RESOLVING THE LEDGER
This is one outlet's own report from Business Insider — the article as it was filed. Other outlets are covering the same event; open the full story to compare every source side by side.
See the full story · 1 sourcesMamdani is backing a bill he says will improve working conditions for Amazon subcontractors. Spencer Platt/Getty Images
Mamdani is backing new regulations for NYC delivery workers, particularly Amazon subcontractors.
Amazon said the bill could cause it to move warehouses outside the city, jeopardizing local jobs.
The Mamdani administration has a pattern of taking action against major corporations.
Mayor Zohran Mamdani is backing new safeguards for delivery workers in New York City — and the proposal would give City Hall more regulatory power over commerce giants like Amazon.
The Delivery Protection Act, sponsored by New York City Council Member Tiffany L. Cabán, would increase licensing requirements for companies that operate delivery-focused warehouse facilities, opening the door to expanded safety, training, and resources for delivery workers. Companies like Amazon frequently subcontract last-mile delivery to these types of facilities, leaving workers in a murky gray area without the traditional protections afforded to those who work directly for the retail giants.
"If Amazon is delivering your packages, they should follow the same rules as any other delivery company," Mamdani said in an endorsement announcement video Monday.
Kelly Nantel, a spokesperson for Amazon, told Business Insider that the legislation could jeopardize the company's ability to hire local workers. "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 and forcing us to consider relocating delivery operations outside of the city," she said. Nantel said Amazon is inviting all members of City Council to visit their delivery station and meet contractors before casting their vote.
In testimony to NYC government, the company also said the bill "would prohibit our agreements with more than 40 local small businesses known as Delivery Service Partners (DSPs), who provide jobs to thousands of New Yorkers from the communities and neighborhoods they serve."
The New York Delivers Coalition, a group of 50 small businesses, also sent a letter to the council Monday opposing the bill, urging lawmakers to "consider the real world ramifications this legislation will have on the small, family-owned business community that powers New York's last-mile delivery ecosystem."
NYC wants more protections for workers; Amazon says the bill would drive up costs
It's standard practice for companies like Amazon to hire workers at third-party delivery firms as contractors rather than full-time employees, meaning the companies can set work requirements and sometimes details like a worker's schedule — but the workers are not guaranteed benefits, wages, or employment protections. These contractors are often responsible for providing their own work equipment, like bikes or delivery trucks.
The NYC Comptroller's Office reported that "last mile" package distribution facilities — the warehouses where subcontractors typically pick up packages before they are delivered to their recipients — have rapidly expanded across NYC. Eighteen of these facilities have opened in the five boroughs between 2017 and 2025
For corporations, these arrangements allow them to keep overhead costs low and ensure quick package delivery . For workers, it can mean they have limited opportunities for recourse if something goes wrong.
Mamdani's camp said they are cracking down on delivery subcontracting practices they say leave workers "vulnerable" to "reckless conditions on city streets." The Delivery Protection Act would require "last mile" warehouse operators to obtain a business license through the city's Department of Consumer and Worker Protection , giving the city jurisdiction over fair work practices.
Cabán told Business Insider that she hopes it will "keep workers and our streets safe and end the charade of huge corporations hiding behind third-party contractors to evade accountability."
The mayor has also said he will continue to take on food delivery apps like Uber Eats and DoorDash for what City Hall calls " deceptive tipping practices ." In late July, his administration said its crackdown has resulted in an additional $104 million in tips to delivery workers since January. John Horton, head of North America public policy at DoorDash, previously told Business Insider that the city's findings about its tipping practices were "flat out wrong."
The Delivery Protection Act is currently being evaluated by the City Council after a hearing on the bill was held last spring.
The news of Mamdani's announcement comes days after New Jersey's attorney general sued Amazon under federal antitrust law, accusing the company of abusing its market power to suppress pay for delivery companies and their drivers. A spokesperson for Amazon said, "this complaint is not grounded in fact," and delivery partners are independent businesses. Contracted workers "are free to choose their employer and associate with who they want, full stop."
Read the original article on Business Insider
AIPROPX is an independent multi-source news index — we track, compare, and connect coverage from across the web into one place you won't find anywhere else.