‘Delivery Protection Act' Pits NYC Mayor Mamdani And The Teamsters Against Amazon

A coalition including Amazon Teamsters, the Alliance for a Greater New York, and the Retail, Wholesale and Department Store Union is advocating for the passage of the “Delivery Protection Act” in New York City. This legislation, backed by Mayor Zohran Mamdani, would require companies like Amazon to directly employ all last-mile delivery drivers within the city, rather than using subcontractors.

The Delivery Protection Act aims to prohibit logistics companies such as Amazon and FedEx from utilizing third-party contractors for last-mile deliveries and core warehouse services across all five New York City boroughs. The bill has garnered support from the New York City Central Labor Council and a majority of city council members. Opposition comes from a coalition of businesses including Amazon, FedEx, logistics firms, various chambers of commerce, and industry associations. A study commissioned by the Five Boroughs Jobs Campaign estimates the Act could increase annual delivery costs for New York households by $664 and jeopardize over 10,000 city jobs.

Mayor Mamdani has labeled Amazon’s contractor model as exploitative and a risk to city workers, drivers, and pedestrians, urging the passage of the Act. The bill, first introduced last September, requires a license for last-mile facilities and mandates that delivery and warehouse hubs operate with directly employed staff. Supporters argue that Amazon's third-party model leads to underpayment of workers, unsafe conditions, and a lack of accountability.

Amazon contends that the Delivery Protection Act would negatively affect over 40 Delivery Service Providers (DSPs) and threaten more than 5,000 jobs. The company states that DSP drivers earn an average of nearly $24 per hour, with full-time drivers receiving benefits exceeding city minimums, including healthcare and paid time off. Amazon also highlighted its investments in safety initiatives, training programs, and eco-friendly delivery vehicles. However, Amazon warned that if the Act passes, it might be forced to relocate its 10 New York City distribution centers, potentially leading to slower delivery times.