Ola Electric Faces Government Scrutiny Amid 10,000 Customer Complaints

Ola Electric Under Fire

Ola electric scooters are on display ahead of the Initial Public Offer press conference.

India’s Central Consumer Protection Authority has received an unprecedented 10,000 complaints against Ola Electric over the past year. The agency has issued a show cause notice to the SoftBank-backed e-scooter manufacturer, demanding an explanation for the surge in customer grievances.

After a promising market debut in August, Ola's shares have plummeted nearly 40% as customer dissatisfaction with their after-sales service has escalated, leading to a flood of complaints on social media.

Complaints Overview

According to Nidhi Khare, the consumer affairs secretary, complaints have spanned issues like delayed services, unsatisfactory support, and inaccurate invoices. The agency's intervention highlights the magnitude of the issue, with Khare stating, "You cannot leave it to individual consumers to fight their way out."

The complaints have raised concerns about Ola's professional conduct, affecting a large number of consumers. The company, which holds a 27% market share in India's e-scooter market, has not yet responded to the notice.

Service Challenges

Recent reports from HSBC analysts indicate that many Ola service hubs are overwhelmed by service requests. A previous investigation revealed significant backlogs at multiple service centers, with some locations having over 100 scooters waiting for service, many neglected and covered in bird droppings.

This situation puts Ola Electric's reputation and customer service capabilities under significant scrutiny as they navigate these challenges.