Amazon deliveries could get pricier and slower under NYC bill

Amazon deliveries could get pricier and slower under NYC bill
Amazon could end up closing its city-based distribution centers and relocating outside the city to get around the bill. ©Image Credit: Unsplash / Daniel Mainye

If you place frequent orders on Amazon and live in NYC, prices could be going up. NYC legislators are considering a bill that would require Amazon to hire thousands of employees from the five boroughs, which could increase costs for customers.

Your bill could go up by hundreds of dollars per year

With prices on the rise just about everywhere, the last thing you want to read is that Amazon could soon cost you more to use.

If the new legislation passes, it could translate to you spending hundreds more per year on just about anything you order on Amazon.

“This bill lights a ton of dynamite under the delivery industry,” said an industry source who works with Amazon and its logistics providers. 

What the bill would require

As it stands, Amazon uses a delivery model that relies on over 40 subcontractors in NYC. These include Amazon-branded vans and e-bikes.

There are more than 5,000 employees who work with these subcontractors.

The bill, called the Delivery Protection Act, would require Amazon to hire thousands of employees.

Amazon could move its distribution centers

An economic impact analysis showed that one outcome could be Amazon relocating all its 10 city-based distribution centers to get around the rules of the potential new bill.

Amazon spokesperson Kelly Nantel confirmed that the legislation “would also force us to consider relocating delivery operations outside of the city.”

This means employees would lose their jobs or need to work outside the city at relocated distribution centers. It also means that deliveries would take longer to arrive and cost more money overall.

The bill does have one group of supporters, though, and that's the Teamsters union. The union has been trying to organize Amazon workers for several years.

Consumers may be left footing the bill

Depending on what happens with the legislation, it could be you, the consumer, who ends up footing the bill.

Sources: New York Post

Read more