In a bid to tackle escalating customer complaints and dwindling sales, Ola Electric has reportedly assembled a new service team.
What Happened: The electric scooter manufacturer based in Bengaluru has been inundated with nearly 80,000 complaints every month, with some days witnessing up to 7,000 complaints, according to a report by Mint. The company’s service centres are reportedly grappling with the high volume of complaints, resulting in prolonged delays and customer dissatisfaction.
To tackle this, the electric vehicle maker has reportedly pulled employees from the product and operations divisions to form a new team that will focus on its service operations.
Simultaneously, Ola Electric’s sales have been adversely affected. In August, the company recorded its lowest monthly volumes for the year, selling 27,506 units — a 34% drop from July. Its market share also dipped to 31%, while competitors Bajaj Auto and TVS Motor Company held their ground in the electric two-wheeler market.
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At least 10 customers of Ola Electric, that Mint spoke with, reported facing significant challenges in booking service slots, despite subscribing to Ola Care Plus, a paid service plan that enables users to schedule home pick-up and drop-off appointments. Repair wait times have reached as high as 30 to 45 days for them.
Customers have taken to social media to express their frustrations but despite the company’s attempts to enhance its service response, widespread dissatisfaction among customers remains unresolved.
Earlier this month, a disgruntled Ola customer set the company's showroom on fire in Kalaburagi city in Karnataka after not receiving support for his newly purchased vehicle. The customer reportedly approached the company several times but was dissatisfied with their response.
Last week, HSBC flagged the company’s recent market share loss as a risk but a recent note by Bank of America and Goldman Sachs, initiating coverage on the stock, projected a 35%-50% upside.
Price Action: Ola Electric was trading flat at ₹117.95 on Wednesday afternoon.
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