But those need to parking spaces to they can unload and make deliveries. Manhattan is unlike any European city, it is an 8 x 2 mile island laid out in a grid.
The design is called "Shared Street" and has been difficult to get the community to accept in NYC. I know because we tried. Something about cars going about freely on pedestrian filled roads scares a lot of people.
Well, then create one single lane for cars/taxi/etc through the shared street, limit it to delivery vehicles and busses, and allow parking on the rest.
Pedestrians know they won’t get hurt on the rest, and you don’t lose space.
The area is filled with Mom and Pop shops and these are typically hit the hardest.