NEW YORK — Amazon has warned it could move its delivery operations out of New York City if a labor initiative backed by Mayor Zohran Mamdani is successful, a proposal that has sparked debate about workers' rights, business costs, and the potential economic consequences for the city.
The measure aims to change the hiring model the company uses for its deliveries. Currently, thousands of delivery drivers work through more than 40 small subcontracted companies, rather than having a direct employment relationship with Amazon.
If the legislation passes, the company would have to hire these workers directly, which would entail significant changes to its operational structure and how it organizes its delivery services.
Among the main concerns expressed by critics of the initiative is the potential impact on local economic activity.
According to estimates cited regarding the proposal, the changes could lead to the closure of up to 15 distribution centers and put more than 5,000 jobs at risk.
Amazon maintains that the modifications could increase its costs and affect the viability of maintaining its current delivery model within the city.
Another point of contention is the potential increase in delivery costs.
A study funded by Amazon estimates that New York City households could face additional expenses of up to $664 per year if the costs associated with package delivery increase.
