The company’s latest push is aimed at reversing that trend by pairing immediate operational fixes with longer-term structural changes. File.
| Photo Credit: Reuters

A file image of Ola Electric
| Photo Credit: Reuters

A viral video on social media shows a frustrated man hammering away at his Ola Electric scooter in the middle of a road after the showroom allegedly issued a Rs 90,000 bill to his name. The customer, wearing a white T-shirt and blue jeans can be seen thrashing the e-scooter, laid down in front of the Ola showroom as the passers-by record the incident. “The showroom made a bill of Rs 90,000, the customer got upset and broke the scooter in front of the showroom,” read the video caption.

Social media users slammed Ola for not taking care of its customers who have criticised the services offered by the company in recent months.

“If you will not listen to your customers and fix their problems, you will not succeed in any business,” said one user, while another added: “No consumer should ever face this plight. Most folks buying two-wheelers are either middle-class or lower-middle-class. It is usually their first vehicle and also their lifeline. Sad to see such incidents!”

As of the last update, the video had received over 930,000 views and hundreds of comments from angry users. However, Ola had not issued any statement, clarifying its position.

शोरूम ने 90000 का बनाया बिल ग्राहक ने परेशान होकर शोरूम के सामने ही तोड़ दी स्कूटी
– सोशल मीडिया पर वायरल हुआ वीडियो.#ola#OlaScooter#viralvideo#ViralVideos#socialmedia#Nedricknews@OlaElectricpic.twitter.com/7JPPtRSf9E

— Nedrick News (@nedricknews) November 22, 2024

Notably, in September earlier this year, a 26-year-old man was arrested for allegedly setting fire to an Ola Electric showroom in the southern state of Karnataka, over the unsatisfactory servicing of a recently-purchased Ola e-scooter. The accused, identified as Mohammad Nadeem, started facing servicing issues, a few days after purchasing the scooter, which led him to torching the showroom.

Video: Ola Showroom Set On Fire In Karnataka By Disgruntled Customer

Ola to lay off employees

Over the last few months, several reports have emerged, suggesting that the Ola service centres face a significant backlog. The staff is facing difficulty in dealing with the volume of complaints. While the issues mount, Ola is set to lay off at least 500 employees as part of a restructuring exercise, according to an IANS report.

Led by Bhavish Aggarwal, Ola is aiming to boost its operational efficiency by reducing redundancies and “drive profitability”, through the sackings. The electric vehicle (EV) company reported a 43 per cent increase in net loss at Rs 495 crore in the July-September period (Q2 FY25), from Rs 347 crore in the previous quarter (Q1 FY25).

The two-wheeler company also saw its revenue slump 26.1 per cent to Rs 1,214 crore (on-quarter) from Rs 1,644 crore in the first quarter of this fiscal.

New Delhi:

Ola Electric, mired in controversies amid a government probe and mounting losses, is set to lay off at least 500 employees as part of a restructuring exercise.

The Bhavish Aggarwal-led electric vehicle (EV) company is trying to boost its operational efficiency by reducing redundancies and “drive profitability”, according to multiple reports. The restructuring exercise will impact employees from several departments, the reports added.

According to an Inc42 report, citing sources, “the aim is to cut expenses to drive profitability and improve margins. There’s no set time period for the completion of the exercise”.

Ola Electric did not immediately comment on layoffs.

The company reported a 43 per cent increase in net loss at Rs 495 crore in the July-September period (Q2 FY25), from Rs 347 crore in the previous quarter (Q1 FY25).

The electric two-wheeler company also saw its revenue slump 26.1 per cent to Rs 1,214 crore (on-quarter) from Rs 1,644 crore in the first quarter of this fiscal. The net loss, however, narrowed on a year-on-year basis.

In the post-quarterly earnings call, Aggarwal said the company’s operating expenses had decreased quarter-on-quarter and that the company will focus on cost efficiencies.

“As we continue to scale distribution, revenue will keep growing while the operating expenses are likely to remain flat or even decline over the next few quarters,” Aggarwal added.

The company also saw its market share plunge to 33 per cent in Q2, down from 49 per cent in the previous quarter.

