NYC mayor backs measure that could transform last-mile delivery operations in city
New York City Mayor Zohran Mamdani has announced his support of a measure that could bring a big change to how goods are delivered to consumers across the city's five boroughs.
The Delivery Protection Act, currently pending before the New York City Council, would create a licensing system for certain last-mile warehouses and distribution facilities while establishing new safety, training and labor standards. It would also require the company operating the facility, such as Amazon, to hire their own delivery workers rather than using the sub-contractors that many rely on.
“As last-mile delivery centers have exploded across New York, so too have traffic accidents and worker injuries,” said Mayor Mamdani. “The Delivery Protection Act is commonsense regulation that protects delivery workers, safeguards the communities where these facilities operate and ensures that the corporations benefiting from workers’ labor are responsible for the consequences of their business practices.”
Since 2017, at least 18 large last-mile facilities have opened across New York City, including 11 since 2020, according to a statement on nyc.gov.
The bill’s opponents argue it would drive up the costs of delivery to consumers and slow the arrival of packages. A study commissioned by an Amazon-funded group found that the regulations could increase the cost of delivery by as much as $5.20 per package, or $664 annually per household. Critics of the bill also say it could companies with massive delivery operations to move their distribution centers out of New York City.
Kelly Nantel, a spokesperson for Amazon, told Business Insider that the legislation could jeopardize the company's ability to hire local workers.
"As written, this legislation would directly undermine that commitment — threatening the small businesses that deliver to customers, putting the jobs of more than 5,000 of their employees at risk and forcing us to consider relocating delivery operations outside of the city," she said in the report.
In May, the Mamdani administration announced that the city had recovered more than $9 million from Amazon after the company’s delivery vehicles accrued fines due to idling violations.
