New York City Bill Targets Amazon's Delivery Subcontractors

New York City is moving to force Amazon and other delivery companies to directly employ last-mile workers, cutting out the third-party subcontractors that have become central to the e-commerce giant's logistics network.

The Delivery Protection Act, introduced by City Council member Tiffany Cabán and backed by Mayor Zohran Mamdani, would create a licensing system for last-mile warehouses and distribution facilities. It would set minimum safety, training and worker protection standards while holding the company operating each facility responsible for employing the workers there.

Amazon is the main target. FedEx and UPS would also fall under the rules.

"Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting," Mamdani said. He pointed to higher rates of traffic accidents and worker injuries tied to third-party delivery operations. He called the bill "commonsense regulation" that ensures companies benefiting from workers' labor are responsible for the consequences of their business practices.

If the measure passes, it could become a template for other cities and states tightening oversight of Amazon, the second-largest private employer in the United States.

"Amazon's Delivery Service Partner model is the most dangerous business model in America today," said Teamsters General President Sean O'Brien. "The Delivery Protection Act is the blueprint for how workers can fight back against Amazon's greed."

Amazon said in April the bill would force it to consider relocating its delivery operations outside New York City. The Amazon-backed New York Delivers coalition warned the legislation would "put jobs at risk, raise costs for working families, and make it harder for small businesses – especially in the outer boroughs – to survive."

The Teamsters claimed Amazon spent over $5 million to "bankroll a dark money campaign" against the bill.

The legislation is likely headed for court, similar to another Mamdani move – the pied-à-terre tax on high-value second homes. A judge Monday temporarily blocked that tax while a lawsuit proceeds.

President Donald Trump posted on Truth Social that the pied-à-terre tax "is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return." He said he is looking into whether the federal government has "any legal right to avert this disaster, before it is too late."

Amazon shares fell 2.1% Tuesday, part of a broader market decline. The stock has an Alpha Score of 70 out of 100, a Moderate rating.