CLAT Exam  >  CLAT Questions  >  Directions: Kindly read the passage carefully... Start Learning for Free
Directions: Kindly read the passage carefully and answer the questions given beside.
There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.
Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.
This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.
Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.
The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms,  something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.
ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.
The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.
Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.
Q. What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?
  • a)
    Lack of accessibility to customers.
  • b)
    High commissions imposed by the apps.
  • c)
    Inefficient delivery drivers.
  • d)
    Limited food options.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Directions: Kindly read the passage carefully and answer the questions...
Main Issue Faced by Restaurants
The primary concern for restaurants using food delivery apps like Swiggy and Zomato is the high commissions imposed by these platforms. Here’s a detailed breakdown of this issue:
High Commissions
- Financial Burden: Restaurants are required to pay substantial commissions to these delivery apps, often cutting deeply into their profits. These commissions can range significantly and affect the overall sustainability of the business.
- Protests from Restaurant Owners: The imposition of high fees has led to widespread dissatisfaction among restaurant owners, prompting them to voice their concerns and seek better terms of engagement.
Limited Control and Negotiation Power
- Dependency on Platforms: Many restaurants feel trapped due to their reliance on these dominant platforms for customer reach and delivery logistics. This dependency diminishes their negotiating power regarding commission rates and contractual terms.
- Return to Platforms Despite Issues: Even after opting out due to dissatisfaction with commission rates, many restaurants return to these platforms for the extensive customer base and visibility they provide, indicating the challenges they face in balancing costs and access.
Potential Alternatives with ONDC
- Emerging Solution: The introduction of the ONDC platform presents a promising alternative. It allows restaurants to bypass traditional delivery apps, potentially leading to lower costs and better negotiation capabilities with third-party delivery services.
- Empowering Restaurants: By facilitating direct communication between consumers and restaurants, ONDC aims to enhance competition and provide restaurants with more autonomy over their operations and pricing strategies.
In summary, the high commissions from food delivery apps pose a significant challenge for restaurants, influencing their operational decisions and profitability.
Free Test
Community Answer
Directions: Kindly read the passage carefully and answer the questions...
The passage mentions that Swiggy and Zomato impose high commissions on restaurants using their platforms, which has led to protests from restaurant owners.
Explore Courses for CLAT exam

Top Courses for CLAT

Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer?
Question Description
Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?a)Lack of accessibility to customers.b)High commissions imposed by the apps.c)Inefficient delivery drivers.d)Limited food options.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.
Explore Courses for CLAT exam

Top Courses for CLAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev