Mamdani's crackdown on Amazon could cost New York thousands of jobs and an extra $664 a year per household

The administration of socialist Mayor Zohran Mamdani has made Amazon the main target of its agenda. The mayor supports the Delivery Protection Act, a law that would require large companies with distribution centers in the city to directly hire the drivers who currently work for more than 40 small partner companies.

According to information revealed by the New York Post this Friday, Amazon warns that the measure could force it to close warehouses and relocate operations outside the city. Experts cited by the newspaper point out that this could lead to the closure of its 15 last-mile facilities and put at risk more than 5,000 jobs at local businesses and the 2,000 employees at its distribution centers.

What the law would change

The proposal, introduced by Councilwoman Tiffany Cabán, would require last-mile facilities to obtain a municipal license and would require the company operating the center—Amazon, in this case—to assume the status of employer for delivery drivers. City Hall argues that the current model allows large corporations to control routes, quotas and working conditions without assuming direct responsibility.

According to the Post, among the possible agreements that have been considered is allowing independent contractors to continue making deliveries, in exchange for Amazon offering greater safety guarantees to workers. No date has been set for the vote yet.

Amazon: Fewer options and higher costs

Amazon argues that the proposal could make the service more expensive and slower in New York if the company is forced to move its distribution centers out of the city. The company funded a study by AKRF that estimates the regulation could add up to $664 per year to household expenses—about $5.20 per shipment.

"New York is one of the largest and most complex delivery regions in the country," said Amazon spokesperson Steve Kelly. "It is best served by a network of small local businesses that are deeply integrated into their communities and leverage our operational infrastructure."

The Canadian precedent

The precedent set in Quebec explains why the threat from Amazon cannot be dismissed. According to the New York Post, in early 2025, the company closed its seven facilities in the province and eliminated nearly 1,900 direct jobs, in addition to affecting some 2,800 delivery drivers from partner companies. Amazon attributed the decision to cost savings and a return to a third-party delivery model, while the Confederation of National Unions (CSN) called it an anti-union campaign.

In Quebec, the operation was much smaller than in New York, where Amazon directly or indirectly employs more than 12,000 hourly workers. Even so, the case demonstrates that the company is willing to restructure an entire network when it considers the business model to be no longer viable.