New York City Mayor Zohran Mamdani has announced his support for the Delivery Protection Act, a bill that could compel Amazon and other major delivery companies to directly employ thousands of drivers instead of utilizing independent contractors. The legislation, sponsored by City Council member Tiffany Cabán and backed by the Teamsters union, would prohibit subcontracting for warehouse and last-mile delivery work, requiring that workers be directly employed by the facility operator.
Mamdani stated that the bill targets business models that "insulate themselves from accountability through a system of exploitative subcontracting." He described the measure as "common-sense regulation" designed to protect delivery workers and communities while holding corporations responsible for their operational practices.
However, Amazon and other critics argue that the bill could significantly impact jobs and delivery expenses within the city. Amazon indicated it partners with over 40 local small businesses that employ more than 5,000 individuals for deliveries in New York City, warning that the proposed legislation might jeopardize these jobs and disrupt its delivery network. Analysis cited by the New York Post suggests that the measure could lead to an average annual increase of $664 in delivery costs for New York City households.
The bill is currently before the City Council, potentially setting up a significant debate between Mamdani's administration, Amazon, and the network of small businesses involved in its delivery operations. The opposition, organized as the New York Delivers coalition, is campaigning against the bill, estimating that Intro 518 could put up to 10,000 delivery jobs at risk across the city. The coalition also highlighted that 82 percent of the city's last-mile delivery workforce lacks a college degree and 84 percent is non-white, suggesting the legislation could disproportionately affect these workers.
This legislative effort follows other initiatives by Mamdani aimed at improving conditions for delivery workers. He has also been advocating for a law that would make tipping options on delivery apps more prominent, a measure initially passed by the City Council but not signed by his predecessor. The city's Department of Consumer and Worker Protection had previously accused platforms like Uber Eats and DoorDash of using obscured tip buttons and defaulting gratuities to 10 percent, a practice Mamdani claimed reduced worker tips by 79 percent. He asserted that these new rules have helped return $104 million to delivery workers' pockets in the first six months of their implementation.
Despite these efforts, Mamdani has faced criticism regarding the potential impact on affordability. Critics question how his push for increased compensation for delivery workers aligns with his affordability agenda, raising concerns that higher labor costs could be passed on to consumers. Officials from the Department of Consumer and Worker Protection have also urged caution, noting the potential for "unintended consequences" from such measures, as stated by Deputy Commissioner Carlos Ortiz during an April City Council hearing.