Mayor Zohran Mamdani is backing caller safeguards for transportation workers successful New York City — and the connection would springiness City Hall much regulatory powerfulness complete commerce giants for illustration Amazon.
The Delivery Protection Act, sponsored by New York City Council Member Tiffany L. Cabán, would summation licensing requirements for companies that run delivery-focused storage facilities, opening the doorway to expanded safety, training, and resources for transportation workers. Companies for illustration Amazon often subcontract last-mile transportation to these types of facilities, leaving workers successful a murky grey area without the accepted protections afforded to those who activity straight for the unit giants.
"If Amazon is delivering your packages, they should travel the aforesaid rules arsenic immoderate different transportation company," Mamdani said successful an endorsement announcement video Monday.
Kelly Nantel, a spokesperson for Amazon, told Business Insider that the authorities could jeopardize the company's expertise to prosecute section workers. "As written, this authorities would straight undermine that committedness — threatening the mini businesses that present to customers, putting the jobs of much than 5,000 of their labor astatine consequence and forcing america to see relocating transportation operations extracurricular of the city," she said. Nantel said Amazon is inviting each members of City Council to sojourn their transportation position and meet contractors earlier casting their vote.
In grounds to NYC government, the institution besides said the measure "would prohibit our agreements pinch much than 40 section mini businesses known arsenic Delivery Service Partners (DSPs), who supply jobs to thousands of New Yorkers from the communities and neighborhoods they serve."
The New York Delivers Coalition, a group of 50 mini businesses, besides sent a missive to the assembly Monday opposing the bill, urging lawmakers to "consider the existent world ramifications this authorities will person connected the small, family-owned business organization that powers New York's last-mile transportation ecosystem."
NYC wants much protections for workers; Amazon says the measure would thrust up costs
It's modular believe for companies for illustration Amazon to prosecute workers astatine third-party transportation firms arsenic contractors alternatively than full-time employees, meaning the companies tin group activity requirements and sometimes specifications for illustration a worker's schedule — but the workers are not guaranteed benefits, wages, aliases employment protections. These contractors are often responsible for providing their ain activity equipment, for illustration bikes aliases transportation trucks.
The NYC Comptroller's Office reported that "last mile" package distribution accommodation — the warehouses wherever subcontractors typically prime up packages earlier they are delivered to their recipients — person quickly expanded crossed NYC. Eighteen of these accommodation person opened successful the 5 boroughs betwixt 2017 and 2025
For corporations, these arrangements let them to support overhead costs debased and guarantee quick package delivery. For workers, it tin mean they person constricted opportunities for recourse if thing goes wrong.
Mamdani's campy said they are cracking down connected transportation subcontracting practices they opportunity leave workers "vulnerable" to "reckless conditions connected metropolis streets." The Delivery Protection Act would require "last mile" storage operators to get a business licence done the city's Department of Consumer and Worker Protection, giving the metropolis jurisdiction complete adjacent activity practices.
Cabán told Business Insider that she hopes it will "keep workers and our streets safe and extremity the charade of immense corporations hiding down third-party contractors to evade accountability."
The politician has besides said he will proceed to return connected food delivery apps for illustration Uber Eats and DoorDash for what City Hall calls "deceptive tipping practices." In precocious July, his management said its crackdown has resulted successful an further $104 cardinal successful tips to transportation workers since January. John Horton, caput of North America nationalist argumentation astatine DoorDash, antecedently told Business Insider that the city's findings astir its tipping practices were "flat retired wrong."
The Delivery Protection Act is presently being evaluated by the City Council aft a proceeding connected the measure was held past spring.
The news of Mamdani's announcement comes days aft New Jersey's lawyer wide sued Amazon nether national antitrust law, accusing the institution of abusing its marketplace powerfulness to suppress salary for transportation companies and their drivers.
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