According to experts, increased competition and service network challenges have impacted Ola Electric’s market dominance.

The shares of Ola Electric continue to slide, more than Rs 38,000 crore worth of investors’ money has been eroded in the company’s stock in just a couple of months.

On Friday, the company’s share was hovering around Rs 67 apiece, way below its market debut price of Rs 76 and more than 56 per cent down from its all-time high of Rs 157.40.

The market cap had reached an all-time high of around Rs 69,000 crore, which has come down to around Rs 31,000 crore.

Several Ola Electric customers have reported problems with software, battery and jammed tyres. The Central Consumer Protection Authority (CCPA) has also ordered a comprehensive probe into the EV company over its consumer complaint redressal practices.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

India’s top product certification agency will investigate e-scooter maker Ola Electric’s deficiency in service standards and product issues, India’s consumer affairs secretary told Reuters on Thursday.

Last month, the Central Consumer Protection Authority (CCPA) sent Ola Electric a notice seeking an explanation from the SoftBank-backed company after the consumer rights agency received an unusually high 10,000 complaints.

Ola, India’s top e-scooter maker, responded that it had resolved 99.1% of the complaints.

After reviewing that response, the CCPA has now asked the Bureau of Indian Standards to conduct a detailed investigation into the matter, consumer affairs secretary Nidhi Khare said on Thursday.

Ola Electric did not immediately respond to a Reuters email seeking comment.

The complaints were mostly for “minor” issues, Ola’s founder Bhavish Aggarwal said on an earnings call last week.

“Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with the software used,” Aggarwal said.

The rising complaints and ensuing regulatory scrutiny have cast a shadow on the e-scooter maker, following its stellar market debut in August.

Ola Electric’s shares are down about 7.6% from their listing price of 76 rupees. On the day, its shares were down about 1%, while auto stocks had risen 0.5%.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Weeks after a war of words broke out between them over the after-sales and service quality of the company’s electric scooters, stand-up comedian Kunal Kamra on Monday accepted Ola founder Bhavish Aggarwal’s job offer but with several conditions. In a post on X, where their debate initially began earlier this month, Mr Kamra said he has “no choice” but to accept Mr Aggarwal’s offer to work with OLA.

“After being tagged thousands of times I anyway feel like I am an OLA employee,” he said.

The OLA boss had invited Kunal Kamra to “come and help” them out after the latter flagged the service centre situation of the company’s electric scooters on October 6.

The argument began when Mr Kamra posted an image on X showing a large number of EV scooters being parked at an Ola service centre.

“Do Indian consumers have a voice?  Do they deserve this? Two-wheelers are many daily wage workers’ lifeline,” the comedian had written.

In response, Bhavish Aggarwal said that it was a “paid tweet”.

“Since you care so much Kunal Kamra, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career. Or else sit quiet and let us focus on fixing the issues for the real customers. We’re expanding the service network fast and backlogs will be cleared soon,” he wrote.

Since you care so much @kunalkamra88, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career.

Or else sit quiet and let us focus on fixing the issues for the real customers. We’re expanding service network fast and backlogs… https://t.co/ZQ4nmqjx5q

— Bhavish Aggarwal (@bhash) October 6, 2024

Now, Mr Kamra said that the OLA can “seal this collaboration” by committing to various “action points”.

“Ola Electric must stand firm in their commitment to solve their service crisis. OLA must commit to completing all scooter repairs within seven business days from service request at authorised service centres,” he demanded.

He also said that for repairs beyond seven days, “customers will first receive either a temporary replacement scooter or daily conveyance reimbursement of Rs 500 until repair completion”.

“Additionally, customers will earn Rs 500 per delayed day (up to Rs 50,000),” the comedian said.

I have no choice but to accept @bhash‘s offer to work with OLA…
After being tagged thousands of times I anyway feel like I am an OLA employee.
OLA can seal this collaboration by committing to the below action points & looking forward to joining. pic.twitter.com/flqOgIkUo6

— Kunal Kamra (@kunalkamra88) October 28, 2024

He also said that every new Ola Electric scooter should be sold with two insurances – one for the vehicle and one for the services.

The service insurance should be free for the customers, Mr Kamra said.

