NYC bill would force Amazon to hire thousands of local delivery

NYC bill would force Amazon to hire thousands of local delivery

Amazon is squaring off against New York City legislators over a bill that may force the e-commerce large to hire thousands of delivery staff across the 5 boroughs — a rule that may ship clients’ payments hovering by a number of hundred {dollars} per 12 months, The Post has discovered.

The controversial Delivery Protection Act – reintroduced earlier this 12 months by Democratic Queens Councilwoman Tiffany Caban and slated for its first public listening to at City Hall on Thursday – may upend Amazon’s delivery mannequin, which depends on more than 40 subcontractors who make use of some 5,000 staff to drive Amazon’s branded vans and e-bikes across the metropolis.

“This bill lights a ton of dynamite under the delivery industry,” said an business source who works with Amazon and its logistics suppliers. 

So-called last mile delivery amenities would want to be licensed by New York City, according to a bill launched this 12 months. REUTERS

Indeed, if the bill turns into legislation Amazon would possible relocate its 10 city-based distribution facilities to close by areas just outdoors the metropolis borders in New Jersey, Long Island and Westchester County, according to an financial impression analysis of the proposed laws reviewed by The Post.

A retreat outdoors the metropolis limits would result in deliveries that usually are not only considerably slower however also more pricey — with New York City households paying an additional $664 a 12 months to get their items, according to a draft of the examine by consultancy AKRF. 

“Carriers warn that on-time performance will suffer,” according to a draft of the examine. “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 examine was commissioned by Five Borough Jobs Campaign, a company comprised of chambers of commerce, enterprise enchancment districts and financial development firms.

New York City councilwoman, Tiffany Caban, launched the Delivery Protection Act. Robert Miller for NY Post

The proposed laws would require so-called last mile distribution facilities to be licensed by the metropolis and to also make use of their delivery staff straight. Violations of the license may result in a facility being shut down, according to the bill.  

In the company’s first public assertion on the state of affairs, Amazon spokesperson Kelly Nantel on Wednesday confirmed to The Post that the laws “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.

Amazon doesn’t make use of its delivery drivers of vans and e-bikes. Christopher Sadowski

“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 attempting to arrange Amazon warehouse staff for years however doesn’t yet have a contract with the company. 

The union maintains that the licensing requirement would also apply to warehouses situated outdoors of the metropolis so long as they’re offering last-mile delivery into the metropolis, said spokesman Matt McQuaid.

Mayor Zohran Mamdani has not indicated whether or not he helps the Delivery Protection Act. ZUMAPRESS.com

Hundreds of supporters and opponents of the laws are gearing up for rallies on Thursday outdoors  City Hall. Democratic socialist Mayor Zohran Mamdani and City Council Speaker Julie Menin haven’t yet weighed in on the proposal — although each have come down onerous on the meals delivery apps.

The mayor’s workplace didn’t reply to requests for remark. A spokesman for Menin, a Manhattan Dem, said she is ready for the “bill to go through the legislative process, to receive input and engagement from stakeholders.”

City Council speaker Julie Menin is “allowing the bill to go through the legislative process” before she weighs in on its deserves. Brigitte Stelzer for NY Post

“It’s a tough bill and needs a lot of work,”  said Upper West Side Councilwoman Gale Brewer, a Dem who’s among 31 co-sponsors of the laws. “It won’t be a quick process.”

A newly shaped coalition called New York Delivers consists of small enterprise house owners who ship for Amazon, together with the metropolis’s Chambers of Commerce. They say Amazon shouldn’t be the only goal of the laws.

Other firms including FedEx, DHL, FreshDirect, DoorDash and dozens of logistics suppliers would both be required to apply for metropolis licenses or even be put out of enterprise, according to the coalition’s spokesperson.

A DoorDash rep said the company plans to submit testimony at the Thursday listening to.

The Teamsters argue that the bill offers sorely wanted employee protections and training and ensures that Amazon’s autos – that are leased by Amazon’s delivery service suppliers referred to as DSPs – are in good condition.

“Amazon wants to avoid legal liability,” when drivers are concerned in accidents, McQuaid said.

A NYC comptroller report last 12 months confirmed that crashes close to last-mile amenities that resulted in accidents elevated by 16% in 2024. Truck-related crashes elevated by 146% and that Amazon’s DSP program had a better injury charge than other comparable last mile courier firms, the report discovered.

Some e-bike Amazon drivers are paid about $20 an hour. Christopher Sadowski

Two logistics firms that accomplice with Amazon insist their staff are paid above common wages, get full health care and endure security 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’re paid $20.50 an hour for working e-bikes and $23.75 an hour for driving vans round Brooklyn.

DashWave Delivery, which operates in Manhattan and employs up to 150 drivers, would be put out of enterprise if the licensing requirement is enacted, proprietor Kris Basmagy told The Post.

“There is a ton of misinformation about what we do and who we are,” Basmagy said. 

While the laws would have an effect on any facility that makes deliveries in the metropolis, there are exemptions, McQuaid said.

The bill excludes retail companies that make deliveries from their storefronts straight to customers, including florists and eating places.

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