Mamdani supports a New York City bill aimed at cracking down on Amazon's outsourcing model. New York City is taking on Amazon ($AMZN) with a bill that would require delivery companies to directly employ last-mile workers rather than relying on third-party subcontractors. The Delivery Protection Act, introduced by New York City Council member Tiffany Cabán and supported by Mayor Zohran Mamdani, envisions creating a licensing system for certain last-mile warehouses and distribution facilities.
The bill would also set minimum safety, training and worker protection standards while holding the company operating a last-mile delivery facility responsible for employing the workers working there. While Amazon ( AMZN ) is the main target, companies like FedEx ( FDX ) and UPS ( UPS ) will also be affected.
Pointing to the increase in traffic accidents and worker injuries, Mamdani said, "Companies like Amazon are creating billion-dollar business models by shielding themselves from accountability through an exploitative subcontracting system."
The mayor said the bill is a "common-sense regulation" that ensures companies that benefit from workers' labor are held accountable for the consequences of their business practices.
"Amazon's Delivery Service Partner model is the most dangerous business model in America today," said Sean O'Brien, chief executive of the Teamsters union. “The Delivery Protection Act is the road map for how workers can fight back against Amazon’s greed.”
If passed, the bill could serve as a model for other U.S. cities and states to tighten oversight of Amazon ( AMZN ), the United States' second-largest private-sector employer.
Amazon ( AMZN ) said in April that the bill would force it to consider moving its delivery operations out of New York City. The Amazon-backed coalition New York Delivers had warned that the bill would "put jobs at risk, increase costs for working families and make it harder for small businesses, especially in the outer boroughs, to survive."
The Teamsters union alleged that Amazon (AMZN) had aggressively lobbied against the bill, spending more than $5 million to "fund its dark money campaign."
This bill is likely to face legal challenges, as is the second home tax, another controversial move by Mamdani.
A judge on Monday temporarily halted a tax on high-value second homes in New York City while a lawsuit filed by homeowners continues. President Donald Trump criticized the proposed tax, saying "I'm investigating whether the federal government has any legal right to prevent this disaster before it's too late."
