Amazon is squaring off against New York City legislators over a bill that could force the e-commerce giant to hire thousands of delivery workers across the five boroughs — a rule that could send customers’ bills soaring by several hundred dollars per year, The Post has learned.
The controversial Delivery Protection Act – reintroduced earlier this year by Democratic Queens Councilwoman Tiffany Caban and slated for its first public hearing at City Hall on Thursday – could upend Amazon’s delivery model, which relies on more than 40 subcontractors who employ some 5,000 workers to drive Amazon’s branded vans and e-bikes across the city.
“This bill lights a ton of dynamite under the delivery industry,” said an industry source who works with Amazon and its logistics providers.
Indeed, if the bill becomes law Amazon would likely relocate its 10 city-based distribution centers to nearby areas just outside the city borders in New Jersey, Long Island and Westchester County, according to an economic impact analysis of the proposed legislation reviewed by The Post.
A retreat outside the city limits would result in deliveries that are not only significantly slower but also more costly — with New York City households paying an extra $664 a year to get their goods, according to a draft of the study by consultancy AKRF.
“Carriers warn that on-time performance will suffer,” according to a draft of the study. “Customers may wait longer on average for their orders and it will become harder to meet tight delivery windows like overnight or same day service in many areas.”
The study was commissioned by Five Borough Jobs Campaign, an organization comprised of chambers of commerce, business improvement districts and economic development corporations.
The proposed legislation would require so-called last mile distribution centers to be licensed by the city and to also employ their delivery workers directly. Violations of the license could result in a facility being shut down, according to the bill.
In the company’s first public statement on the situation, Amazon spokesperson Kelly Nantel on Wednesday confirmed to The Post that the legislation “would also force us to consider relocating delivery operations outside of the city.”
“We’re committed to creating good jobs, supporting our thousands of employees and local small business partners in New York City, and providing fast, affordable delivery in a safe working environment,” Nantel said.
“As written, this legislation would directly undermine that commitment, threatening the more than 40 Delivery Service Partners we work with in New York City every day and putting the jobs of their more than 5,000 employees at risk,” she added.
The bill is backed by the Teamsters union, which has been trying to organize Amazon warehouse workers for years but does not yet have a contract with the company.
The union maintains that the licensing requirement would also apply to warehouses located outside of the city as long as they are providing last-mile delivery into the city, said spokesman Matt McQuaid.
Hundreds of supporters and opponents of the legislation are gearing up for rallies on Thursday outside City Hall. Democratic socialist Mayor Zohran Mamdani and City Council Speaker Julie Menin have not yet weighed in on the proposal — although both have come down hard on the food delivery apps.
The mayor’s office did not respond to requests for comment. A spokesman for Menin, a Manhattan Dem, said she is waiting for the “bill to go through the legislative process, to receive input and engagement from stakeholders.”
“It’s a tough bill and needs a lot of work,” said Upper West Side Councilwoman Gale Brewer, a Dem who is among 31 co-sponsors of the legislation. “It won’t be a quick process.”
A newly formed coalition called New York Delivers includes small business owners who deliver for Amazon, along with the city’s Chambers of Commerce. They say Amazon is not the only target of the legislation.
Other companies including FedEx, DHL, FreshDirect, DoorDash and dozens of logistics providers would either be required to apply for city licenses or even be put out of business, according to the coalition’s spokesperson.
A DoorDash rep said the company plans to submit testimony at the Thursday hearing.
The Teamsters argue that the bill provides sorely needed worker protections and training and ensures that Amazon’s vehicles – which are leased by Amazon’s delivery service providers known as DSPs – are in good condition.
“Amazon wants to avoid legal liability,” when drivers are involved in accidents, McQuaid said.
A NYC comptroller report last year showed that crashes near last-mile facilities that resulted in injuries increased by 16% in 2024. Truck-related crashes increased by 146% and that Amazon’s DSP program had a higher injury rate than other similar last mile courier companies, the report found.
Two logistics companies that partner with Amazon insist their workers are paid above average wages, get full health care and undergo safety training.
“We are not fly-by-night operations,” Juan Martinez, who owns COPR Industries, told The Post.
His company employs more than 100 Amazon drivers who are paid $20.50 an hour for operating e-bikes and $23.75 an hour for driving vans around Brooklyn.
DashWave Delivery, which operates in Manhattan and employs up to 150 drivers, would be put out of business if the licensing requirement is enacted, owner Kris Basmagy told The Post.
“There is a ton of misinformation about what we do and who we are,” Basmagy said.
While the legislation would affect any facility that makes deliveries in the city, there are exemptions, McQuaid said.
The bill excludes retail businesses that make deliveries from their storefronts directly to consumers, including florists and restaurants.
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