Uber and Lyft have been at the center of a debate surrounding California's landmark law that could force companies to reclassify independent contractors as full-time employees and goes into effect on Wednesday. But industry experts say the biggest loser may actually be food delivery.

The bill passed in the California state Senate and Assembly in September and was signed by Gov. Gavin Newsom's shortly after. Though the bill was created in part to go after Lyft and Uber, both of which have seen driver protests for higher wages and better benefits, the legislation could have unintended consequences for more than just ride-hailing services, many gig-economy experts have said.

"I do think there will be some companies where this will result in their demise," Micah Rowland, the chief operating officer of the gig-economy recruiting tool Fountain, told Business Insider after the ballot measure passed. "Companies that are totally reliant on gig labor are going to find it more difficult to make the argument that Uber is trying to make that gig workers are not essential, so they will have to make the transition."

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Rowland said industries with low margins, like food delivery, were particularly vulnerable to changes like those in the law. Customers are unlikely to support increased delivery fees, so companies would have to pass any increased labor costs on to restaurants they partner with, which also operate on razor-thin margins. Rowland said from there, the industry could easily fold into itself.

"The response pathways will break down by company size," Rowland said. "I would normally say to break it down by profitability, but none of them are profitable. It will come down to who can and will expend resources to reverse this decision."

Many companies are planning to do just that. According to previous reports, Uber, Lyft, and the food-delivery startup DoorDash committed to sponsoring a $90 million ballot initiative in which voters could reverse the decision in 2020 but has since scaled back public efforts to get the law back in front of voters in November. DoorDash did not respond to Business Insider's request for comment at the time.

Another unforeseen casualty could be more traditional industries that have relied on contract workers, such as construction and landscaping. As if on cue, Vox Media announced on December 16 it was cutting "hundreds" of freelance roles ahead of the law's implementation on January 1, CNBC reported.

Shawn Cadeau, the chief revenue officer at the contractor-focused business-management-software creator Jobber, said in September that it's best for small independently run businesses when contractors were able to accept the jobs that worked best for them.

Rowland agreed and said these companies were officially on notice and that other states were waiting to see how the law plays out.

"When companies make the change from contractors to employees, other states will be watching closely to see what the law's impact is to make sure it works as intended," Rowland said.