New Yorkers won’t be happy about this.
Amazon is warning that a controversial New York City proposal backed by Mayor Zohran Mamdani could force the retail giant to move some of its delivery operations outside the five boroughs — potentially affecting thousands of jobs and raising costs for consumers.
The growing battle centers on the Delivery Protection Act, officially known as Intro 0518-2026, sponsored by New York City Council Member Tiffany Cabán.
The legislation would impose new licensing, employment, safety and training requirements on certain last-mile delivery facilities operating in New York City. It would also require operators to directly employ workers performing certain core services rather than relying on the existing subcontracting arrangements used by companies such as Amazon.
Amazon strongly opposes the proposal.
The company says it wants to continue operating in New York City but warns that the legislation, if enacted in its current form, could result in some delivery facilities and operations being moved outside city limits.
Amazon Warns New Yorkers Could Face Higher Costs
The fight could eventually reach the wallets of ordinary New Yorkers.
Amazon cited an economic analysis prepared by consulting firm AKRF for the Five Borough Jobs Campaign, a coalition opposing the legislation.
According to the analysis, moving delivery facilities farther away from customers could increase travel times, fuel expenses and labor costs while reducing the number of packages drivers can deliver on individual routes.
The study projected that fully relocating affected operations could increase the cost per package for deliveries currently handled through New York City facilities by as much as 267%.
It also estimated service levels could decline between 10% and 21%.
Most strikingly, the analysis projected that higher delivery expenses could translate into as much as $664 in additional annual costs per New York City household.
That figure is an estimate produced for a group opposing the legislation, not a projection from New York City government, and the actual consumer impact would depend on how delivery companies respond if the proposal becomes law.
Amazon Considers Moving Delivery Operations
Amazon says it isn’t looking to abandon New York City.
Instead, the company says it is considering its options for limiting the potential financial and operational impact of the proposed law.
One possibility is moving affected delivery facilities outside the five boroughs.
Operations could potentially shift to surrounding areas such as New Jersey, Long Island or Westchester County, allowing packages to be transported into New York City from facilities beyond the reach of the proposed city licensing requirements.
That could dramatically change the last-mile delivery network New Yorkers currently depend on for online purchases.
Amazon has publicly said that its goal remains working with City Council members and continuing to create jobs in New York.
But the company has also made clear that relocation is among the options being evaluated.
More Than 5,000 Delivery Jobs Could Be Affected
Jobs are another major issue in the dispute.
Amazon says it works with more than 40 Delivery Service Partners, or DSPs, in New York City.
These are independent businesses that contract with Amazon and employ their own delivery workers.
According to Amazon, those businesses collectively employ more than 5,000 people in the city.
The company argues that the Delivery Protection Act would threaten the existing business model used by these companies and could jeopardize their operations.
Amazon says large corporations may have the resources to adapt to sweeping regulatory changes, but smaller businesses could face much greater challenges.
That argument has become a central part of the opposition campaign against the proposal.
Small Business Owners Sound The Alarm
Some local delivery business owners are also urging the City Council to reconsider.
The New York Delivers Coalition says many of the companies working within the city’s last-mile delivery system are genuine independent small businesses rather than extensions of large corporations.
Some were started by first-generation Americans and minority entrepreneurs who began with only a handful of employees before expanding their operations.
Coalition members say they hire their own employees, manage their own payrolls and operate their own teams.
Some now employ more than 100 workers.
The coalition argues that while Amazon could adapt to the legislation, smaller contractors might not have the same financial flexibility.
It estimates that more than 10,000 local jobs throughout the broader delivery industry could ultimately be at risk.
Those numbers represent the opponents’ assessment of the legislation’s potential effects rather than confirmed job losses.
Mamdani Defends The Delivery Protection Act
Mayor Mamdani and supporters of the legislation have a very different view.
The mayor argues that major corporations have used subcontracting arrangements to distance themselves from responsibility for workers who deliver their products.
His administration says large companies can exercise substantial influence over delivery routes, workplace expectations and productivity standards while workers are technically employed by separate businesses.
Supporters believe the Delivery Protection Act would increase corporate accountability while improving working conditions and public safety.
The legislation would require operators of certain last-mile facilities to obtain a business license from the New York City Department of Consumer and Worker Protection.
Licensing would come with new requirements involving employment, worker training and safety.
Mamdani has publicly thrown his support behind the proposal, arguing that companies benefiting from New York City’s massive delivery market should be held accountable for the workers and operations behind those deliveries.
Supporters Say Workers Need Greater Protection
Labor organizations, including the Teamsters, have strongly supported the legislation.
Supporters contend that Amazon’s Delivery Service Partner model allows the company to maintain substantial influence over its delivery network without directly employing many of the drivers delivering Amazon packages.
They believe requiring direct employment would give workers stronger protections and establish clearer responsibility when workplace or public-safety problems arise.
Cabán has similarly argued that large delivery companies should not be able to avoid responsibility by placing contractors between themselves and workers.
The proposal therefore represents more than a licensing dispute.
It is also part of a broader disagreement over how much responsibility major corporations should bear for workers employed by companies in their contractor networks.
Amazon Says Its Small Business Model Is At Risk
Amazon rejects the characterization that its delivery partners merely exist to shield the company from responsibility.
The company maintains that its Delivery Service Partners are independent businesses that employ thousands of New Yorkers and provide opportunities for local entrepreneurs.
That leaves lawmakers facing competing claims.
Supporters say the legislation could strengthen worker protections and corporate accountability.
Opponents warn it could destroy independent delivery businesses, eliminate jobs, increase consumer costs and push logistics operations beyond New York City’s borders.
Amazon Invites Lawmakers To See Delivery Operations
Amazon has invited members of the New York City Council to visit its delivery stations and meet directly with Delivery Service Partners and their employees.
The company says lawmakers should see how the businesses operate before making a decision that could fundamentally change the city’s delivery industry.
Amazon says it has also invited Cabán to visit its operations.
Delivery business owners have issued a similar invitation, asking elected officials to tour facilities, accompany drivers on delivery routes and speak directly with employees.
Their message is that businesses and workers potentially affected by the legislation should have an opportunity to make their case before a final decision is made.
What Happens Next Could Affect Millions Of New Yorkers
The political fight over the Delivery Protection Act ultimately comes down to two competing arguments about New York City’s massive package-delivery economy.
Mamdani, Cabán and labor supporters say stronger regulations are needed to protect workers, improve safety and prevent major corporations from avoiding responsibility through subcontracting.
Amazon and small-business opponents warn that the proposal could produce serious unintended consequences, including job losses, higher delivery prices, slower service and the relocation of operations outside New York City.
For consumers, the possibility of higher costs may be the most immediate concern.
For thousands of delivery workers and small-business owners, the stakes are their jobs and livelihoods.
And for Amazon, the question is whether operating its existing last-mile delivery model inside New York City will remain economically and legally practical if the legislation becomes law.
Amazon says it wants to stay.
But it is also warning city leaders that if the Delivery Protection Act passes in its current form, some of the operations responsible for getting packages to millions of New Yorkers could end up moving beyond the five boroughs.
