Ola Electric Hires EY India To Fix Service Issues

Bengaluru-based Ola Electric has enlisted EY India to overhaul its troubled after-sales service operations. The latest hire also comes amid plummeting sales wherein Ola’s market shares dropped below 30 per cent. Coupled with rising customer complaints and the recent online feud with comedian Kunal Kamra that led to its shares tanking by 9 per cent, the brand has come under quite the scrutiny. 

However, the severity of Ola’s situation came to light when the Central Consumer Protection Authority (CCPA) served Ola Electric with a show-cause notice, citing over 10,000 unresolved service complaints. While the company did pledged to expand its service network from 400 to 1,000 centers by year-end, lack of proper quality service to existing centers have become one of the major issues and that should have ideally taken precedence over expansion.

Furthermore, internal challenges also complicate matters. Three service heads have resigned in the past two months, while the company faces scrutiny from ARAI over its recent pricing strategies. Though Ola has reported a temporary sales surge this month, with over 15,672 vehicles registered and a 34 per cent market share, analysts attribute this boost to aggressive festive season discounts rather than sustainable growth.

A team of EY executives has embarked on a three-month project to streamline Ola's business processes and optimise spare parts management. The initiative, personally overseen by Ola Electric CEO Bhavish Aggarwal, comes at a critical juncture for the company as it grapples with up to 80,000 monthly customer complaints flooding social media.

The company's problems extend beyond customer service to include software glitches and hardware defects. Despite claiming the discounted prices are part of a "limited-time festive campaign," Ola's long-term trajectory and future success in the electric two-wheeler market still looks sceptical with so many issues plaguing the brand.