The Department of Consumer Affairs has initiated an investigation into Ola Electric's claim of resolving 99% of over 10,000 customer complaints concerning its electric scooters, as reported by The New Indian Express. This inquiry follows a show-cause notice from the Central Consumer Protection Authority (CCPA) earlier this month, triggered by numerous complaints about Ola's after-sales service.
According to sources cited in the report, the department is not only scrutinising Ola's claim but also intends to contact affected customers directly to confirm their satisfaction with the company's redressal process.
Ola Electric maintains that it has a robust mechanism for addressing customer concerns. In its response to the CCPA, the company asserted that 99.1% of the 10,644 complaints routed through the CCPA were resolved to customers' satisfaction. Ola submitted this statement to the stock exchanges to reassure both regulators and investors of its dedication to resolving customer issues.
However, this high satisfaction rate has been met with public scepticism, partly due to ongoing complaints and criticism from public figures like stand-up comedian Kunal Kamra, who has questioned Ola's after-sales service standards.
Kamra has been a vocal critic of Ola Electric, frequently highlighting customer dissatisfaction on social media. Recently, he shared a post sarcastically stating he would "accept" a role at Ola after being tagged in numerous customer complaints. In his post, Kamra offered several recommendations for improving Ola's customer service, such as a 7-day repair timeline, daily compensation for delays, and free service insurance with every new scooter.
Kamra also tagged Transport Minister Nitin Gadkari in an earlier tweet, calling for government intervention and pointing out issues like long repair delays and inadequate service support. His posts have amplified customer complaints and increased pressure on Ola to enhance transparency and responsiveness.
Ola's service challenges have drawn significant attention recently, with the CCPA notice adding regulatory scrutiny to the public backlash. On 8 October, following the public disclosure of the notice, Ola's shares fell by 6%, highlighting the potential impact of customer dissatisfaction on the company's business.
Ola CEO Bhavish Aggarwal had previously defended the company's service network, promising improvements and dismissing Kamra's criticism. Despite these assurances, complaints from Ola customers continue to surface on social media, and the Department of Consumer Affairs' investigation suggests that the company's claims may face further examination.
The Department of Consumer Affairs' decision to verify Ola's claims by directly contacting customers could offer a clearer insight into the company's service quality. Should discrepancies be found between Ola's statements and customer feedback, it could result in additional regulatory actions and possibly a revision of Ola's reported satisfaction rate.