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Industry brief · · 6 min read

October 2026 Last-Mile Brief: NYC's Delivery Protection Act, USPS Holiday Prices and DDU Access

Three developments delivery partners, couriers and parcel shippers should track this peak season — with dates, sources and what each one means for how parcels get sorted.

Quick answer: New York City is weighing the Delivery Protection Act, which would require Amazon and others to directly employ delivery drivers — reported as effectively ending the delivery-contractor model in the city; as of October 16, 2026 it had not been called for a vote. USPS temporary holiday prices run from October 4, 2026 to January 17, 2027, adding $0.40–$2.35 per Parcel Select piece by weight. And USPS has opened its 18,000 delivery units to last-mile bids, with service starting in Q3 2026.
1 · New York City

NYC Delivery Protection Act

The Delivery Protection Act, sponsored by Council Member Tiffany Cabán, would require Amazon and other companies such as FedEx to directly employ delivery drivers and would set safety, training and labor standards. The Bronx Times reports it would also create a licensing system for distribution facilities and would effectively eliminate Delivery Service Partner (DSP) contractors in the city. A similar bill is under consideration in Chicago.

  • Status (October 16, 2026): supporters were reported to hold a supermajority on the City Council, but the bill had not been called for a vote.
  • Positions: Mayor Zohran Mamdani supports the bill; Council Speaker Julie Menin does not, according to Labor Notes. Amazon has said it would consider relocating warehouses outside the city.
  • DSP owners: some Bronx DSP owners oppose it. “If this bill goes through, small businesses will be destroyed, jobs will be eliminated,” Rudy Cazares, CEO of Cazar Logistics, told the Bronx Times.

Sources: Bronx Times, Oct 16, 2026 · Labor Notes, Oct 7, 2026

2 · Federal

NLRB: Amazon Is Not a Joint Employer of DSPs

In June 2026 the National Labor Relations Board found that Amazon is not a joint employer with its Delivery Service Partners, according to Labor Notes. About 4,500 DSPs operate nationally. The NYC bill would change that relationship locally by requiring direct employment, which is why its outcome matters for every contractor-run station in the city.

Source: Labor Notes, Oct 7, 2026

3 · USPS

USPS Temporary Holiday Prices: October 4, 2026 – January 17, 2027

USPS filed temporary price increases for Priority Mail, USPS Ground Advantage, Priority Mail Express and Parcel Select, effective 12 a.m. CT on October 4, 2026 and ending 12 a.m. CT on January 17, 2027. Commercial Parcel Select increases apply to all entries:

WeightParcel Select (commercial)Ground Advantage commercial, zones 1–4
0–3 lb+$0.40+$0.40
4–10 lb+$0.50+$0.65
11–25 lb+$0.80+$1.05
26–70 lb & oversized+$2.35+$3.15

Per piece. Source: USPS newsroom, Aug 25, 2026. DDU-specific rates are in the PRC filing and Postal Explorer.

4 · USPS network

USPS Opens Its Delivery Units to Last-Mile Bids

In January 2026 USPS launched a bid platform for access to its last-mile network: its 18,000 delivery destination units (DDUs), for same-day or next-day service. Accepted bids become negotiated service agreements; winners were to be notified in Q2 2026, with service beginning in Q3 2026. FEDweek reported the move came as contract renewal talks with Amazon stalled.

More shippers injecting directly at delivery units means more parcels that have to be split by delivery unit — and often by 5-digit ZIP — before the truck leaves. See sorting for USPS Parcel Select DDU entry.

Source: FEDweek, Jan 22, 2026

5 · What it means

What It Means for Sorting Operations

Keep commitments flexible

With NYC's contractor model under review, long equipment purchases and leases tied to one station carry more risk. Pay-per-parcel sorting has no equipment to buy, and systems are removable.

Watch cost per parcel

Holiday prices and peak surcharges raise the cost of every parcel. Driver minutes spent hand-sorting add to it — estimate yours.

Plan for ZIP-level splits

Direct DDU injection pushes sorting by delivery unit and ZIP upstream. A sorter maps each chute to a unit or ZIP.

This brief summarizes public reporting. It is not legal advice and takes no position on pending legislation.

FAQ

Questions About This Brief

What is the NYC Delivery Protection Act?

A New York City Council bill sponsored by Council Member Tiffany Cabán that would require Amazon and other companies such as FedEx to directly employ delivery drivers and set safety, training and labor standards. The Bronx Times reports it would effectively eliminate Delivery Service Partner contractors in the city and create a licensing system for distribution facilities.

Has the Delivery Protection Act passed?

Not as of October 16, 2026. Supporters were reported to hold a supermajority on the City Council, but the bill had not been called for a vote.

When do the USPS 2026 holiday prices apply?

From 12 a.m. CT on October 4, 2026 to 12 a.m. CT on January 17, 2027, pending regulatory review.

How much do Parcel Select prices rise for the holidays?

Commercial Parcel Select rises by $0.40 (0–3 lb), $0.50 (4–10 lb), $0.80 (11–25 lb) and $2.35 (26–70 lb and oversized) per piece, for all entries.

Can any company bid for USPS last-mile delivery?

USPS opened a bid platform in January 2026 for access to its 18,000 delivery destination units for same-day or next-day service. Accepted bids become negotiated service agreements, with service starting in Q3 2026.

Is Amazon a joint employer of its DSPs?

In June 2026 the National Labor Relations Board found that Amazon is not a joint employer with its Delivery Service Partners, according to Labor Notes.

Sorting by hand before routes this peak?

Apply for a 30-day station pilot. Terms in writing, pay per parcel from $0.10, removable.

Also new: Amazon Relay expects 300,000 loads a week · Earlier: Q4 2026 Peak Season Brief · Amazon DSP driver raise 2026 · Sorting in New York · All news

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