Ola CEO Bhavish Aggarwal in Controversy Amid Consumer Complaints

Ola Electric, a major player in the electric two-wheeler market, is facing significant scrutiny following a public spat between its CEO, Bhavish Aggarwal, and comedian Kunal Kamra. The exchange, which took place on the social media platform X, has brought to light various consumer grievances regarding Ola’s service quality at its centers.

The disagreement began when Kunal Kamra posted a complaint on X about the state of Ola service centers, sharing an image of numerous EV scooters parked at a facility and questioning the reliability of the service. Kamra highlighted the importance of these vehicles for daily wage earners and asked consumers facing issues with Ola Electric to share their stories.

Bhavish Aggarwal responded to Kamra’s posts, calling them “paid tweets” and invited him to assist in resolving the issues while promising to pay more than what Kamra would earn from his comedic career. Aggarwal stated, “Since you care so much Kunal Kamra, come and help us out!”

Kunal Kamra retorted by challenging Aggarwal’s accusation of a paid engagement, stating he would delete his social media accounts if it was proven. He also called for greater accountability from Ola, suggesting a full refund for unsatisfied customers who have purchased Ola Electric vehicles in the past four months.

In response to the ongoing issues, the Central Consumer Protection Authority (CCPA) has issued a show cause notice to Ola Electric for alleged violations relating to consumer rights and misleading advertisements. This follows reports of malfunctioning hardware and software glitches in Ola scooters, which have led to significant consumer dissatisfaction.

Nidhi Khare, Consumer Affairs Secretary, stated that a class action against Ola is being considered due to the several complaints filed. Ola has been provided a 15-day period to address the concerns, after which the ministry may proceed with legal action if not satisfactorily resolved.

The company’s stock has experienced a notable decline, dropping over 8% recently, and a continued decrease in sales has been reported. Ola Electric’s market share has fallen from over 50% in April to just 27% in September.

The growing consumer grievances include issues such as misrepresented obligations during free servicing, excessive charges, manufacturing defects, and misleading sales practices. The CCPA has the authority to levy penalties of up to Rs 10 lakh for misleading advertisements.

This situation is reminiscent of previous class actions pursued by the Consumer Affairs Ministry, which have resulted in substantial remedies for affected consumers, including significant refunds during the COVID-19 pandemic.