Amazon warns Mamdani-backed delivery mandate could cost NYC households hundreds every year

Amazon has warned that a new union-backed legislative proposal in New York City, known as the Delivery Protection Act (Intro 0518), could significantly increase consumer expenses and disrupt its regional logistics network. The bill, introduced by City Councilmember Tiffany Caban and endorsed by Mayor Zohran Mamdani, seeks to prohibit major delivery firms from utilizing third-party subcontractors for last-mile deliveries, mandating that facility operators directly employ core logistics personnel. According to an impact analysis by consulting firm AKRF cited by Amazon, the bill could trigger a 267% surge in cost per package handled within city facilities, potentially adding $664 annually to average household delivery costs while reducing service quality levels by 10% to 21%. Amazon and small business logistics groups noted that the mandate threatens more than 40 Delivery Service Partners (DSPs) and thousands of local jobs. In response to the potential regulatory hurdles, Amazon indicated it is evaluating operational contingencies, including shifting delivery hubs and last-mile facilities out of the five boroughs into neighboring areas like New Jersey, Long Island, or Westchester.