Mr Aggarwal is yet to officially respond to his demands.

Kunal Kamra’s Request To Nitin Gadkari Over Ola Issue

Kunal Kamra on Monday also reshared a post by an X user who alleged that all Ola electric scooters at a service centre in Maharashtra were in “bad condition” and that there were “no qualified engineers or technicians” on-site to look after them.

The comedian requested Union Road Transport Minister Nitin Gadkari to “look at the plight of Indian customers”.

“Minister Nitin Gadkari please look at the plight of Indian customers, their voices aren’t heard. They can’t get to work. They are taking bad loans to solve an issue that is primarily Ola’s responsibility… When will government agencies intervene?,” Mr Kamra wrote.

Minister @nitin_gadkari please look at the plight of indian customers,
their voices aren’t heard.
They can’t get to work.
They are taking bad loans to solve an issue that is primarily Ola’s responsibility…
When will government agencies intervene? https://t.co/nJYapedavI

— Kunal Kamra (@kunalkamra88) October 28, 2024

Last week, Harish Abhichandani, the Chief Financial Officer at Ola Electric, said that 99% of the complaints have been resolved to the “complete satisfaction of the customer as per Ola Electric’s comprehensive redressal mechanism”.

CCPA mandated Ola to issue bills or invoices for all auto rides booked through its platform, citing the absence of such documentation as an “unfair trade practice” under the Consumer Protection Act, 2019. Image for representation.
| Photo Credit: Reuters

The Central Consumer Protection Authority (CCPA) has directed ride-hailing platform Ola to implement consumer-friendly changes, including offering refund options and providing receipts for auto rides, the regulator said on Sunday.

The CCPA, led by Chief Commissioner Nidhi Khare, observed that Ola’s no-questions-asked refund policy only provided coupon codes for future rides, without giving consumers a choice for bank account refunds.

“This (practice) violates consumer rights,” the CCPA said in a statement. “The no-question-asked refund policy cannot mean that the company incentivises people to simply use this facility for taking another ride.”

The regulator also mandated Ola to issue bills or invoices for all auto rides booked through its platform, citing the absence of such documentation as an “unfair trade practice” under the Consumer Protection Act, 2019.

Following the CCPA’s intervention, Ola has implemented several changes, including displaying contact details of grievance and nodal officers on its website, clearly mentioning cancellation policies and fees at the time of booking, adding more options for ride cancellation reasons, and publicizing fare component breakdowns.

The other changes implemented were showing address of both pickup and drop locations to drivers and revised payment cycles for drivers for swift payment.

The CCPA reported 2,061 complaints against Ola from January to October 2024, with top issues including overcharging, refund delays and driver-related problems.

“Through its regulatory intervention, the CCPA has been steadfast in ensuring that Ola adheres to the legal framework established to secure the rights of consumers,” the regulator stated.

The move comes as the CCPA increases scrutiny of digital platforms to protect consumer interests in the rapidly growing e-commerce and ride-hailing sectors.

New Delhi:

RPG Group Chairman Harsh Goenka on Tuesday took a dig at Ola CEO Bhavish Aggarwal over his recent spat with comedian Kunal Kamra. Taking to his official X account, Mr Goenka said he uses his Ola if he has to travel from one ‘kamra’ (room) to another.

“If I have to travel close distances, I mean from one ‘kamra’ to another, I use my Ola,” he wrote, tagging Mr Aggarwal and a picture of him sitting on an Ola electric vehicle.
  

If I have to travel close distances, I mean from one ‘kamra’ to another, I use my Ola @bhashpic.twitter.com/wujahVCzR1

— Harsh Goenka (@hvgoenka) October 8, 2024

His ‘kamra’ mention was an apparent reference to the surname of the comedian, who last week was engaged in a heated argument with Mr Aggarwal over the situation of Ola service centres.

The argument began when Mr Kamra took to his official X account and posted an image showing a large number of EV scooters being parked at an Ola service centre.

“Do Indian consumers have a voice?  Do they deserve this? Two-wheelers are many daily wage workers’ lifeline… Anyone who has an issue with Ola Electric leave your story below tagging all…,” he wrote.

