By Basant El-Faramawy
New York City Mayor Zohran Mamdani is backing legislation that would prohibit Amazon from using third-party delivery contractors, requiring the e-commerce giant to hire drivers directly. The proposed ban, part of a broader licensing bill, would be the first such prohibition in the United States.
Bill Would Ban Third-Party Contractors
None of the drivers operating Amazon-branded vans and trucks in the city are employed by Amazon; they work for an assortment of delivery service partners under contract with the company. Mamdani has called the arrangement exploitative and says the bill would improve working conditions for drivers.
Council Speaker Voices Concerns
City Council Speaker Julie Menin, a centrist Democrat, has expressed reservations that the measure could cost the city jobs and prompt Amazon to raise prices. Menin's team is reviewing amendments that would narrow the bill to focus on licensing warehouses and regulating third-party operations, without mandating direct hiring.
Negotiations Underway
The mayor's office and the City Council are currently negotiating amendments. Supporters argue the original bill would strengthen labor standards, while opponents warn of economic repercussions. The outcome will determine whether New York sets a national precedent for regulating gig-economy delivery models.
