Mamdani Backs Delivery Bill as Amazon Warns of Job Losses and Higher Costs

Mayor Zohran Mamdani is supporting a City Council proposal requiring Amazon and other large delivery operators to directly employ workers who handle last-mile deliveries, setting him apart from Amazon and businesses dependent on its delivery network.

The Delivery Protection Act would restrict subcontracting for key warehouse and delivery operations, mandating covered companies place those workers on their own payrolls. Mamdani said the proposal would provide delivery workers greater protections and make major corporations more accountable for their operations' conditions.

Amazon has cautioned that the legislation could significantly alter its New York delivery network and prompt the company to relocate some operations outside the city. The company warns this could endanger thousands of jobs at local delivery businesses and slow deliveries while raising costs for New Yorkers.

Amazon currently partners with dozens of independent Delivery Service Partners in the city, collectively employing over 5,000 people. The company contends these businesses could face difficulties under a direct-hiring requirement.

An economic analysis cited by opponents estimated the legislation could add hundreds of dollars annually to average New York household delivery costs, though this estimate is disputed and would depend on corporate responses.

Rudy Cazares, who operates an Amazon delivery company and works as a FedEx contractor, said the proposed rules could force him to close his business, which employs about 130 workers and provides full- and part-time jobs with benefits.

The Teamsters and other legislation supporters argue delivery companies should directly bear responsibility for workers performing essential business functions rather than using multiple subcontracting layers.

The New York Delivers coalition, opposing the bill, planned a demonstration featuring delivery workers and small-business owners claiming the measure threatens their jobs. The coalition estimates up to 10,000 delivery positions could be affected.

City officials have said lawmakers should examine possible unintended consequences before passage, as the City Council continues deliberating the legislation.