In another post, he responded to a user who said that Ola has a “pathetic service”.

“Worse is the leader has no reply,” Mr Kamra said.

His post, however, irked Bhavish Aggarwal, who said that it was a “paid tweet” and asked Mr Kamra to “come and help” them out.

“Since you care so much Kunal Kamra, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career. Or else sit quiet and let us focus on fixing the issues for the real customers. We’re expanding the service network fast and backlogs will be cleared soon,” the Ola boss wrote on X.

Since you care so much @kunalkamra88, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career.

Or else sit quiet and let us focus on fixing the issues for the real customers. We’re expanding service network fast and backlogs… https://t.co/ZQ4nmqjx5q

— Bhavish Aggarwal (@bhash) October 6, 2024

Mr Kamra then responded to Mr Aggarwal’s post.

“Paid tweet, failed comedy career, and sit quietly. Indian businessman at their humble best… If you can prove I am paid for the tweet this or anything else I must’ve said against private companies, I’ll delete all social media and sit quietly forever,” he said.

He also tagged a clip of his standup act last year. “On my failed comedy career here’s a clip from last year when I surprised an audience… Anything else you arrogant, substandard, prick.”

On my failed comedy career here’s a clip from last year when I surprised an audience & opened for Grover…
Anything else you arrogant, substandard, prick @bhashpic.twitter.com/e7bQzVcCrT

— Kunal Kamra (@kunalkamra88) October 6, 2024

Responding to his tweet, Mr Aggarwal again asked Mr Kamra to come to an Ola service centre.

“Chot lagi? Dard hua? (Did it hurt) Aaja (come to) service centre. Bahut kaam hai (We have a lot of work). I will pay better than your flop shows pay you. Show your audience how much you truly care and whether you’re only gas,” he said.

Kunal Kamra then asked Mr Aggarwal to instead give a “total refund” to anyone who wants to return their Ola EV and who has purchased it in the last four months.

“I don’t need your money. People not being able to get to their workplace need your accountability. Show your customers that you truly care,” he wrote.

Responding to his post, the Ola CEO said they have “enough programs” for their customers if they face service delays.

We have enough programs for our customers if they face service delays. If you were a genuine one, you would have known.

Again, don’t try and back out of this. Come and do some real work rather than armchair criticism. https://t.co/HFFKgsl7d9

— Bhavish Aggarwal (@bhash) October 6, 2024

“If you were a genuine one, you would have known. Again, don’t try and back out of this. Come and do some real work rather than armchair criticism,” he added.

Ola Electric Gets Show Cause Notice

The Central Consumer Protection Authority has issued a show cause notice to Ola Electric for alleged violation of consumer rights, misleading advertisement and unfair trade practices, according to a regulatory filing by the company. The company received the show cause notice by email on October 7, 2024, it said in the filing.

The show cause notice has been issued by the “Central Consumer Protection Authority (CCPA) for alleged violation of consumer rights, misleading advertisement and unfair trade practices”, it added.

The shares of Ola Electric Mobility on Monday had plunged steeply over 8%, down 43% from its post-listing peak, as complaints about its flagship electric two-wheelers kept flooding social media. It was the third straight session the EV maker declined.

Ola Electric, which made its stock market debut about two months ago, sold 23,965 vehicles in September, recording a month-on-month decline for the second consecutive month.

Its falling month-on-month sales have seen its market share decline for five straight months to 27% in September, from over 50% in April, according to the data.

The drop in sales comes amid scores of Ola Electric’s flagship S1 series EV scooters reportedly facing issues like malfunctioning hardware and glitching software.

Ola electric scooters are seen outside the Ola Electric Service Centre, in Thane on the outskirts of Mumbai. File.
| Photo Credit: Reuters

The Central Consumer Protection Authority has slapped a Show Cause Notice on Ola Electric Mobility Ltd for alleged violation of consumer rights, misleading advertisement and unfair trade practices, Ola Electric Mobility said.

“We wish to inform you that the company has received Show Cause Notice from the Central Consumer Protection Authority,” the company informed the stock exchanges.

