Amazon's delivery battle could hit your pocket hard? What you need to know about Mamdani's new bill

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Amazon is disputing a New York City bill that could require it to hire thousands of delivery workers, potentially increasing delivery costs and disrupting its current model. The bill, reintroduced by Tiffany Caban, may lead Amazon to relocate its distribution centers outside the city.

Amazon Faces NYC Bill That Could Force Direct Hiring of Delivery WorkersAmazon Faces NYC Bill That Could Force Direct Hiring of Delivery Workers(REUTERS)

Amazon is now currently in dispute with New York City lawmakers over a new bill that could force the e-commerce giant to directly hire thousands of delivery workers across the city.

If passed, it may significantly increase delivery costs for customers. At the same time it would disrupt Amazon’s current model, which relies on over 40 subcontractors employing around 5,000 drivers using vans and e-bikes.

The bill was reintroduced this year by Tiffany Caban and is set for its first public hearing at City Hall on Thursday.

“This bill lights a ton of dynamite under the delivery industry,” a source close to the development told The Post.

How the law is likely to impact the Amazon's business?

If the bill becomes law, Amazon would likely relocate its 10 city-based distribution centers out of New York City to nearby areas like New Jersey, Long Island, and Westchester County, according to an economic analysis reviewed by The Post. It would slow down deliveries and make them more expensive.

According to a draft of the study by consultancy AKRF that households in New York City may have to pay about $664 more per year for deliveries. “Carriers warn that on-time performance will suffer. 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.

What Amazon said?

Amazon spokesperson Kelly Nantel on Wednesday said in a statement, as confirmed by The Post, 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 supported by the International Brotherhood of Teamsters, which has long been trying to organise Amazon warehouse workers but has not yet secured a contract with Amazon. A spokesperson, Matt McQuaid, said, as reported by The Post, the rules would also cover warehouses outside the city if they handle last-mile deliveries into New York City.

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.”

About the Author

Sanchari Ghosh

Sanchari Ghosh is a Chief Content Producer at Livemint with 12 years of experience. She takes a keen interest in all things news. Before joining LiveMint, Sanchari worked with BloombergQuint, Outlook Money, Times of India & DNA. Off duty, Sanchari is a sports enthusiast at heart and alternates between tennis, football, and cricket.

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