New York City Mayor Zohran Mamdani has thrown his support behind a contested proposal that would change how Amazon and other large companies handle last-mile deliveries in the city. The measure would require operators of delivery facilities to hire workers directly rather than relying on subcontracted companies.
Mamdani said Monday he backed the Delivery Protection Act, an initiative supported by the Teamsters union that would bar companies from subcontracting certain warehouse and delivery tasks and would require direct hiring of workers. In a statement posted on the New York City government website, Mamdani said corporations like Amazon build multibillion-dollar business models by shielding themselves from responsibility through an exploitative subcontracting system.
Mamdani also called the proposal a common sense measure that he said would protect delivery workers and the communities where these facilities operate, while forcing companies to bear the consequences of their business practices.
Opponents argue the change could raise delivery costs for consumers. A study by consulting firm AKRF, cited by the New York Post, estimates the measure could add $664 a year for New York households in buying and receiving products.
Amazon warns on jobs and delivery costs
Amazon currently works with more than 40 local delivery service partners employing more than 5,000 people in the city. Months ago, the company warned the legislation could lead it to consider moving its delivery operations outside the five boroughs.
Amazon spokesperson Kelly A. Nantel told the New York Post the company was committed to creating good jobs and supporting its thousands of employees and local small business partners in New York City while offering fast, reliable deliveries for New Yorkers. Nantel added that as written, the legislation would directly undermine that commitment, threatening the small businesses that deliver to customers, putting more than 5,000 of their employees' jobs at risk, and forcing Amazon to consider moving delivery operations out of the city.
Business owners also reject the measure
Opposition to the bill also includes workers and small business owners. The New York Delivers coalition says the proposal, known as Intro 518, could put up to 10,000 delivery-related jobs at risk, including about 3,500 last-mile positions in Harlem and four nearby boroughs.
Rudy Cazares, a New York-born business owner who operates an Amazon delivery service partner and also works as a FedEx contractor, said the measure could end his business. He said he would have to close his business, that he would have no business left.
Cazares said he currently employs about 130 people and increases his staff during high-demand periods such as the year-end holidays. He said his drivers start at $23.75 an hour, with more experienced workers earning around $27 an hour.
Cazares said all of his employees are W2 workers, whether full time or part time, with benefits and payroll taxes paid. He also rejected the idea that companies like his simply act as intermediaries between Amazon and delivery drivers, saying they hire their own employees and operate their own vehicles.
The dispute now pits advocates for greater labor protection against Amazon, business owners and other sectors warning about the economic consequences of eliminating the current subcontracting system.
As the bill moves through the City Council, some officials have also urged caution to avoid unintended effects. Carlos Ortiz, deputy commissioner for external affairs at the Department of Consumer and Worker Protection, said during an April Council hearing that they wanted to make sure there were no unintended consequences.
