NYC Delivery Protection Act Hearing: Amazon DSPs Face Potential Closure - News and Statistics

Apr 11, 2026

A hearing on proposed legislation that could force the closure of Amazon‘s direct service providers in New York City was held at City Hall. According to FreightWaves, the hearing before the Committee on Worker and Consumer Protection included demonstrations by supporters and opponents.

The proposed Delivery Protection Act has just over 30 co-sponsors in the 51-member council. An earlier version introduced near the end of the 2025 session had more than 40 co-sponsors but expired when the year ended and a new Council was seated.

Key provisions of the act include a requirement for delivery companies to be licensed by the city’s Department of Consumer and Worker Protection, which could deny or revoke licenses based on conduct standards. Another provision would prohibit companies that operate warehouse facilities from contracting out their work to third parties, a model central to Amazon’s DSP network.

The bill’s sponsor is Council member Tiffany Caban, with the Teamsters union as a major backer. A rally in February was attended by over 100 Teamsters and DSP workers. A separate protest occurred in September regarding DSP closures in Queens.

During the hearing, a panel featuring presidents of the Brooklyn, Bronx, and Manhattan chambers of commerce shifted the discussion toward the potential impact on workers and small businesses if DSPs close. The Brooklyn Chamber president argued the licensing requirement was a secondary issue, stating the direct hire mandate would put an entire economic subsector out of business. He expressed doubt that courts would force a company to hire a specific classification of workers.

Some council members on the committee, who had previously spoken positively of the legislation, appeared to engage with these concerns. One member asked for suggestions to reach a compromise that protects workers without annihilating small business owners. The panel suggested eliminating the direct hire mandate and alternatively regulating worker quotas. A city-wide training regime for drivers was also discussed.

Testimony from a DSP owner highlighted the financial stakes for small business operators, noting significant upfront capital, loans, and personal guarantees required to run such companies. He characterized the proposed law as draconian and said it would force his business to shut down.

Amazon submitted testimony stating that safety concerns about its operations were a misconception, citing global safety improvements since 2019. The company also stated it supports thousands of employees in the city, with over two thousand working at local delivery facilities across all five boroughs.

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