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Ola Electric is cutting 500 jobs across verticals and levels as part of a restructuring exercise, according to people aware of the development.  The company, which has come under the scanner for its poor aftersales service recently, had started the job cut in the September quarter. <br /><br /> "It has been going on for some time now, starting around July. It has been a gradual process of removing redundant roles across verticals and levels," said a source. <br /><br /> The exercise is expected to be completed by the end of this month. <br /><br /> Ola Electric is looking to optimise workforce with an aim to improving margins and enhance profitability, the person added. <br /><br /> Earlier this month, Central Consumer Protection Authority (CCPA) had ordered a detailed probe into complaints related to alleged "deficiencies" in services and electric two-wheelers manufactured by Ola Electric. <br /><br /> Last month, the company had said that out of 10,644 complaints received from CCPA, it has resolved 99.1 per cent of the complaints.

Ola Electric cuts 500 jobs across verticals

<ul><li><keyword id="19897349" type="General" weightage="20" keywordseo="ola-electric" source="keywords">Ola Electric</keyword> has come under the scanner after a surge in customer complaints.</li><li>The company’s sales and market share have also been declining.</li><li>The government has reportedly issued a show cause notice to <keyword id="19945904" type="General" weightage="20" keywordseo="ola" source="keywords">Ola</keyword> Electric.</li></ul>Ola Electric was once considered the most promising electric automaker in the country, from dominating the electric two-wheeler with its electric scooters to introducing multiple electric bikes simultaneously. The company had many things going for it, hosting a vast distribution network via its cab-hailing platform and a conducive policy environment that incentivised the growth of EVs.<br /><br />But within a few years of its launch, somewhere something seems to have gone awfully wrong!<br /><br />The Bhavish Aggarwal-led company has recently been in the news for all the wrong reasons, from the company’s founder engaging in an online spat with comedian Kunal Kamra to customers taking to social media to complain about their scooters.<br /><br />But that’s not where the company’s problems end. One of the seemingly direct effects of the rise in customer complaints has been subdued sales in recent months. Besides this, the company has also come under the government’s scanner.<br /><br /><h2>Surge in complaints</h2>According to a recent report, Ola Electric recently formed a new service team to deal with the surge in customer complaints. As per the report, the electric two-wheeler maker is receiving as many as 80,000 customer complaints per month, overwhelming its service infrastructure.<br /><br /><div type="Article" hostid="261" msid="113699039" title="Ola Electric plans to expand sales and service infra to 10,000 outlets by 2025-end" mstype="2" mssubtype="0"></div><br />The high number of complaints reportedly resulted in high wait times for customers, resulting in growing customer dissatisfaction, which is regularly played out on social media.<br /><br /><h2>Declining market share</h2>It’s not just social media, the company’s market share has also been on the decline along with its sales. From nearly a 50% market share in April 2024, the company’s market share declined to 27% in September 2024.<br /><br />While the company still leads the Indian electric two-wheeler market, legacy automakers like Bajaj Auto and TVS Motor are closing in. While Bajaj Auto reported a 21.5% market share in September 2024, TVS Motor reported a 20.3% market share.<br /><br />From occupying nearly half of the market, Ola Electric has now been restricted to a quarter and by the looks of it, the company may not even be able to hold the top position by the end of the year if the current trend continues.<br /><br /><h2>Ola Electric comes under the government’s scrutiny</h2>Amid rising complaints, Ola Electric has also come under the government’s scanner. The Central Consumer Protection Authority (CCPA), India’s consumer watchdog issues a show-cause notice to Ola Electric over potential violations of the Consumer Protection Act (2019).<br /><br />According to a report, The National Consumer Helpline (NCH) run by the Department of Consumer Affairs has received 10,644 complaints against Ola Electric since September 2023. When the NCH approached Ola Electric, the body was reportedly met with apathy by the company.