Amazon threatens to pull 5,000 delivery jobs out of New York City over Mamdani's bill

The Delivery Protection Act would change who employs Amazon’s delivery drivers in New York City. Instead of working for independent delivery companies, more than 5,000 drivers across the five boroughs would become Amazon employees. Supporters say the change would raise wages and create stronger safety standards across delivery work.

Today, Amazon relies on 40 independent delivery service partners in New York City. Those companies employ the drivers and handle deliveries under contracts with Amazon. The proposed law would move the drivers’ employment relationship directly to Amazon, rather than leaving it with those smaller businesses.

That change matters because Amazon does not directly employ delivery couriers anywhere else in the United States. The company has warned that the bill could threaten its logistics model. Analysts say Amazon might respond by removing the contracted jobs and closing all 15 of its New York City last-mile fulfillment stations.

The proposed law could affect thousands of workers and dozens of businesses. More than 5,000 Amazon delivery drivers currently work for independent contractors across New York City. Those drivers are employed by 40 independent delivery service partners, not directly by Amazon.

Amazon also operates 15 last-mile fulfillment stations across the city. The company has warned that it could close all of them if the legislation passes. Those stations are staffed by about 2,000 internal Amazon warehouse workers, whose jobs would be at risk under that scenario.

The figures show why the dispute is larger than a change in employment status. Drivers and their delivery companies could lose their current contracts, while warehouse workers could lose their facilities and jobs. The article does not quantify possible customer effects, but relocating the network would alter how deliveries are organized across the city.

Amazon says the bill would force a major change to its delivery system. The company uses independent contractors for delivery work and does not directly employ delivery couriers elsewhere in the United States. Requiring direct employment in New York City could therefore create a model different from Amazon’s national arrangement.

The company has warned that it could remove the 5,000 contracted delivery roles and close all 15 last-mile fulfillment stations in the city. Analysts say the issue is not only the immediate cost or administration of employment. A New York requirement could be copied by other cities, creating wider pressure on Amazon’s logistics structure.

The article also points to Montreal, where Amazon closed seven warehouses after a union drive. That example has led experts to believe Amazon may accept expensive closures rather than change its operating blueprint. The company could instead shift deliveries to facilities outside New York City.

If Amazon follows through, the immediate effects could spread across the delivery network. The 5,000 drivers employed by independent partners could lose their contracted roles, while the 40 small delivery companies that employ them could shut down. Two thousand Amazon warehouse workers could also lose their jobs if the company closes its 15 city stations.

The article gives specific warnings from delivery-business owners. Kris Basmagy said his company, DashWave Delivery, could be wiped out. Joe Artus said WGA Transit would have to close, putting 189 drivers out of work. Both businesses depend on Amazon’s current contractor arrangement.

Amazon could move distribution hubs outside the city, including to facilities along the New Jersey Turnpike. That would change the location of the delivery network and could mean city orders are handled from farther away. The article does not state whether customers would face delays, higher costs, or reduced service.

Amazon’s Montreal experience is the main precedent behind the New York warning. After a union drive at its Laval facility, organized by the Confédération des syndicats nationaux, Amazon permanently closed seven warehouses around Montreal. The closures followed a dispute over unionisation and the company’s labour arrangements.

By March 2025, the Montreal decision had eliminated roughly 1,900 warehouse jobs. It also ended contracts for 2,800 third-party delivery drivers. Amazon continued paying rent on more than 1.6 million square feet of vacant commercial space, showing the scale of the withdrawal.

Experts use Montreal as a comparison because they say Amazon preferred abandoning facilities to compromising on its logistics model. Marc Wulfraat said the company closes buildings when faced with union activity. Brittain Ladd warned that New York could face an identical outcome if its legislation threatens a model that other cities might copy.

The article presents outside-city warehouses as a possible way for Amazon to keep serving New York customers without accepting the proposed employment structure. Kris Basmagy said Amazon could relocate distribution hubs to warehouses being built along the New Jersey Turnpike. This would preserve access to the market while avoiding the city’s mandated arrangement.

The key change would be geographic. Instead of using all 15 last-mile fulfillment stations inside New York City, Amazon could organize deliveries from facilities beyond the city boundary. Drivers, warehouse workers, and delivery companies would then operate from a different network of sites and contracts.

The article does not confirm that Amazon has chosen this plan or explain how deliveries would change for customers. It does show that relocation is considered credible by people close to the delivery businesses. If used, it could remove city warehouse jobs and weaken the position of the current New York delivery partners.

Direct employment means Amazon itself hires the drivers and is their employer. Independent contracting means separate delivery companies hire the drivers and perform Amazon delivery work under contracts. In New York City, about 5,000 drivers currently work through 40 independent delivery service partners rather than for Amazon directly.

That distinction determines who controls the employment relationship. A direct-employment system would place the drivers inside Amazon’s workforce. The current system places their jobs with smaller businesses, such as DashWave Delivery and WGA Transit, while Amazon organizes the delivery contracts and network.

Companies commonly build networks around contractors because separate businesses can handle local staffing and operations under commercial agreements. The article does not list Amazon’s specific reasons, but it shows the company strongly protects this model: Amazon does not directly employ delivery couriers elsewhere in the United States and has warned of closures if New York requires a different structure.