Cookies
We use essential cookies for authentication and security. With your permission, we also use analytics to improve the product.Learn more
Amazon's Delivery Dilemma

Amazon's Delivery Dilemma

Feb 16, 20262 min readFreightWaves

In a move that could have significant implications for New York City's delivery companies, a Teamsters-led rally on the steps of city hall marked the reintroduction of a bill that would require final mile delivery companies like Amazon to be licensed by the city. The proposed Delivery Protection Act aims to protect workers in the last-mile delivery industry, but its scope and potential impact are still unclear.

["The bill's primary sponsor, Democrat Tiffany Caban, has introduced the legislation for the second time, with only minor changes from its previous version. Despite having 41 co-sponsors out of a City Council of 51 members last year, the bill failed to receive a committee hearing before the council's term ended in December 2025.", ["The rally at city hall featured speakers who spoke about the demands of the job and the need for better working conditions. Jerome Sloss, a driver with a New York-area Direct Service Provider (DSP), said that Amazon continues to 'grind drivers into the dust' with its unrealistic expectations and policies. He also highlighted the mental and physical health toll of the job.", ["The Delivery Protection Act would require delivery companies to be licensed by the city's Department of Consumer and Worker Protection, which could lead to a pattern of practice of violations being denied or licenses revoked if found. The bill applies to 'operators of certain warehouses and storage facilities from which goods are delivered to final consumers in the City.'", ["However, the definition of a company impacted by the law is tricky and raises questions about independent contractor status and joint employer status. The legislation would apply to DSPs operating out of Amazon warehouses, but it's unclear whether these drivers are truly independent or simply an extension of Amazon.", ['The Teamsters and Amazon have been locked in a long-standing battle over independent contractor status and the issue of who is a joint employer. The question remains: is an independently-owned DSP operating out of an Amazon warehouse truly independent or not?', ['A coalition of business groups, including chambers of commerce and logistics companies, has come together to oppose the bill. They argue that it would drive businesses out of the city, leading to job losses, higher prices, and increased congestion.', ["The proposed law may have far-reaching implications for the entire logistics industry, with potential national consequences. If Amazon is found to be a joint employer with DSPs, it could make it easier for the city to regulate the company's practices.", ["A recent court case in California, Flowers Foods, may also impact New York City's decision on the Delivery Protection Act. The Supreme Court will hear oral arguments on March 25, which could determine whether final mile delivery drivers are part of interstate commerce and whether disputes with their employers can be litigated in court."]]]]]]]]

EazyInWay Expert Take

The proposed law may have far-reaching implications for the entire logistics industry, with potential national consequences.

Share this article
Source: FreightWaves

More in Trucking