Ola Electric acknowledges getting CCPA notice on consumer complaints | Company News

Ola Electric, a prominent player in the electric scooter market, has found itself under scrutiny from the Central Consumer Protection Authority (CCPA) due to a staggering 9,948 grievances reported by customers over the past year. The issues range from delayed deliveries and faulty vehicles to misleading advertisements and poor customer service. In response to the show-cause notice from the CCPA, the company has stated that it will file a reply within the mandated 15-day period and emphasized that this situation “wouldn’t impact its financial, operational, or other business activities.”

The recent notice comes on the heels of a social media exchange between Ola Electric’s founder Bhavish Aggarwal and stand-up comedian Kunal Kamra, which raised eyebrows and spotlighted ongoing concerns about the company’s customer service. Following the notice, Ola Electric’s stock experienced a decline, tumbling over 8% on Monday to close at Rs 90.82 per share.

This isn’t the first challenge for Ola Electric. In the previous year, the company, along with other industry players like Ather Energy and Hero MotoCorp, faced scrutiny for violating pricing norms under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. They had to reimburse around Rs 300 crore to consumers after being accused of breaching pricing limits by billing for chargers separately.

The CCPA’s notice underscores a troubling pattern of service deficiencies and unfair trade practices under the Consumer Protection Act, 2019. Of the 9,948 complaints, many highlighted slow service, delayed deliveries, and a lack of transparency regarding vehicle performance and features. The growing dissatisfaction among customers, combined with increasing competition, has significantly impacted Ola Electric’s market position. Once commanding a 52% share of the electric two-wheeler market in April, it has now plummeted to just 27% by September.

Moreover, Ola Electric’s market capitalization has dropped below $5 billion, a stark contrast to its IPO valuation of over $7 billion. As the company navigates these turbulent waters, Aggarwal has publicly committed to expanding the service network to address consumer grievances. However, the challenge ahead is steep, with competitors like Bajaj, TVS, and Ather gaining ground in an increasingly competitive landscape. How Ola Electric responds to these challenges will be crucial in determining its future in the market.

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