Ola Electric given notice on customer service after 10,000 complaints

India’s consumer rights agency has reported a staggering 10,000 complaints against Ola Electric over the past year and has issued a notice demanding an explanation from the SoftBank-backed e-scooter manufacturer, according to a senior official at the watchdog.

Following a strong market debut in August, shares of India’s largest e-scooter maker have plummeted by around 40% in recent weeks, driven by a drop in sales and a surge of disgruntled customers voicing their frustrations about the company’s after-sales service on social media.

The spotlight has intensified on Ola this week after a public altercation between its founder and a comedian reignited concerns regarding its customer service, leading to an influx of complaints online.

India’s Central Consumer Protection Authority has sent a “show cause” notice to Ola after receiving over 10,000 complaints from September 2023 to August 2024. Issues cited include delayed and inadequate services as well as incorrect invoices, as reported by Nidhi Khare, the consumer affairs secretary.

Khare expressed concern over the unusually high number of complaints, stating, “You cannot leave it to individual consumers to fight their way out.” She noted that similar complaints have emerged repeatedly, impacting a significant number of consumers, some of which allege “unprofessional conduct” by the company.

Ola, which holds a 27% share of India’s e-scooter market, has not yet responded to requests for comment.

In a September report, HSBC analysts indicated that their visits to various Ola service hubs revealed many were overwhelmed by service requests. A previous investigation by Reuters last year found that many of the 35 Ola centers surveyed across 10 Indian states were facing significant backlogs, with demand far exceeding available workforce. At one center, over 100 scooters were left parked, many of them covered in bird droppings.