In early August, Mayor Mamdani endorsed the Delivery Worker Protection Bill. This legislation would require warehouse operators like Amazon to obtain city licenses and meet new standards for safety, training, and employment. The bill also mandates that Amazon directly employ drivers currently working for small companies specializing in deliveries for the corporation.
Mayor Mamdani asserts that the new regulations will enhance protection for delivery workers and hold businesses accountable for their operations.
Amazon does not directly contract with drivers. Instead, it hires external small businesses, known as Delivery Service Partners (DSPs), to establish their fleets and recruit drivers. Legally, drivers are employees of the DSP companies, even if they wear Amazon-branded uniforms, drive Amazon delivery vehicles, and collect packages from Amazon warehouses.
"We are working to reduce living costs while focusing on helping workers keep more money in their pockets," said Julie Su, New York deputy mayor for economic equity.
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New York mayor Zohran Mamdani speaks during a press conference in New York, US, on 1/9. *Photo: Reuters* |
Amazon, however, argues that the bill could threaten more than 5,000 delivery jobs and place significant pressure on the small businesses that transport goods for the company. Amazon also warns it might consider relocating its warehouses from New York if the bill passes.
Patrick Penfield, a professor specializing in supply chains at Syracuse University, believes the Delivery Worker Protection Act will increase Amazon's costs.
"Their last-mile delivery model relies on third-party contractors, and that is how they can maintain low delivery costs in New York," he stated.
According to a study by consulting firm AKRF, funded by the anti-bill organization Five Borough Jobs Campaign, each New York household could incur an additional 664 USD in costs annually if the new regulation is approved.
Jose Huerta, a driver working for a delivery partner at Amazon's DBK1 facility in Queens, stated he earns 23.75 USD per hour, works four days a week, and delivers approximately 250-290 packages daily.
As a Teamsters union member, Huerta supports the bill, partly believing that drivers would be in a better position to negotiate terms and benefits with a more direct employment relationship with Amazon.
Conversely, some delivery business owners collaborating with Amazon warn that the bill could threaten the existence of small companies.
"The bill strips small businesses, family-owned companies, of their ability to operate," said Kris Basmagy, owner and founder of DashWave Delivery, a shipping company. "Essentially, this bill consolidates all hiring power in the city into the hands of large corporations."
The Delivery Worker Protection Bill is not the first cause of conflict between Amazon and progressive politicians in New York. In 2019, Amazon abandoned plans for a 2.5 billion USD headquarters in the city after facing political opposition related to project incentives.
Mayor Mamdani also announced that the city collected over 9 million USD in fines from Amazon delivery vehicles for not turning off engines when stopped. The New York mayor has also demanded that some online retailers, including Amazon, stop selling certain electric bicycles that the city deems non-compliant.
Amazon states that electric bicycles sold on its platform meet current safety standards and that it has coordinated with city authorities to address fines related to idling vehicles.
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Amazon packages on a New York City sidewalk on 25/7/2019. *Photo: Reuters* |
Political consultant Hank Sheinkopf noted that progressive politicians "targeting Amazon" is not new, but Mayor Mamdani's actions against the corporation also reflect political ambition.
"What better way to kick off phase two of a reform campaign than to confront one of the world's most prominent delivery corporations?" Sheinkopf asked.
Mayor Mamdani secured a historic victory in the New York mayoral election with an anti-elite platform championing workers' rights. During his campaign, he advocated for rent control, free bus services, opening city-owned food stores, and proposed tax increases for the wealthy and corporations.
"It's a smart move because he is already a national figure and has significant ambitions," Sheinkopf added.

