On Monday, New York City Mayor Zohran Mamdani (D) backed legislation to strengthen protections for delivery workers, but Amazon.com, Inc. (NASDAQ:AMZN) says the proposal could put more than 5,000 local jobs at risk.
Mamdani Takes Aim at Amazon’s Delivery Model
Mamdani endorsed the Delivery Protection Act, throwing his support behind a bill introduced by New York City Council Member Tiffany L. Caban that would increase oversight of facilities used for last-mile deliveries.
"If Amazon is delivering your packages, they should follow the same rules as any other delivery company," Mamdani said in an announcement video posted on X.
The legislation would require operators of last-mile delivery facilities to obtain licenses through the city’s Department of Consumer and Worker Protection.
The bill also targets Amazon’s use of Delivery Service Partners, or DSPs. These independent businesses typically employ drivers who deliver Amazon packages, creating a layer between Amazon and the workers on the road.
Amazon Warns of Job Losses
Amazon is pushing back against the proposal, saying it could hurt the small businesses that handle its deliveries across New York City.
Amazon spokesperson Kelly Nantel told Business Insider that the legislation could put more than 5,000 jobs at risk.
She added that Amazon has invited all City Council members to visit its delivery stations and meet with contractors before voting on the bill.
In testimony before New York City officials, Amazon said the bill could disrupt agreements with more than 40 local DSPs that employ thousands of New Yorkers.
A coalition representing 50 small delivery businesses has also opposed the legislation, warning lawmakers about its potential impact on family-owned companies.
Amazon did not immediately respond to Benzinga’s request for comment.
Why the Delivery Bill Matters
Last-mile delivery facilities have expanded rapidly across New York City, with 18 opening between 2017 and 2025, according to the NYC Comptroller’s Office.
The Delivery Protection Act remains under review by the City Council following a hearing earlier this year.
Price Action: Amazon closed at $278.09 on Monday, up 1.32%, while the stock fell 0.39% to $277 in after-hours trading, according to Benzinga Pro.
Benzinga Edge ranks Amazon in the 90th percentile for Growth, while the stock maintains a positive price trend across the short-, medium- and long-term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Ron Adar on Shutterstock.com
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