New York City Targets Amazon's Delivery Practices with Controversial Bill

New York City is taking aim at Amazon's delivery practices with a bill that would require companies to directly employ last-mile workers instead of relying on third-party subcontractors.

The Delivery Protection Act, introduced by New York City Council member Tiffany Cabán and backed by Mayor Zohran Mamdani, creates a licensing system for certain last-mile warehouses and distribution facilities, sets minimum safety, training, and worker protection standards, and holds the company operating the facility responsible for employing the workers.

The bill targets Amazon, but also affects firms like FedEx (FDX) and UPS (UPS). Mamdani stated that corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting.

Amazon has warned that the measure would force it to consider relocating its delivery operations outside New York City. The Amazon-backed New York Delivers coalition claimed that the legislation would put jobs at risk, raise costs for working families, and make it harder for small businesses to survive.