Ola Electric Engages EY for Service Overhaul Amid Mounting Complaints, CCPA Notice and Kunal Kamra poking

Ola Electric, one of India’s electric two-wheeler companies, has enlisted the services of global consulting firm EY (Ernst & Young) to address growing after-sales service issues and customer dissatisfaction. The decision comes as Ola Electric faces increasing scrutiny over its service quality, with thousands of complaints and a noticeable decline in customer satisfaction and sales. Bhavish Aggarwal had recently even got into a public spat on X with a popular Indian standup comedian and activist, Kunal Kamra, over Ola Electric’s poor service record. Kunal Kamra, to this day, continues to pull up Ola Electric and Bhavish Aggarwal with his relentless posts, gathering a considerable base of responses from people sharing their experiences with Ola Electric. This is when the Central Consumer Protection Authority (CCPA) issued a show-cause notice.

Ola electric hasn’t disclosed any plan to issue refunds or put an end date to current customer complaints. We don’t even know
If there is a plan…
All I can do is Let @bhash know that he has to put out a public plan which doesn’t include employing me.

— Kunal Kamra (@kunalkamra88) October 17, 2024

Numerous reports indicate that Ola Electric, led by CEO Bhavish Aggarwal, has been struggling with after-sales service. Many customers have voiced frustrations over delays in repairs, the unavailability of spare parts, and inadequate service personnel. The issue has become so widespread that complaints have frequently gone viral on social media, drawing the attention of consumer watchdogs and policymakers.

So, what seems to be an acknowledgement of the problem, Ola Electric appears to have finally engaged EY India in the quest for a solution. EY India has been brought on board to help the company conduct a thorough “service transformation.” This will involve streamlining processes, improving inventory and spare parts management, and optimizing the service delivery system. The consulting firm’s team, consisting of around a dozen executives, has already joined Ola Electric for an initial three-month period. If the collaboration proves successful, the engagement may be extended.

A key challenge Ola Electric has faced is its inability to provide timely and effective service in areas where vehicle sales are strong, but service infrastructure remains weak. The company hopes to meet the growing demand for better after-sales support by improving these operations. Bhavish Aggarwal personally overseeing the process signals its strategic importance to the company.

The urgency of this service overhaul is compounded by a recent show-cause notice issued to Ola Electric by the Central Consumer Protection Authority (CCPA). The notice by CCPA, citing potential violations of consumer rights, misleading advertising, and unfair trade practices, highlighted over 10,000 unresolved customer service complaints. Ola Electric is now under pressure to not only improve its services but also regain public trust.

In response to the crisis, Ola announced plans to increase its network of service centres from 400 to 1,000 by the end of the year. However, industry experts have warned that merely expanding the number of service centres will not resolve the underlying quality issues. Instead, the company needs to focus on enhancing the efficiency and effectiveness of its existing service stations.

Despite these challenges, Ola Electric saw a temporary boost in sales during the festive season due to heavy discounts. However, analysts caution that this uptick may be short-lived and that the company needs to address its long-term service challenges to maintain market momentum.