Mamdani Escalates Amazon Fight, Backs Bill That Risks Price Hike For Customers As Retailer Threatens To Move NYC Operations

New York City Mayor Zohran Mamdani has endorsed the Delivery Protection Act, legislation that would require Amazon and other major delivery companies to directly employ last-mile delivery workers rather than using subcontractors.

Mamdani announced his support for the measure Monday, calling it "common-sense regulation that protects delivery workers, safeguards the communities where these facilities operate and ensures that the corporations benefiting from workers' labor are responsible for the consequences of their business practices." He stated that "corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting."

The proposal, backed by the Teamsters union, has drawn sharp criticism from business groups and Amazon itself. A study by consulting firm AKRF estimated the measure would add an average of $664 annually to household delivery expenses for New York City residents. The Business Council of New York State said the law would raise prices for consumers.

Amazon, which works with more than 40 locally owned Delivery Service Partners employing over 5,000 workers across the city, warned the legislation could force it to relocate operations beyond the five boroughs. Company spokeswoman Kelly A. Nantel said the 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."

Opponents organized a rally Monday at Thomas Jefferson Park in East Harlem. The New York Delivers coalition said the legislation could affect as many as 10,000 delivery jobs citywide, including roughly 3,500 last-mile positions in Harlem and neighboring districts.

Rudy Cazares, who operates an Amazon Delivery Service Partner business and FedEx contracting company, said the legislation would destroy his business. His company employs approximately 130 workers, with drivers earning between $23.75 and $27 per hour as W2 employees with benefits. "This direct hire mandate will eliminate every small business out there that delivers packages for any business," Cazares said.

Some city officials expressed caution. Carlos Ortiz, deputy commissioner of external affairs for the Department of Consumer and Worker Protection, said during an April City Council hearing, "We want to make sure we don't have unintended consequences."

The Teamsters rejected Amazon's arguments, with spokesman Matt McQuaid stating that "Amazon will say or do whatever it takes to deny workers stronger rights and wages and abdicate its responsibilities for its own employees, which is why journalists are obliged to expose these greedy corporate tactics and not serve as stenographers for the company's anti-worker propaganda."