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Ola Electric boosts service capacity by 30%; adds over 50 centers, and 500 technicians to clear complaint backlog

Oct 31, 2024, 17:52 IST
Business Insider India
On NSE, Ola Electric shares dipped below its IPO issue price of Rs 76 on Tuesday, hitting its 52-week low of Rs 74.84. ANI
India's biggest e-scooter maker, Ola Electric, has ramped up capacity at its service centres across the country by over 30% to transform its service and elevate the after-sales experience of customers, sources said.
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The Softbank Group-backed firm, which commands nearly a third of the market share in India's e-scooter market, has added more than 50 service centers and has hired over 500 service technicians across new and existing service centres to streamline operations and clear all backlogs.

Recently, the company announced that it has managed to clear about 99% of its complaint logjam, even as public backlash on the company's e-scooters continues to emerge almost every day. Reportedly, CCPA is set to probe this claim, with the company also onboarding Ernst & Young for service transformation, strategy, and optimization of overall service processes.

"The company has already cleared around two-thirds of the service backlog and should be able to clear the remaining in the next couple of weeks," said a senior official within the organization, requesting anonymity, to ANI.

Ola was in the spotlight earlier this month following a public spat between its founder Bhavish Aggarwal and standup comedian Kunal Kamra over the quality of service.

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Last week, HSBC Global Research maintained a 'buy' rating for Ola Electric shares with a target price of Rs 110 apiece, slashing it down from its earlier recommendation of Rs 140. The global research firm revisited Ola Electric's service centers a month after an earlier inspection in September and noted the need for substantial improvements in service centers.

On NSE, Ola Electric shares dipped below its IPO issue price of Rs 76 on Tuesday, hitting its 52-week low of Rs 74.84. Today, it closed the day at Rs 80.90, up by 1.34%. At present, the company has a total market cap of Rs 35,683.61 crore. The stock closed at Rs 80.88, up by 1.28% today on the BSE.

In September, founder and CMD Bhavish Aggarwal announced the #HyperService campaign to offer technology-led, best-in-class after-sales experience. As part of the announcement, Ola Electric plans to double the company-owned service network to 1,000 centers by December 2024.

According to the government portal Vahan, Ola Electric has reinforced its leadership position in the category with an increased market share of over 30% in October 2024 so far, up from 27% in September 2024.
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