Ola Electric wrongly claims to solve service issues, CCPA initiates probe

The National Consumer Helpline has reportedly received over 10,000 complaints against Ole Electric regarding product quality and after-sales service in the past year

The Central Consumer Protection Authority (CCPA), a regulatory body to protect consumer rights, ordered a detailed investigation into Ola Electric following concerns about the company’s consumer complaint resolution practices, reported Business Today.  

As per the news report, the Consumer Affairs Ministry has instructed the Director General (DG) Investigation, an investigative arm of CCPA, to initiate this probe last week. 

 

Ola Electric’s customer satisfaction claims debunked 

After receiving a show-cause notice from the CCPA, Ola Electric claimed to have resolved 99.1 per cent of its customer issues. However, this claim was proven incorrect following a cross-verification by the CCPA. 

“Out of the 287 consumers contacted by NCH call agents, 130 were reached. Of those, 103 (or 79.2 per cent) expressed dissatisfaction with the company’s response,” an official on the condition of anonymity told Mint. “This was merely a sample test to verify Ola’s claims. If they’re asserting 99 per cent customer satisfaction, that should have been evident in the cross-verification process as well,” the official said. 

 

In light of these instances, CCPA initiated a detailed investigation into the matter. The Director General of BIS, who also serves as the ex-officio Director General of Investigation, has been directed to submit a report within 15 days, following the formal initiation of the inquiry on November 6.     

History of Ola Electric’s service issues 

The National Consumer Helpline (NCH) has received more than 10,000 complaints about Ole Electric related to quality and after sale service in the past one year alone. For that, the electric two wheeler manufacturer got a show cause notice from CCPA pushing to resolve all the complaints received.  

According to the source, key categories of consumer complaints include charges incurred during free service periods or warranties, delayed and unsatisfactory service, refusal or delays in honouring warranty claims, inadequate services, recurring defects despite repairs, and performance inconsistencies with advertised claims.  

Furthermore, specifically regarding its scooters, additional concerns raised by consumers include overcharging, inaccurate invoices, failure to issue refunds or provide necessary documentation, unprofessional conduct, and improper closure of complaints. Several consumers also reported ongoing issues with batteries and vehicle components. 

According to the CCPA, the reasons for issuing a show cause notice were alleged violations of consumer rights, service deficiencies, misleading claims, and unfair trade practices.

 

Exchange between Ola CEO and comedian Kunal Kamra 

Ola Electric founder and CEO Bhavish Aggarwal recently engaged in a heated debate with comedian Kunal Kamra on social media platform X, addressing concerns about the service issues with the company’s S1 series scooters. The dispute was triggered after Kamra shared a post featuring a photo of an Ola dealership, with several scooters seemingly left outside, gathering dust. 

Kamra’s caption read, “Do Indian consumers have a voice? Do they deserve this?” He went on to emphasise that two-wheelers are essential for many daily wage workers, noting the heavy reliance of gig economy workers on scooters for their livelihoods.

Aggarwal responded to Kamra, accusing him of posting ‘paid tweet’ and challenged him to solve the problem: “Since you care so much, @kunalkamra88, come help us out! I’ll even pay you more than what you earned for this paid tweet or from your failed comedy career.” He further said, “Otherwise, sit quiet and let us focus on fixing the issues for our actual customers.” Aggarwal defended his company asserting, “We’re rapidly expanding our service network, and backlogs will be cleared soon.”