Amazon has issued a warning regarding a proposed New York City delivery mandate, stating that the policy could increase annual costs for city households by $664 if enacted. The legislation, known as the Delivery Protection Act (Intro 0518), is backed by Mayor Zohran Mamdani and introduced by City Councilmember Tiffany Cabán. It seeks to ban large shipping companies, including Amazon, from using third-party contractors for last-mile deliveries, instead requiring direct employment of workers performing core delivery services and restricting subcontracting for such work [1].
Amazon cited an analysis by consulting firm AKRF, commissioned by the Five Borough Jobs Campaign, which projects that the legislation could drive up delivery costs by forcing facilities farther from customers. This would result in a 267% cost increase per package for deliveries currently handled by NYC facilities, service-level declines of 10 to 21%, and an additional $664 in annual delivery costs passed through to every New York City household [1].
The company also warned that more than 40 delivery service partners and their 5,000-plus employees are at risk due to the bill, which could lead to slower and more expensive deliveries for millions of New York City customers. Amazon emphasized its commitment to working collaboratively with city officials and supporting both its employees and local small business partners, while opposing the bill as written [1].
Proponents of the bill, including Mayor Mamdani’s office, argue that the current subcontracting system allows corporations to avoid accountability for working conditions and leaves workers vulnerable. They claim that corporations dictate hiring standards, delivery routes, and productivity quotas while denying employment status to delivery workers [1].
CONCLUSION
Amazon's opposition to the proposed NYC delivery mandate centers on projected significant cost increases for consumers and potential job losses among delivery service partners. The debate highlights a clash between efforts to improve worker protections and concerns over higher costs and reduced service levels for city residents.