Michael Wright
Executive Director
Customized Logistics and Delivery Association
Legislation aimed at Amazon’s delivery model is beginning to raise much broader questions about the future of outsourced final-mile delivery.
For months, CLDA has been closely following New York City’s Intro 0518-2026, a proposal that could fundamentally change the relationship between businesses, warehouses and the third-party delivery companies they rely on.
Now, a similar fight is developing more than 700 miles away.
Chicago’s Delivery Protection Act, Ordinance O2025-0018778, is scheduled for a subject-matter hearing before the Chicago City Council on September 15. Like the New York proposal, supporters have framed the measure largely around Amazon and its Delivery Service Partner model. But the language and potential impact extend well beyond a single company. The proposal would regulate last-mile delivery facilities and restrict subcontracted delivery arrangements. The Teamsters, which are advocating for passage, similarly describe the Chicago proposal as requiring licenses for last-mile delivery facilities and prohibiting certain subcontracting practices. Read more at: (PublicNow) (open link in new tab)
For CLDA members, that distinction matters.
This is bigger than Amazon
It is easy to hear “Amazon DSP legislation” and assume these proposals only affect one very large retailer.
That is not what concerns CLDA.
The final-mile industry is built around business-to-business partnerships. Retailers, healthcare systems, manufacturers, distributors, e-commerce companies and countless other shippers rely on experienced third-party carriers to perform delivery work they either cannot or do not want to operate internally.
New York’s Intro 518, as currently written, could significantly restrict that model by requiring certain warehouse and delivery functions to be performed by employees of the last-mile facility operator rather than by a third-party delivery company. As CLDA has previously explained, that can create problems even for delivery companies whose drivers are already W-2 employees. (CLDA)
Chicago raises many of the same concerns. The draft ordinance discussed by CLDA’s Government Affairs Committee would potentially require workers serving certain last-mile warehouses to be employees of the warehouse owner or operator while establishing additional licensing, recordkeeping, safety, bonding and fleet requirements.
The practical question for our industry is therefore much larger:
Should a shipper be prohibited from contracting with a legitimate, professional delivery company simply because a city decides that the delivery function must be brought in-house?
For CLDA, that is where these proposals become particularly concerning.
New York remains an active battleground
As of CLDA’s September 3 Government Affairs Committee meeting, Intro 518 had not yet been placed on the September New York City Council calendar. The committee heard that significant pressure continues on both sides of the issue and that preventing a vote during the current session remains an important objective.
CLDA continues to support the New York Delivers Coalition, a group of delivery service partners, businesses and workers opposing Intro 518 and advocating for an approach that protects workers without dismantling the city’s existing last-mile delivery network. The coalition says proposed restrictions could put local delivery businesses and thousands of jobs at risk.
The coalition is also expanding its grassroots outreach to businesses and individuals that rely on the delivery network, including tools that allow participants to contact New York City Council members directly. CLDA is encouraging members—particularly those doing business in New York—to participate.
Take Action with the New York Delivers Coalition (Open link in new tab)
Chicago shows why this matters nationally
One of CLDA’s warnings about Intro 518 has been that a policy adopted in one major market can quickly become a model for others.
Chicago is an important reminder that this concern is not theoretical.
The Chicago Delivery Protection Act is now headed for a September 15 subject-matter hearing, with organized labor actively urging the City Council to advance it.
During CLDA’s Government Affairs Committee discussion, members also raised the possibility that similar concepts could eventually appear in other large cities. Reports concerning Los Angeles and San Francisco remain unconfirmed, but the emergence of Chicago after New York reinforces the need for national monitoring.
That is particularly important for companies operating in multiple jurisdictions.
Imagine running delivery operations in five cities and having five different rules governing whether your customer is legally permitted to outsource its deliveries.
Or imagine a healthcare provider, retailer or manufacturer being told that it must build an internal delivery workforce even though an established local carrier already provides the service safely, professionally and efficiently.
These are not simply worker-classification questions. They go to the heart of whether businesses can continue using specialized third-party delivery providers at all.
Worker protections and outsourced delivery are not mutually exclusive
CLDA supports responsible standards for worker safety, insurance, training, compliance and ethical business practices.
Those objectives do not require eliminating legitimate business relationships.
There is an important distinction between addressing bad actors and creating a regulatory structure that prevents responsible companies from providing outsourced delivery services altogether.
Our industry should be part of the conversation about improving safety and accountability. But policymakers should also understand that final-mile delivery is an interconnected network of shippers, carriers, independent businesses, employees and drivers.
Changing one part of that system can have consequences throughout the entire supply chain.
CLDA is watching what comes next
The Government Affairs Committee will be closely monitoring the September 15 Chicago hearing, including any amendments or exemptions that emerge.
We will also continue working alongside the New York Delivers Coalition to oppose Intro 518 and educate policymakers about its potential impact on legitimate delivery companies.
And these are only two of the issues CLDA is monitoring around the country.
Through our Logistics Legislation Monitor, members can follow state and federal developments affecting independent contractors, worker classification, freight brokers, employment law, delivery operations and other issues that can directly affect their businesses.
View the CLDA Logistics Legislation Monitor
The final-mile industry moves quickly. Increasingly, the policies governing it do too.
CLDA will continue working to make sure our members know what is coming and that our industry has a voice before those policies become law.
