Amazon is currently in a dispute with the New York City Council regarding a new legislation that could mandate the retail giant to hire thousands of delivery workers across the city. According to reports, this bill might lead to an increase in customers’ annual expenses by several hundred dollars.
Dubbed the Delivery Protection Act, this proposal was reintroduced by Councilwoman Tiffany Caban from Queens and is set for its inaugural public hearing on Thursday at City Hall. If enacted, it could fundamentally alter Amazon’s delivery system, which presently depends on over 40 subcontractors employing around 5,000 people to operate Amazon-branded vans and e-bikes throughout New York.
An industry insider, closely associated with Amazon’s logistics, remarked, “This bill could shake the shipping industry to its core.”
A study on the economic impact of the bill, which was assessed by reports, suggests that if passed, Amazon might decide to relocate about ten fulfillment centers from the city to nearby areas in New Jersey, Long Island, and Westchester. Such a move would not only delay deliveries but could also escalate delivery costs for New York City residents, potentially adding an estimated $664 annually to household expenses, as detailed in a draft by consulting firm AKRF.
“There are concerns from carriers regarding on-time delivery performance,” the study noted. “Customers may find that their orders take longer to arrive, and meeting tight delivery timelines, such as overnight or same-day services, might become problematic in various regions.”
This study was commissioned by the Five Borough Jobs Campaign, an organization representing chambers of commerce and various economic development entities.
The bill mandates that last-mile distribution centers obtain city licenses and directly hire delivery staff, with provisions to shut down any facility that breaches these rules.
In Amazon’s first official response, spokesperson Kelly Nantel shared with reporters that the legislation might compel the company to reconsider its delivery operations, possibly moving them out of the city.
“We are dedicated to creating quality jobs, supporting many New York City employees and local businesses, while also ensuring prompt and affordable shipping in a secure working atmosphere,” Nantel stated.
She added, “The current version of this legislation hampers that commitment, jeopardizing the jobs of over 5,000 workers and the more than 40 delivery service partners we collaborate with daily in New York City.”
The Teamsters union supports the bill, having long sought to organize Amazon’s warehouse workers, although they have not finalized an agreement with the company yet.
Union spokesperson Matt McQuaid claimed that the licensing stipulations would apply to warehouses even outside the city as long as they provide last-mile delivery services into New York.
Supporters and opponents of the bill are expected to gather outside City Hall on Thursday. Meanwhile, Mayor Zoran Mamdani and City Council President Julie Menin have yet to comment on the legislation, although both have criticized food delivery applications in the past.
The mayor’s office has not released any statements regarding the matter. A spokesperson for Menin mentioned that he is awaiting input from stakeholders as the bill progresses through the legislative process.
“This is a complex issue, and it will require significant effort,” noted City Councilwoman Gail Brewer from the Upper West Side, a co-sponsor of the bill. “It won’t be resolved quickly.”
A new coalition named New York Delivers has formed, consisting of local business owners who deliver for Amazon along with the city’s Chamber of Commerce. They argue that the bill isn’t solely aimed at Amazon.
Other companies, including FedEx, DHL, FreshDirect, DoorDash, and numerous other logistics services could also face the need to apply for city licenses or risk being pushed out of the market, according to a coalition representative.
A DoorDash representative stated that the company is preparing to provide testimony during Thursday’s hearing.
The Teamsters contend that the legislation will create essential worker protections, training opportunities, and ensure that Amazon’s vehicles used by its delivery service providers are well-maintained.
“Amazon seeks to evade liability” in the event of a driver’s accident, McQuaid explained.
According to a report last year from the New York City Comptroller’s Office, incidents resulting in personal injuries close to last-mile facilities are projected to rise by 16% in 2024, with truck-related accidents surging by 146%. Additionally, injuries reported by Amazon’s delivery service program were found to be higher than those for other delivery firms.
Some logistics companies partnered with Amazon argue that their workers earn competitive wages, receive comprehensive healthcare, and are trained in safety procedures.
“We’re not engaged in night operations,” stated COPR Industries owner Juan Martinez, whose company employs over 100 Amazon delivery drivers making $20.50 an hour for riding electric bikes and $23.75 for driving vans around Brooklyn.
Owner Chris Bassmaggie of DashWave Delivery, which operates in Manhattan and employs nearly 150 drivers, expressed that they would likely go out of business if the licensing requirements are enforced.
“There’s a lot of misunderstanding regarding our operations and our identity,” Bassmaggie stated.
The law would impact all businesses delivering in the city; however, there are exceptions outlined by McQuaid, notably for retailers that directly deliver to consumers from their locations, such as florists and restaurants.
