New York City Mayor Zohran Mamdani has endorsed the Delivery Protection Act, a bill that would compel companies like Amazon to directly employ thousands of delivery drivers rather than utilize subcontractors. This move intensifies a conflict with the e-commerce giant, which has cautioned that the legislation might prompt it to shift its delivery operations out of the city.
Mamdani stated that corporations construct their business models by avoiding accountability through exploitative subcontracting. He characterized the bill as common-sense regulation designed to protect delivery workers, safeguard communities surrounding last-mile facilities, and hold corporations responsible for the labor they benefit from. The Teamsters union supports the legislation.
According to a study by consultancy AKRF, the bill could increase costs for New York households by approximately $664 annually. Amazon, which partners with over 40 local Delivery Service Partners employing more than 5,000 individuals in the city, has indicated that the legislation could jeopardize these roles and lead to a reassessment of its delivery operations within the five boroughs.
"We’re committed to creating good jobs, supporting our thousands of employees and local small business partners in New York City and providing fast, reliable delivery for New Yorkers," an Amazon spokeswoman said. "But as written, this legislation would directly undermine that commitment — threatening the small businesses that deliver to customers, putting the jobs of more than 5,000 of their employees at risk and forcing us to consider relocating delivery operations outside of the city."
Opposition to the bill, organized under the coalition New York Delivers, plans to rally against the measure, arguing it threatens thousands of delivery jobs and small businesses while increasing consumer costs. The coalition estimates that up to 10,000 city delivery jobs could be at risk, including an estimated 3,500 last-mile delivery positions in Harlem and surrounding districts. The group also highlighted that a significant portion of the last-mile delivery workforce lacks a college degree and is non-white.
Rudy Cazares, a New York City-based operator of an Amazon Delivery Service Partner and a FedEx contractor, stated that the legislation would force his business to close. He employs approximately 130 people, with drivers earning starting wages of $23.75 per hour, and noted that his employees are W2 hires who receive benefits and have payroll taxes paid. Cazares pushed back on the idea that his company merely acts as an intermediary, explaining that his firm hires its own staff and operates its own vehicles, while Amazon dictates package sorting and staging. He expressed a desire for city officials to address system concerns without eliminating small businesses like his.
City officials have also voiced caution. Carlos Ortiz, deputy commissioner of external affairs for the Department of Consumer and Worker Protection, previously stated at a City Council hearing the need to avoid unintended consequences. A spokesperson for Council Speaker Julie Menin indicated that the speaker was awaiting the bill's progression through the legislative process and stakeholder input.
Matt McQuaid, a spokesperson for the Teamsters union, criticized Amazon's stance, suggesting the company prioritizes denying workers rights and wages over its responsibilities to employees. He urged journalists to expose what he called the company's anti-worker tactics rather than relaying its messaging.