workers, effectively dismantling Amazon's Delivery Service Partner model in the city.
Amazon states that its network of over 40 local delivery businesses employs more than 5,000 New Yorkers. Under this model, Amazon contracts with these delivery companies, which then hire their own drivers, typically as employees rather than gig workers. Cabán's bill would terminate these contracts, potentially jeopardizing these local businesses. While Amazon would be required to offer jobs to the affected drivers, there is no guarantee they would retain the same hours, routes, benefits, or job security.
Critics point to hypocrisy in City Hall's stance, noting that Mamdani's administration has itself utilized outside companies to supply temporary staff for essential services. For example, the city renewed a contract for $8.46 million to secure 109 temporary professionals for homeless services through June 30. Additionally, an $11 million citywide trucking contract provides outside drivers and labor. In these instances, private companies employ workers who perform necessary tasks, a model identical to the one Mamdani condemns at Amazon, which he labels as exploitation when used by the e-commerce giant but refers to as procurement when utilized by the city.
Mamdani's justification for the contractor ban reportedly centers on workplace and traffic issues. However, critics argue that the evidence linking subcontracting to these problems is insufficient. The comptroller's office reported 9.2 injuries per 100 full-time-equivalent workers among Amazon delivery contractors, but this data was not compared to directly employed delivery workers, and it failed to establish a causal link between the employment model and safety. Similarly, while injury-causing crashes increased near some last-mile facilities after their opening, the study did not attribute these crashes to the facility vehicles themselves.
Amazon reports that its serious-crash rate in New York City decreased by 35.7% between 2024 and 2025 following the adoption of camera-based alerts and driver coaching by its contractors. Critics suggest Mamdani is using safety concerns as a pretext for a corporate structure change.
The proposed legislation includes stringent requirements, such as prohibiting the outsourcing of core delivery and warehouse work, imposing onerous retention and training mandates, and requiring a $500,000 bond for each delivery worker not put on the operator's payroll during the transition. The bill also offers no provisions for the entrepreneurs whose businesses could be rendered illegal. Rudy Cazares, an operator of an Amazon DSP who also contracts with FedEx and employs approximately 130 W-2 workers, faces the potential elimination of his Amazon operation.
Furthermore, the bill explicitly exempts governmental entities from its definition of "facility operator." This exemption is noteworthy given that New York City relies heavily on similar contractual arrangements to function. In fiscal year 2025, the city comptroller registered 12,500 new procurement contracts totaling $42.3 billion. In fiscal year 2024 alone, the city spent approximately $8 billion on human-service contractors, delegating core governmental responsibilities like shelter operations, mental-health services, and foster care to outside employers.
Mamdani's proposed policy could lead to increased costs for consumers, potentially by as much as $664 per household annually, according to estimates. The city-specific mandate could also incentivize delivery businesses to relocate to areas outside New York City, such as New Jersey, Long Island, or Westchester, leading to longer routes, increased vehicle miles, higher costs, and greater congestion and emissions. This outcome runs counter to the bill's environmental claims. Ultimately, the disruption could be borne by small retailers, working-class consumers, and delivery workers.
An alternative proposed by critics involves regulating misconduct directly wherever it occurs, applying consistent standards across all contracting arrangements, including those used by the city itself. They argue Mamdani should either apply his anti-subcontracting principles uniformly to government operations or refrain from selectively imposing them on external businesses.