Ola Electrical was served a show-cause discover by the Central Shopper Safety Authority on Monday, October 7, for alleged violation of client rights, deceptive commercials, and unfair commerce practices.
The discover to the electrical car (EV) producer comes amid mounting buyer complaints in regards to the functioning and repair high quality of Ola Electrical scooters.
“The Central Shopper Safety Authority has offered a timeline of 15 days to the Firm to answer the present trigger discover. The Firm will reply to the Central Shopper Safety Authority inside the given timeframe with the supporting paperwork,” learn a inventory change submitting by Ola Electrical CFO Harish Abichandani.
Shares of the Bengaluru-based agency tumbled by 9.1 per cent to Rs 89.14 on Monday, with its market capitalisation falling under $4.75 billion for the primary time since Ola’s IPO itemizing in August.
Ola Electrical, which holds over 27 per cent share of the e-scooter market in India, receives over 80,000 buyer complaints each month, in line with a report by Mint. Lately, CEO Bhavish Aggarwal’s public spat with Indian humorist Kunal Kamra on X over Ola Electrical’s service high quality triggered an outpouring of anger and frustration from clients on social media.
Because you care a lot @kunalkamra88, come and assist us out! I’ll even pay greater than you earned for this paid tweet or out of your failed comedy profession.
Or else sit quiet and allow us to concentrate on fixing the problems for the actual clients. We’re increasing service community quick and backlogs… https://t.co/ZQ4nmqjx5q
— Bhavish Aggarwal (@bhash) October 6, 2024
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In response to Kamra’s picture purportedly exhibiting dozens of discarded e-scooters outdoors an Ola showroom, Aggarwal requested him to “sit quiet and allow us to concentrate on fixing the problems for the actual clients. We’re increasing service community quick and backlogs might be cleared quickly.”
In the meantime, HSBC analysts who dropped by a number of Ola service stations stated that the majority of them had “appeared overwhelmed by the service requests and had been struggling to offer ample service high quality,” in line with a report by Reuters. Final month, a person torched seven e-scooters at an Ola Electrical showroom in Karnataka after his complaints about an e-scooter he purchased final month had been allegedly ignored.
