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Tag: Ola Electric Consumer Complaints

  • Ola Electric is ordered by the Consumer Commission to Reimburse a Client INR 1,63,986

    After a customer’s e-scooter was discovered to be defective, the District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, ordered Ola Electric to reimburse INR 1,63,986 with interest and provide INR 10,000 in compensation. Following persistent issues with his Ola S1 Pro since its delivery in June 2022, Hyderabad counsel K Sunil Chowdary lodged a complaint.

    The scooter’s charger was defective from the beginning, and unsolved battery problems have made it inoperable since August 2023, even with an extended warranty and Ola Care Plan. Despite raising these issues several times with the company, Ola Electric was unable to provide a satisfactory result to the customer.

    Ola Electric did not show up for or reply to hearings in response to Chowdary’s legal notification from October 2023. Ola’s failure to fix the scooter was determined by the commission to be a service deficiency. Within 45 days, the refund and the 9% interest that has accumulated since August 2023 must be paid; otherwise, the interest rate would rise to 12% annually.

    When Ola Electric Mobility’s three-month lock-in period ended earlier in the day on November 5, the company’s shares were down more than 7%.

    Ola Claims that 99% of Customer Complaints are Resolved

    On the other hand, contradicting from aforementioned development, Ola Electric last month made a statement mentioning that out of the 10,644 customer complaints it has received thus far, 99.91% have been handled and resolved successfully. In a regulatory filing on September 21, 2024, the manufacturer of electric two-wheelers notified the Central Consumer Protection Authority (CCPA) of the latest developments on long-pending customers’ issues. The CCPA issued a show-cause notice to the Bengaluru-based company earlier this month in response to subpar conditions at its service centres throughout the nation.

    The Department of Consumer Affairs’ National Consumer Helpline reports that between September 1, 2023, and August 30, 2024, 10,644 complaints were filed against Ola e-scooters. Of these, 1,899 deal with new vehicle delivery delays, 3,389 with servicing delays, and 1,459 with unmet promises of services.

    In a regulatory filing, Ola Electric stated that it wants to be clear that it has a robust framework in place to address any complaints regarding its electric two-wheeler. The company would like to emphasise that, in fact, 99.1% of the 10,644 complaints it received from the CCPA were resolved to the complete satisfaction of the customer because of Ola Electric’s robust redressal mechanism.

    This calculating approach was a response to growing customer dissatisfaction, as seen by the 80,000 customer complaints that went viral on social media each month, along with the stories and pictures of Ola Electric vehicles soaking dust at repair facilities. The outcry attracted the attention of both lawmakers and consumer watchdogs.

    The Central Consumer Protection Authority (CCPA) had sent Ola Electric a show-cause notice, citing potential violations of consumer rights, misleading advertising, and unfair business practices. The notification identified over 10,000 unresolved after-sales support issues. 

    Electric 2W Sales Surge 85% in October: TVS Overtakes Bajaj
    Electric two-wheeler sales surged 85% to 139,000 units in October. TVS overtook Bajaj, while Ola regained its position in the competitive market.
    StartupTalkyNitin Konde

  • Ola Electric Asserts that 99% of Consumer Complaints are Resolved

    According to Ola Electric, out of the 10,644 customer complaints it has received thus far, 99.91% have been handled and resolved successfully. In a regulatory filing on September 21, 2024, the manufacturer of electric two-wheelers notified the Central Consumer Protection Authority (CCPA) of the latest developments on long-pending customers’ issues. The CCPA issued a show-cause notice to the Bengaluru-based company earlier this month in response to subpar conditions at its service centres throughout the nation.

    The Department of Consumer Affairs’ National Consumer Helpline reports that between September 1, 2023, and August 30, 2024, 10,644 complaints were filed against Ola e-scooters. Of these, 1,899 deal with new vehicle delivery delays, 3,389 with servicing delays, and 1,459 with unmet promises of services.

    The Claims Made by Ola in its Filing

    Ola Electric said in a regulatory filing that it would like to make it clear that it has a strong system in place to handle concerns about its electric two-wheeler. In reality, the company would like to highlight that, thanks to Ola Electric’s strong redressal system, 99.1% of the 10,644 complaints it received from the CCPA were resolved to the full satisfaction of the consumer.

    A notice from the Automotive Research Association of India (ARAI) was also addressed by the company, which is run by Bhavish Aggarwal. Prior to the company’s BOSS sale, the notification raised concerns about the price plan of its S1 X 2 kWh scooters. Ola Electric gave clients an invoice dated October 6 that showed a INR 5,000 discount and stated that it had not changed the prices during the sale. Additionally, it provided a screenshot taken from its app, verifying that the scooter’s cost had not altered.

    What Exactly Happened Earlier?

    With as many as 80,000 customer complaints each month going viral on social media and stories of Ola Electric vehicles collecting dust at repair locations, this calculated approach is a response to growing customer unhappiness. Both lawmakers and consumer watchdogs were drawn to the outcry.

    Ola Electric was recently served with a show-cause notice by the Central Consumer Protection Authority (CCPA), which included possible abuses of consumer rights, deceptive advertising, and unfair business practices. More than 10,000 outstanding after-sales service concerns were highlighted in the notification.

    Ola Electric has made plans to grow its network of service centres in response to these problems, with the goal of increasing the number from 400 to 1,000 by the end of the year. Industry experts caution that expanding the number of centres alone might not address the main problem. An analyst said, “Instead of growing, the company should concentrate on enhancing the quality of current service stations.”

    The CCPA Has Issued a Show Cause Notice to Ola Electric Due to Deceptive Advertising
    Following the Central Consumer Protection Authority’s (CCPA) show-cause notice to the business on 7 September 2024, shares of newly listed Ola Electric Mobility dropped 6.17 percent in intraday trading to INR 85.21 on 8 September 2024.
    StartupTalkyNitin Konde