But what you described isn't a "problem" on it's own. Subcontracting is a thing. It's not a bad thing on its own.
You're describing the "what" - you're not describing the "why" is that an issue...
Is "Joe's delivery company" not already required to have liability insurance? Do we think this insurance is not big enough? Should we make it bigger for all delivery companies or do we need to single out Amazon's liability insurance? Do we think that a delivery company delivering the same package for Amazon vs. FedEx vs. Mary's Flowers Inc. vs. NYC Movers Inc. should have a different amount of liability? (e.g., if that delivery driver injures a pedestrian, should we require that NYC Movers Inc. covers fewer costs than Amazon)?
> Subcontracting is a thing. It's not a bad thing on its own.
I wouldn't say subcontracting is a bad thing always. It depends on reason for subcontracting and in this case, I'd call it bad since subcontracting is clearly to avoid liability for what is critical business function.
>Is "Joe's delivery company" not already required to have liability insurance?
Yes they are. It is enough? Not always. States are always trying to balance allowing protecting general public but not strangling small businesses. It doesn't always work out.
>Do we think that a delivery company delivering the same package for Amazon vs. FedEx vs. Mary's Flowers Inc. vs. NYC Movers Inc. should have a different amount of liability? (e.g., if that delivery driver injures a pedestrian, should we require that NYC Movers Inc. covers fewer costs than Amazon)?
This law would impact all those companies if they move their drivers into subcontractor. Amazon is getting called out because they are BIGGEST users of this system but no, they are not only ones.