In recent months, Ola Electric, founded in 2017 as a subsidiary of ANI Technologies, has faced a major public relations crisis due to an increase in consumer complaints about its after-sales service for electric scooters. This issue intensified into a notable exchange between founder Bhavish Agarwal and comedian Kunal Kamra, capturing significant attention on social media.
The conflict began when Kamra responded to a post by Agarwal showcasing Ola's gigafactory. He shared an image of scooters awaiting services, asking, "Do Indian consumers have a voice? Do they deserve this? For many daily wage workers, two-wheelers are a lifeline."
Agarwal dismissed Kamra's tweet as a "paid tweet," which triggered a public backlash and further criticism of Ola's service quality.
In this article, BW Businessworld highlights a series of events that unfolded over the last few days amid rising consumer complaints, public outcry and government scrutiny.
Consumer Complaints Surge (September 2023 To August 2024)
The National Consumer Helpline reported 10,644 complaints related to Ola Electric e-scooters, as per media reports. A substantial portion of these complaints—3,389—highlighted delays in servicing, while 1,899 involved delays in the delivery of new vehicles. Additional complaints cited unfulfilled service promises, indicating widespread dissatisfaction among consumers.
Ola Electric IPO Listing (9 August)
Ola Electric made headlines as the first electric vehicle (EV) startup to complete a major initial public offering (IPO) valued at Rs 6,146 crore, despite facing numerous consumer complaints. The IPO was subscribed 4.27 times.
Public Outcry (11 September, 2024)
The IPO laughter does not last longer for Ola Electric as frustration among customers reached a boiling point when a man in Karnataka reportedly set fire to several Ola e-scooters at a showroom, claiming his complaints had been ignored. This incident symbolised the growing anger over the perceived inadequacy of Ola's customer service.
Social Media Spat (6 October 2024)
The crisis took a dramatic turn when Kunal Kamra responded to a post by Agarwal. Kamra shared an image of idle scooters awaiting service, questioning the company's commitment to Indian consumers. He tagged government officials, calling for accountability.
In a combative response, Agarwal invited Kamra to help resolve the issues, dismissing the comedian's critiques as uninformed. This exchange escalated as Kamra challenged Agarwal to refund customers dissatisfied with their purchases.
Market Response
Such was the impact of this debate that Ola Electric’s share price dropped 8.31 per cent to close at RS 90.82 on the BSE on Monday (7 October), the day after the public outburst. Netizens criticised Agarwal for his "rude, arrogant, and ignorant" comments. However, Ola Electric's shares picked up momentum and ended 5 per cent higher on Tuesday.
Central Government Involvement (7 October 2024)
Ola Electric told NSE that the Central Consumer Protection Authority (CCPA) issued it a show-cause notice for alleged violations of the Consumer Protection Act, 2019. The notice pointed out deficiencies in service, misleading advertisements, and unfair trade practices. Ola Electric was given 15 days to respond, intensifying scrutiny of its operational practices.
Ola Electric vs MapmyIndia
Notably on 23 July 2024 digital navigation firm CE Info Systems, which owns the MaymyIndia brand, sent a legal notice to Ola Electric alleging that the IPO-bound firm has copied its data and reverse-engineered its app to make Ola Maps. The allegation came after Ola Founder Bhavish Aggarwal on social media platform X claimed that the company had exited Google Maps which used to cost the company Rs 100 crore a year and moved to in-house developed Ola Maps. Ola Electric has denied the allegation saying it is misleading. However, MaymyIndia has filed a lawsuit against Ola Electric.
The Broader Implications
The public confrontation between Agarwal and Kamra, alongside the government’s intervention, underscores the severity of the situation for Ola Electric. The company’s stock plummeted by over 9 per cent amid this escalating crisis, reflecting investor concerns over its reputation and operational effectiveness.
The backlash against Agarwal's remarks, particularly those aimed at Kamra's comedy career, has fueled discussions about corporate accountability and the treatment of consumer feedback. The public nature of the spat has raised questions about Ola Electric's management approach and its commitment to addressing legitimate customer grievances.
