Kunal Kamra and Bhavish Aggarwal’s spat over Ola Electric’s after-sales service has escalated, drawing significant attention from customers and the media alike. On October 22, 2024, Ola Electric announced that it had resolved 99.1% of the complaints received from the Central Consumer Protection Authority (CCPA), amidst a backdrop of over 10,000 grievances lodged against the company over the past year. This situation has not only highlighted the challenges faced by Ola Electric but has also sparked a public feud between Kamra, a well-known comedian, and Aggarwal, the founder of Ola Electric.
Main Points
The Background of Complaints
Ola Electric, which has rapidly become a leader in India’s electric vehicle market, is now grappling with a severe backlash regarding its after-sales service. Customers have reported issues ranging from delayed repairs to inadequate service at their centers. Many customers have expressed frustration, claiming that they feel misled by the company’s promises. Reports indicate that Ola Electric’s service centers are overwhelmed, with some locations reportedly having hundreds of scooters waiting for repairs.
The CCPA intervened after receiving an alarming number of complaints. In response to this situation, they issued a show-cause notice to Ola Electric on October 7, citing violations of consumer rights and unfair trade practices. This notice prompted further scrutiny from the Ministry of Heavy Industries, which requested an audit of Ola’s service operations.
Please can a journalist fact check this.
If true this is truly unique –
Sales team for sales & Bouncers for after sales 😂😂😂 https://t.co/AGz6oKiKxP— Kunal Kamra (@kunalkamra88) October 20, 2024
Kunal Kamra’s Role
Kunal Kamra has been vocal about his dissatisfaction with Ola Electric’s services. He publicly criticized Aggarwal on social media, questioning the company’s lack of a clear plan to address ongoing customer complaints. In a pointed post on X (formerly Twitter), Kamra shared images of numerous scooters parked at a service center waiting for repairs. He challenged Aggarwal to announce a public plan for resolving these issues rather than simply expanding their service network.
The exchange between Kamra and Aggarwal intensified when Aggarwal dismissed Kamra as a “failed stand-up comic,” accusing him of being part of a paid campaign against the company. This back-and-forth has not only fueled public interest but also contributed to negative sentiment surrounding Ola Electric’s stock performance.
Response from Ola Electric
In light of the escalating complaints and public criticism, Ola Electric has taken steps to improve its after-sales service. The company has engaged Ernst & Young (EY) to help revamp its service processes and manage spare parts inventory more effectively. Additionally, Ola plans to expand its service network from 400 to 1,000 centers by December 2024 and train over 100,000 third-party mechanics to enhance customer support.
Despite these efforts, many customers remain skeptical about whether these changes will lead to tangible improvements in service quality. A significant portion of complaints has centered around slow repair times and unavailability of spare parts. Some customers have even resorted to drastic measures like burning their scooters in protest.
The Impact on Business
The fallout from this controversy is evident in Ola Electric’s market performance. The company experienced its lowest monthly sales in September 2024, with its market share dropping from 47% to 27%. Analysts have noted that this decline coincides with rising customer dissatisfaction and increased competition from established players in the electric vehicle market.
Ola’s stock price has also taken a hit following the CCPA notice and subsequent media coverage highlighting customer grievances. The shares fell significantly in early October after Kamra’s comments went viral and further scrutiny was placed on the company’s operations.
