Mamdani's regulation that 'angered' Amazon may impose an extra $664 per year fee
Mayor Zohran Mamdani backs a bill requiring delivery firms to directly employ drivers. This legislation faces opposition from companies like Amazon, which warns of job losses. Critics argue the direct-hire mandate will eliminate small businesses and raise consumer prices. Separately, Mamdani issued notices to retailers over illegal e-bike sales. The city aims to enhance public safety by…
New York City Mayor Zohran Mamdani has expressed support for the Delivery Protection Act, an initiative aiming to compel delivery giants like Amazon to directly employ thousands of drivers rather than subcontracting such work, according to a New York Post report. The mayor referred to the proposal as a 'common-sense regulation' intended to protect workers, maintain community welfare, and hold corporations accountable for their operations.
While Mamdani believes the bill enhances worker protections, a study by consultancy AKRF predicts that the legislation could increase household delivery costs by $664 annually in New York. Critics argue that the direct-hire mandate would eliminate small businesses currently operating as Amazon Delivery Service Partners, which could potentially result in job losses for thousands of individuals and elevate consumer prices.
Amazon has voiced concerns over the Delivery Protection Act, warning that the legislation could force the company to relocate its operations outside New York. An Amazon spokeswoman, Kelly A. Nantel, stated that the proposed legislation would undermine their commitment, put jobs at risk, and prompt the company to consider changing its delivery methods.
The New York Delivers coalition, consisting of delivery workers and small-business owners, has staged a press conference in East Harlem to oppose the bill. The group argues that the legislation threatens up to 10,000 delivery jobs citywide. Operators such as Rudy Cazares, who manages an Amazon partner business employing 130 drivers, stated that the law would shut down his company. Cazares told The Post that the direct hire mandate would eliminate every small business involved in package delivery.
City officials have advised caution, warning of potential unintended consequences. Council Speaker Julie Menin has expressed her intention to wait for the legislative process to unfold before taking a stance. Meanwhile, the Teamsters union believes the bill is crucial to curb exploitative subcontracting and bolster worker rights.
Mayor Mamdani has also sent cease-and-desist notices to 42 online retailers, including Amazon, Walmart, Target, Wayfair, and Temu parent PDD Holdings, over the sale of potentially dangerous high-speed e-bikes and e-scooters. The mayor emphasized that public safety is not for sale, following a recent crash involving an illegal e-bike that resulted in the death of a 17-year-old.
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