Markets 
A proposed law may change how Amazon, FedEx and others deliver packages — and it’s not good news for New Yorkers.
For some time now, Walmart, Amazon, Target, FedEx and more have implemented last mile delivery — the final step of the shipping process where packages go from a local hub to one’s doorstep, which is heavily reliant on third parties, such as Delivery Service Partners (DSPs).
In other words, those drivers delivering packages across NYC from an Amazon-marked truck and uniform aren’t technically employees of the company.
However, a new NYC law, the Delivery Protection Act, might change that.
If passed, it would basically ditch the middleman, as companies would be banned from outsourcing third-party contracts for the final delivery of packages.
As of now, the current delivery process in NYC looks like this: Amazon, DSP, driver, customer. If passed, the law would then switch the process to: Amazon, Amazon employee, customer.
While it may seem like a small switch — it has big implications.
Amazon and others would be forced to pay a truckload of new fees.
Companies would officially be required to directly employ the drivers who deliver packages in NYC; the warehouses that hold the last mile packages would need to have NYC licenses; and drivers would need safety rules and working conditions.
Opponents of the bill fear the changes would mean slower delivery speed and higher shipping prices, which would most likely be passed onto the consumer.
According to testimonies submitted to the city’s Committee on Consumer and Worker Protection, drivers say the changes are needed.
Mayor Mamdani said in a statement the move would “rein in the power of corporate delivery giants like Amazon, hold them accountable for their exploitative business model and make New York City’s streets safer for workers, drivers and pedestrians.”
Calling the bill “common sense,” Mamdani said the legislation would fix worsening traffic safety after studies saw an increase in injury-causing crashes after last-mile facilities opened.
Amazon told The Post that while it is “committed to creating good jobs and supporting thousands of employees in New York City,” the law would raise costs on the consumer as the change would force Amazon to “consider relocating” its delivery options.
“This would likely mean slower and more expensive delivery – deteriorating the experience for millions of customers in New York City,” Amazon said.
The bill is in early stages with the Committee on Consumer and Worker Protection and it’s not clear how quickly the legislation could progress and become law.
Read the full article here