<br /><br />Out of the 10,644 complaints, 3,389 relate to delays in providing service to the vehicles, 1,899 are around delivery delays for new vehicles and 1,459 customers have complained about services that were promised but not provided.<br /><br />According to a report by CNBCTV-18, CCPA chairman Nidhi Khare has said the complaints against Ola Electric have been classified in 10 categories, including “delayed and unsatisfactory service”, “refusal or delay in warranty services”, “recurrent defects despite services”, “unprofessional conduct and complaint closure” and more.<br /><br /><h2>A customer’s harrowing experience</h2>Business Insider India spoke to Mr Rakesh (name changed), an Ola Electric customer who has been facing issues with his Ola S1 Pro.<br /><br />The customer paid for the vehicle in August 2023 and the scooter was delivered in January 2024, after a five-month wait.<br /><br />The first issue that the customer faced was that despite the scooter only being delivered in January 2024, the scooter’s warranty began in August 2023, depriving the customer of five months of warranty.<br /><br />Not just this, the vehicle’s insurance began in November 2023, two months prior to the delivery. While this is a concerning issue, this was the least of the customer’s problems.<br /><br /><div type="image" title="1" msid="114120836" hostid="261" sizebytes="68242" caption="&amp;lt;p&amp;gt;The Ola S1 Pro being towed&amp;lt;/p&amp;gt;"></div><br />As per the customer, his scooter repeatedly faced issues, not even turning on at times. Rakesh said that he was forced to restart his vehicle four to five times a day just to be able to use it and if this didn’t work, he was forced to remove and re-insert a plug placed under the seat.<br /><br />However, even this failed several times and in less than eight months of usage, Rakesh was forced to get his vehicle towed to the service centre multiple times with the help of roadside assistance (RSA). He claimed that he faced the issue nearly 30 times so far. He further said that the scooter has spent the majority of its time at the service centre, which is extremely disappointing after spending over ₹1.6 lakh on a vehicle.<br /><br /><div type="image" title="2" msid="114120876" hostid="261" sizebytes="65944" caption="&amp;lt;p&amp;gt;The Ola S1 Pro being towed again&amp;lt;/p&amp;gt;"></div><br />At the service centre, the service executives were unable to find the exact cause of the issue. To try and solve the issue, the scooter’s control unit was reportedly changed twice and there were multiple software updates.<br /><br />Rakesh has had a disappointing experience so far, especially with the service executives being unable to diagnose the issue and him having to repeatedly visit the service centre.<br /><br /><h2>A wake-up call?</h2>Many users on the internet have labelled Ola vehicles as subpar and not fit for this competitive market that’s growing rapidly. The initial marketing was good, helping the company conquer almost half of the market share. But a bad quality product can dent the reputation of a company severely in the long run.<br /><br />This must serve as a wake-up call for <keyword id="1543567" type="General" weightage="20" keywordseo="Bhavish-Aggarwal" source="Orion">Bhavish Aggarwal</keyword> and everyone at Ola Electric and the consumers hope that the company not only works on improving its quality control but also overhauls its service infrastructure to more efficiently diagnose and solve issues with their vehicles.<br /><br />During an interaction early in the company’s journey, Aggarwal once said that he hopes to sell around 1.5 lakh to 2 lakh scooters a month, which is close to what one of the popular petrol scooters manages to do each month.<br /><br />While this dream looked achievable at one time, the journey now seems quite tedious.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/business/auto/news/september-auto-sales-automakers-report-a-decline-mahindra-and-mahindra-overtakes-tata-motors/articleshow/113925972.cms">September Auto sales – Automakers report a decline, Mahindra and Mahindra overtakes Tata Motors</a><br /><br /><a href="https://www.businessinsider.in/business/auto/news/ola-electric-continues-to-lose-market-share-as-bajaj-auto-and-tvs-motor-gain/articleshow/113900252.cms">Ola Electric continues to lose market share as Bajaj Auto and TVS Motor gain</a><br /><br /></strong><a href="https://www.businessinsider.in/business/auto/news/pm-e-drive-scheme-with-10900-crore-outlay-announced-for-electric-vehicles/articleshow/113816837.cms"><strong>PM E-DRIVE scheme with ₹10,900 crore outlay announced for electric vehicles</strong></a><br />

The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?

