NYC Bill With 30 Backers Would Ban Amazon’s DSP Subcontracting And Force Direct-Hires
The proposed Delivery Protection Act, backed by 30 NYC Council members, would bar warehouse-based carriers, including Amazon, from subcontracting to DSPs and require licensing revocable over conduct. Its direct-hire mandate could shut all local DSPs in New York City and force Amazon to rehire delivery workers.
1. Legislative Proposal Details
The Delivery Protection Act, currently supported by 30 of 51 council members, prohibits any warehouse-based delivery company from subcontracting work to third-party DSPs. It mandates a city license governed by the Department of Consumer and Worker Protection, granting revocation power for conduct breaches and requiring rehiring of displaced workers under existing terms.
2. Impact on Amazon’s DSP Model
Amazon relies on hundreds of independent DSPs in New York City to fulfill last-mile deliveries; the bill’s direct-hire clause would dissolve these subcontractor relationships and compel Amazon to absorb roughly 1,000 delivery workers directly onto its payroll. This shift could raise labor costs, alter union negotiations and disrupt Amazon’s local logistics network.
3. Stakeholder Reactions
Chamber of commerce leaders warn the direct-hire requirement could decimate a vital small-business sector, while Teamsters back the measure as a path to improved worker protections. DSP operators and some delivery staff have held rival rallies, reflecting deep divisions over potential job security and operational upheaval.