Food delivery apps will confront a long-lasting cap on the commissions they can charge restaurants under a bill passed by the New York City Council late Thursday, sending the shares of Grubhub and DoorDash falling.

The bill would restrict the sum that apps can charge restaurants to 15 percent of food orders for delivery services, 5% for promoting and other miscellaneous services and 3 percent for credit card processing fees.

Whenever endorsed into law, the New York City council bill would likewise require food delivery apps to apply for operating licenses, which would be audited like clockwork.

Shares of Grubhub’s parent company Just Eat Takeaway were down about 5.6 percent on the news early in the day Friday, while DoorDash shares had fallen 2.4 percent, as per MarketWatch data.

Shares of Uber, which has a more expanded business and may thusly be less presented to the bill, were up around 1%.

Mayor Bill de Blasio has 30 days to sign the legislation, which would produce results 120 days in the wake of becoming law. His office didn’t promptly answer to a solicitation for input.

The bill would make long-lasting an impermanent cap that was first executed in June 2020 to assist restaurants with enduring the pandemic after numerous restaurants griped apps were charging fees as high as 30%.

In articulations to Reuters, Grubhub hammered the bill as “egregiously unconstitutional,” while DoorDash called it “unnecessary and unconstitutional.”

Uber representative Harry Hartfield declined to remark.

The New York legislation follows a comparable long-lasting cap on delivery fees passed by San Francisco recently.

Grubhub has additionally taken fire from legislators and café proprietors over a disputable telephone delivery framework that unreasonably charged eatery proprietors for orders that never occurred.

The company at long last dumped the disputable practice this Monday, over two years after media initially gave an account of the issue in 2019. New York City Council individuals had been demanding that Grubhub discount all “mistaken telephone order charges” to restaurants and took steps to “explore legislative solutions if the company neglects to act.”