Amazon's Delivery Battle Could Hit Your Pocket Hard: What You Need To Know About Mamdani's New Bill

(MENAFN- Live Mint) Amazon is 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, the New York Post reported on Wednesday.

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, reintroduced this year by Tiffany Caban, 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 law is likely to impact Amazon's business?

If the bill becomes law, Amazon would likely relocate its 10 city-based distribution centres out of NYC 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 study by the consultancy AKRF, households in New York City may have to pay about $664 more per year for deliveries. The study says,“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.”

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Five Borough Jobs Campaign commissioned the study.

What Amazon said?

Amazon spokesperson Kelly Nantel, in a statement on Wednesday, said, as confirmed by The Post, that 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.

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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.”

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