A Democratic-socialist policy backed by Mayor Zohran Mamdani could cost New York City households an extra $664 a year, Amazon warned Fox News Digital, as a union-backed push to require delivery companies to directly employ certain workers could drive some delivery operations out of the five boroughs.

"We've made clear to every Council member: we're not looking to leave New York City and our goal has been — and continues to be — to work collaboratively with them," an Amazon spokesperson told Fox Digital. "Our priority is to continue creating good jobs and supporting our employees in New York City. We're equally committed to the local small business partners who work with us every day to provide fast, reliable delivery for New Yorkers."

Amazon has publicly opposed Intro 0518, known as the Delivery Protection Act, which was introduced by Democratic-socialist City Councilmember Tiffany Cabán and backed by Mamdani. The measure would require operators of certain last-mile facilities to directly employ workers performing core services, including delivery, while restricting subcontracting for that work — a structure that targets the contractor model Amazon uses across its delivery network. Under its Delivery Service Partner program, launched in 2018, Amazon contracts with independent local businesses that employ drivers and operate delivery routes using Amazon-branded vans, rather than employing those drivers directly.

"Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting," Mayor Mamdani's office said in a press release.

"Through delivery subcontractors, corporations dictate hiring standards, delivery routes, steep productivity quotas and workplace expectations while denying that the workers making those deliveries are employees," it continued. "The result is a system that leaves workers vulnerable and corporations free to avoid accountability for reckless conditions on city streets."

The dispute reflects a broader national debate over how gig-style and subcontracted delivery workers should be classified and regulated, with cities and states weighing mandates that extend employer obligations to last-mile logistics networks that have expanded sharply alongside e-commerce growth.

Amazon cited an analysis by consulting firm AKRF, commissioned by the Five Borough Jobs Campaign, that projected the legislation could increase delivery costs for consumers.

"This bill would drive delivery costs up by forcing facilities farther from customers — increasing per-route travel time, fuel, and labor while reducing packages delivered per route — with full relocation modeling a 267% cost increase per package for deliveries currently handled by NYC facilities, service-level declines of 10 to 21%, and an additional $664 in annual delivery costs passed through to every New York City household," the spokesperson told Fox News Digital.

"As written, this legislation would put more than 40 [delivery service partners] and their 5,000-plus employees at risk — while likely resulting in slower, more expensive delivery for millions of New York City customers," they added. "We're evaluating all options to try and limit this impact, including the potential relocation of operations and delivery facilities outside of New York City."

That could mean moving outside the five boroughs to New Jersey, Long Island or Westchester to avoid city licensing mandates.

The New York Delivers Coalition, which joins Amazon in opposing the bill, said many of its members are small business owners, minorities and first-generation Americans who built companies in New York City.

"Many of the small business owners in this coalition are minorities and first-generation Americans who beat the odds to become entrepreneurs in New York City," the group told Fox Digital. "We built our businesses from the ground up in our own communities, often starting with ourselves or family members as our first employees. Today, many of us employ more than 100 New Yorkers, including people who have faced barriers to traditional employment and have built careers and financial security through these jobs. Intro 0518 puts all of that — the businesses we built, the jobs we created, and the futures our employees are building — at risk."

"We are small business owners in New York City, and we want the City Council to understand that many last-mile delivery companies are real, independent small businesses that hire from the communities we deliver in. We hire our own W-2 employees, manage our own teams and payroll," the coalition said. "Large corporations like Amazon have the resources to adapt to sweeping new mandates. It's the independent small businesses they contract with that would be forced to shut down, putting the jobs of over 10,000 local New Yorkers at risk."

Neither the New York City Council, Cabán nor Mayor Mamdani's office immediately returned Fox News Digital's request for comment.

"We've invited every member to visit our delivery stations and meet DSPs and their employees," Amazon said. "We hope Councilmember Cabán will do so — we've asked her directly — but haven't gotten a response yet."

"Our message is simple: come see how our businesses actually work. Visit one of our facilities, ride along on a delivery route, and talk directly to our employees about their jobs and what's at stake," the coalition said. "We want a seat at the table before decisions are made that could put our businesses and employees out of work."

The bill's path now rests with the City Council, where its fate — and whether Amazon follows through on evaluating relocations — will shape how last-mile delivery is structured in the nation's largest city.