Amazon Delivery Bill Backed by Mamdani Could Raise NYC Prices as It Targets 'Exploitative' Model

New York City Mayor Zohran Mamdani has backed a bill targeting Amazon's delivery model, a move supporters say will make streets safer but which industry groups warn could add roughly $664 (£492) a year to household costs across the city.

Mamdani announced his support on Monday for the Delivery Protection Act, sponsored by Council Member Tiffany Cabán, in a video posted to social media. The measure would require last-mile warehouses to obtain city licences and hold operators such as Amazon and FedEx responsible for the workers who deliver their packages.

A Fight Over Amazon's Subcontracting Model

Amazon delivers through more than 40 Delivery Service Partners (DSPs) in New York City, independent firms that together employ over 5,000 drivers. Amazon sets the routes, quotas, and schedules while the contractors formally employ the workers.

Mamdani calls this an 'exploitative' arrangement that shields the company from responsibility. 'Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting,' he said in a statement.

The bill would bar third-party contracting for core delivery work after a phase-in, requiring operators to employ drivers directly from the 12th month after the law takes effect.

The Affordability Paradox

Mamdani won the election on a promise to make New York City cheaper to live in, and the delivery bill complicates that pledge. A study by the consultancy AKRF, commissioned by a coalition of local business groups, estimated the changes could add $664 a year to the average household's costs. Amazon and logistics firms have cited the figure to argue the law would hit consumers.

City Hall rejects that framing. A spokesperson said the suggestion that paying delivery workers more undercuts affordability is 'absurd', noting that drivers are consumers too and deserve fair pay.

Small Delivery Firms Fear Closure

Some contractors say the law would end their businesses outright. Charles DiMaria, who owns Accelerated Flywheel Logistics and delivers by bike in Lower Manhattan, said the bill would close his firm and put his 150 staff out of work.

Amazon has warned it could shift delivery operations outside the city, a move that would put those 5,000 jobs at risk. A coalition of about 50 delivery and logistics companies told the Council the measure could threaten more than 10,000 jobs.

Supporters point to safety. A 2025 report from the New York City Comptroller found 78% of areas around last-mile facilities saw a rise in injury-causing crashes after the warehouses opened, with injuries within half a mile (0.8 kilometre) up 16% on average. Amazon disputes the comptroller's findings, saying its recordable injury rate has improved by 43% since 2019 and that safety is a priority for the company and its partners.

A Template Other Cities Could Copy

The stakes reach beyond New York. If passed, the Delivery Protection Act would be the first law of its kind in the US and could hand other cities a model for regulating Amazon, the nation's second-largest private employer. The bill has majority support on the City Council and could come to a vote as early as this autumn.

For shoppers, the outcome will shape both the price and the speed of the next package left at the door. For drivers, it will decide whether the job gets safer or vanishes.