<ul><li><keyword id="19897349" type="General" weightage="100" keywordseo="Ola-Electric" source="keywords">Ola Electric</keyword> says it has resolved over 99% complaints</li><li>The company's stock price also surged</li><li><keyword id="19945904" type="General" weightage="20" keywordseo="ola" source="keywords">Ola</keyword> had received a show cause notice from <keyword id="20127554" type="General" weightage="20" keywordseo="CCPA" source="keywords">CCPA</keyword></li></ul><br />Two-wheeler manufacturer Ola Electric has announced that it has successfully addressed 99.1% of the 10,644 complaints raised by the Central Consumer Protection Authority (CCPA). This update comes on the heels of a recent notice from the CCPA, which had accused the company of misleading advertisements, unfair trade practices, and potential consumer rights violations.<br /><br /><h2>Ola Electric claims to solve 99.1 percent complaints<br /></h2><br />The company, which received the notice on October 7, was given a 15-day window to respond to the allegations. In a regulatory filing dated October 21, Ola Electric revealed that it had provided the necessary clarifications and information to the CCPA, reinforcing its commitment to customer satisfaction.<br /><br />"We wish to emphasise that out of 10,644 complaints that we received from the CCPA, 99.1 per cent of the complaints were resolved to the complete satisfaction of the customer as per Ola Electric's robust redressal mechanism," the company said as per a PTI report.<br /><br /><div type="Article" hostid="261" msid="113984574" title="‘Comedian ban na sake, Chaudhary banne chale’: Ola CEO Bhavish Aggarwal after Kunal Kamra criticises Ola EV service" mstype="2" mssubtype="0"></div><br />Additionally, as per a News18 report, 3,364 complaints were linked to slow service and repair issues, while 1,899 centred around delayed deliveries of Ola’s electric scooters. Another 1,459 complaints focused on unmet service commitments, contributing to widespread frustration among customers. Other grievances included claims of misleading advertisements, which overstated the scooters’ performance, features, and availability.<br /><br />To improve its after-sales service, Ola also reportedly partnered with consultancy firm EY, focusing on streamlining spare parts management and enhancing customer support. <br /><br /><h2>Stocks see a rise</h2>After the announcement, Ola Electric Mobility’s stock saw a sharp rise of over 4% in early trading on Tuesday. The company’s shares surged by 4.45%, hitting a peak of Rs 85.30 on the BSE after it reported resolving approximately 99.1% of the 10,644 complaints lodged with the CCPA. This positive development comes as Ola Electric works to strengthen its customer service and address regulatory concerns.<br /><br /><h2><keyword id="19914967" type="General" weightage="20" keywordseo="Bhavish-Aggarwal" source="keywords">Bhavish Aggarwal</keyword> vs <keyword id="2682024" type="General" weightage="20" keywordseo="kunal-kamra" source="Orion">Kunal Kamra</keyword><br /></h2><br />However, Ola Electric’s journey hasn’t been entirely smooth, especially for its CEO, Bhavish Aggarwal, who recently found himself in a public spat on X with comedian Kunal Kamra.<br /><br /><div type="Article" hostid="261" msid="114004646" title="'Pay your staff properly, solve the 80,000 complaints first': Internet reacts on Ola CEO Bhavish Aggarwal and Kunal Kamra feud" mstype="2" mssubtype="0"></div><br />What started as a Sunday afternoon tweet by Kamra criticising Ola Electric’s S1 series scooters quickly escalated into a fiery exchange with the Ola Electric boss. It all began when Kamra had posted a picture showing several Ola scooters gathering dust at a dealership, highlighting concerns over poor service. However, the situation intensified when Aggarwal responded, accusing Kamra of posting a “paid tweet” and launching personal digs at the comedian’s career.<br />

Bhavish Aggarwal's OLA Electric says it has resolved 99% customer complaints after receiving CCPA show cause notice

