Amazon faces New York delivery worker overhaul
Amazon is facing a direct challenge to its delivery model in New York City after Mayor Zohran Mamdani threw his support behind legislation that would require operators of last-mile facilities to employ delivery and warehouse workers directly rather than relying on networks of subcontractors. The Delivery Protection Act, sponsored by City Council member Tiffany L. Cabán, would impose a licensing…
The New York City mayor has endorsed legislation aimed at transforming Amazon's delivery operations. The Delivery Protection Act, proposed by Council member Tiffany L. Cabán, would require last-mile facilities to directly employ workers instead of using subcontractors. This would introduce safety, training, and employment standards, along with stronger enforcement powers for authorities.
Currently, Amazon relies on over 40 Delivery Service Partners (DSPs) in the city, which employ more than 5,000 people. Amazon contends that the proposed changes could lead to relocating delivery facilities outside NYC, raising costs and slowing deliveries. The legislation mandates licensing for each last-mile facility, with an annual fee of $500 and a two-year term.
Violations of safety and labor laws would require disclosure by operators. Mamdani's support heightens the political stakes for Amazon, which argues that the current model enables workers to choose among local employers. Opponents worry that increased operating costs might be passed on to consumers, potentially raising annual household delivery expenses by hundreds of dollars.
The Teamsters, unionizing Amazon workers and delivery drivers, supports the bill, arguing that direct employment would hinder large delivery companies from terminating contractors or reorganizing their networks.
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