Also Read:Ola Electric shares tank 8% after CEO’s spat with comedian over ‘service deficiencies’

“The Central Consumer Protection Authority has provided a timeline of 15 days to the company to respond to the show cause notice. The Company will respond within the given timeframe with the supporting documents,” it added.

The company received the Show Cause Notice vide email on October 7, 2024.

“Currently, the Show Cause Notice has no impact on financial, operational or other activities of the company. Furthermore, the Show Cause Notice which is issued by Central Consumer Protection Authority does not impose any penalties or financial fines,” it informed the exchanges.

At 10.07 a.m. on Tuesday Ola stock was down 0.65% to ₹90.23 on the BSE.

.

New Delhi:

Ola CEO Bhavish Aggarwal and comedian Kunal Kamra were today engaged in a heated spat after the latter flagged the service centre situation of the company’s electric scooters.

The argument began when Mr Kamra took to his official X account and posted an image showing a large number of EV scooters being parked at an Ola service centre.

“Do Indian consumers have a voice?  Do they deserve this? Two-wheelers are many daily wage workers’ lifeline… Anyone who has an issue with Ola Electric leave your story below tagging all…,” he wrote.

In another post, he responded to a user who said that Ola has a “pathetic service”.

“Worse is the leader has no reply,” Mr Kamra said.

His post, however, irked Bhavish Aggarwal, who said that it was a “paid tweet” and asked Mr Kamra to “come and help” them out.

“Since you care so much Kunal Kamra, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career. Or else sit quiet and let us focus on fixing the issues for the real customers. We’re expanding the service network fast and backlogs will be cleared soon,” the Ola boss wrote on X.

Since you care so much @kunalkamra88, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career.

Or else sit quiet and let us focus on fixing the issues for the real customers. We’re expanding service network fast and backlogs… https://t.co/ZQ4nmqjx5q

— Bhavish Aggarwal (@bhash) October 6, 2024

Mr Kamra then responded to Mr Aggarwal’s post.

“Paid tweet, failed comedy career, and sit quietly. Indian businessman at their humble best… If you can prove I am paid for the tweet this or anything else I must’ve said against private companies, I’ll delete all social media and sit quietly forever,” he said.

He also tagged a clip of his standup act last year. “On my failed comedy career here’s a clip from last year when I surprised an audience… Anything else you arrogant, substandard, prick.”

On my failed comedy career here’s a clip from last year when I surprised an audience & opened for Grover…
Anything else you arrogant, substandard, prick @bhashpic.twitter.com/e7bQzVcCrT

— Kunal Kamra (@kunalkamra88) October 6, 2024

Responding to his tweet, Mr Aggarwal again asked Mr Kamra to come to an Ola service centre.

“Chot lagi? Dard hua? (Did it hurt) Aaja (come to) service centre. Bahut kaam hai (We have a lot of work). I will pay better than your flop shows pay you. Show your audience how much you truly care and whether you’re only gas,” he said.

Kunal Kamra then asked Mr Aggarwal to instead give a “total refund” to anyone who wants to return their Old EV and who has purchased it in the last four months.

“I don’t need your money. People not being able to get to their workplace need your accountability. Show your customers that you truly care,” he wrote.

Responding to his post, the Old CEO said they have “enough programs” for their customers if they face service delays.

We have enough programs for our customers if they face service delays. If you were a genuine one, you would have known.

Again, don’t try and back out of this. Come and do some real work rather than armchair criticism. https://t.co/HFFKgsl7d9

— Bhavish Aggarwal (@bhash) October 6, 2024

“If you were a genuine one, you would have known. Again, don’t try and back out of this. Come and do some real work rather than armchair criticism,” he added.

Ola Electric’s Dominance Fading?

Ola Electric logged its lowest monthly sales this year in September, government data showed, as it saw its dominance fading due to servicing network challenges.

Ola Electric, which made its stock market debut about two months ago, sold 23,965 vehicles in September, recording a month-on-month decline for the second consecutive month.

Its falling month-on-month sales have seen its market share decline for five straight months to 27% in September, from over 50% in April, according to the data.

The drop in sales comes amid scores of Ola Electric’s flagship S1 series EV scooters reportedly facing issues like malfunctioning hardware and glitching software.