What started as a Sunday afternoon tweet by comedian <keyword id="20947562" type="General" weightage="20" keywordseo="Kunal-Kamra" source="keywords">Kunal Kamra</keyword> criticising <keyword id="19897349" type="General" weightage="20" keywordseo="Ola-Electric" source="keywords" meta.keywordsubtype="org" meta.entityname="Ola Electric" meta.hostid="261" meta.entityid="Ola Electric">Ola Electric</keyword>’s S1 series scooters quickly escalated into a fiery exchange with <keyword id="19914967" type="General" weightage="20" keywordseo="Bhavish-Aggarwal" source="keywords">Bhavish Aggarwal</keyword>, CEO of <keyword id="19945904" type="General" weightage="100" keywordseo="Ola" source="keywords" meta.keywordsubtype="org" meta.entityname="Ola" meta.hostid="261" meta.entityid="Ola">Ola</keyword>. It all began when <keyword id="23458070" type="General" weightage="20" keywordseo="kamra" source="keywords">Kamra</keyword> had posted a picture showing several Ola scooters gathering dust at a dealership, highlighting concerns over poor service. However, the situation intensified when Aggarwal responded, accusing Kamra of posting a “paid tweet” and launching personal digs at the comedian’s career.<br /><br />The feud between the two public figures has sparked a wave of reactions on social media, dividing Twitter users. While some users echoed Kamra’s frustrations about Ola’s <keyword id="21440362" type="General" weightage="20" keywordseo="service-quality" source="keywords">service quality</keyword>, others defended Aggarwal’s sharp retorts. The argument has moved beyond the two individuals, turning into a broader debate about the state of customer service in India’s <keyword id="19906970" type="General" weightage="20" keywordseo="electric-vehicle" source="keywords">electric vehicle</keyword> sector.<br /><br /><h2>Internet complains about Ola’s Service Quality<br /></h2><br />Several users shared their experiences with Ola’s service issues, siding with Kamra’s criticisms. One Twitter user wrote, “It’s all fun and all, Bhavish sir, but with all the complaints, the ‘Bhavishya’ of OLA Scooters is not looking good. Rather than hitting out at Kunal, tell people the plan to solve the 80k and growing complaints.” Many shared similar sentiments, recounting personal stories of service delays and unresolved issues.<br /><br />For instance, one customer revealed, “It’s been only 4 months since my brother bought the Ola S1 Pro, and he’s gone to the service centre at least 6-7 times, sometimes due to software issues, sometimes due to quality issues. Every day, a new problem arises.”<br /><br />Another wrote, “A friend of mine bought an ola scooter, after eight months it started giving trouble, he followed up to the service centre for 6 months but they didn't resolve his issue, In the end he paid 24000/- to get the issue resolved.”<br /><br />Yet another user expressed their dissatisfaction bluntly, saying, “Pay your staff properly first! Instead of calling out Kamra, put that money to better use—expand your service infrastructure, fix quality checks, then show off your wealth on social media!”<br /><br />Meanwhile, another X user said that they can only imagine “how badly customer service behaves with individuals, if this is how top management reacts to criticism.”<br /><br /><h2>Support for OLA CEO<br /></h2><br />On the other hand, some users supported Aggarwal, praising his leadership and dismissing Kamra’s criticisms as an attempt to stay relevant.<br /><br />“Kunal, you missed the comedy gig and now think you're leading the charge? What bhavish and ola are doing is clearly out of your sight, that is solving "real problems". Feel free to visit one—maybe learn some skills beyond just creating nuisance,” a user wrote. <br /><br />Another user commented, “Kunal Kamra has a rare disease of poking everywhere to revive his sinking career! Ignore these stunts, Bhavish, you’ve built an amazing company.” Another echoed this sentiment, adding, “Founder mode on.”<br /><br />Some, on the other hand, took a more balanced stance. A user wrote, “Reply might sound arrogant here, but sometimes you have to show people their place. Bhavish did the right thing,” one person tweeted.<br /><br />However, he also acknowledged there are real issues with Ola’s service. “Let’s agree there’s an issue with service,” he added.<br /><br />Here are some reactions:<br /><br /><div type="image" title="google (5)" msid="114007569" hostid="261" sizebytes="643332"></div> <br /><br />As the feud unfolds, it has highlighted deeper concerns around accountability in the electric vehicle market. The war of words may have begun with Kamra’s tweet, but the chorus of complaints from Ola customers underscores the broader dissatisfaction with after-sales service. This exchange, while entertaining for many, has become a focal point for customers demanding better support from companies as India pushes towards a greener transportation future.<br />

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Ola Electric cuts 500 jobs across verticals

PTI

The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?

Sourabh Jain

Bhavish Aggarwal's OLA Electric says it has resolved 99% customer complaints after receiving CCPA show cause notice

Divyanshi Sharma

'Pay your staff properly, solve the 80,000 complaints first': Internet reacts on Ola CEO Bhavish Aggarwal and Kunal Kamra feud

Divyanshi Sharma

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