Mayor Zohran Mamdani backs the Delivery Protection Act, which would license NYC warehouse operators and target Amazon's contractor-based last-mile delivery model.
Mayor Zohran Mamdani threw his weight behind a new bill that would tighten licensing rules for warehouse operators in New York City, targeting a practice Amazon and other retailers rely on to keep last-mile delivery costs low.
The Delivery Protection Act, introduced by City Council Member Tiffany L. Cabán, would require companies running so-called last-mile distribution facilities – the warehouses where subcontractors collect packages before dropping them at customers' doors – to obtain a license from the city's Department of Consumer and Worker Protection. That license would give the city authority to enforce safety, training, and fair-work rules at those sites.
Amazon frequently subcontracts its final delivery leg to third-party firms known as Delivery Service Partners. Those drivers work as contractors, not employees, so they lack minimum-wage guarantees, health benefits, and traditional employment protections. The companies can set schedules and work requirements, but workers often supply their own equipment – bikes, trucks, or other vehicles.
"If Amazon is delivering your packages, they should follow the same rules as any other delivery company," Mamdani said in an endorsement video Monday.
Amazon pushed back the same day. Kelly Nantel, a company spokesperson, told Business Insider that the legislation as written could force Amazon to move delivery operations outside the city. "As written, this legislation would directly undermine that commitment – threatening the small businesses that deliver to customers, putting the jobs of more than 5,000 of their employees at risk," she said.
The New York Delivers Coalition, which represents 50 small businesses, also sent a letter to the City Council on Monday opposing the bill. The group urged lawmakers to weigh the effect on family-owned delivery firms.
Cabán framed the bill differently. "It will keep workers and our streets safe and end the charade of huge corporations hiding behind third-party contractors to evade accountability," she told Business Insider.
The NYC Comptroller's Office reported that last-mile package-distribution facilities expanded rapidly across the five boroughs, with 18 opening between 2017 and 2025. The facilities are the pickup points where subcontractors collect packages for delivery.
Mamdani's office said the bill aims to stop what they call "reckless conditions on city streets" linked to weak oversight of subcontractors.
The announcement comes days after New Jersey's attorney general sued Amazon under federal antitrust law, accusing the company of using its market power to hold down delivery pay.
Cabán's bill is under review by the City Council following a hearing last spring. A floor vote has not been scheduled.
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