“Failed comedy career”: Ola CEO Bhavish Aggarwal responds to Kunal Kamra in Twitter exchange over service issues amid stock plunge
Stock prices plummet as Ola electric struggles with customer complaints and public relations in the competitive EV market.
Ola Electric, led by Bhavish Aggarwal, has witnessed a dramatic fall in its stock price, dropping to approximately ₹90 per share during morning trade on Monday. This decline follows an influx of complaints from dissatisfied customers regarding its flagship electric two-wheeler, the S1 series, which has been plagued by numerous hardware and software issues.
The company’s shares fell by 8.5% from the previous trading session, marking a stark decline from its debut price of ₹76 and an all-time high of ₹157.40. Since reaching this peak, Ola Electric’s stock has plummeted by approximately 42-43%. This downward trend has raised concerns about the company’s market position and overall viability, particularly as competition intensifies within the Indian electric vehicle (EV) sector.
Declining market share and sales
Ola Electric’s market share in the Indian EV market has also taken a hit, dropping to 27% in September amid fierce competition from rival companies. The firm’s sales figures reflect this struggle, with only 24,665 e-scooters sold in September, down from 27,587 units in August, according to data from the government transportation portal Vahan.
A heated exchange with Kunal Kamra
The ongoing service challenges were further amplified by a recent heated exchange between Bhavish Aggarwal and comedian Kunal Kamra on X. Kamra posted an image of an Ola dealership filled with scooters gathering dust, questioning the viability of EV adoption in India and tagging key government officials. In a defensive response, Aggarwal accused Kamra of posting a “paid tweet,” offering to pay him more than he supposedly earned. He added, “We’re expanding the service network fast and backlogs will be cleared soon.”
Aggarwal’s remarks sparked controversy, with many users criticizing his tone as “arrogant.” Comments highlighted the plight of middle-class consumers, with one user lamenting the struggle of saving months to purchase an Ola scooter, only to face issues shortly after.
Ongoing customer complaints
Customer dissatisfaction has been mounting, with reports detailing issues such as malfunctioning hardware, glitchy software, and difficulty in obtaining spare parts. The company’s service centers have also faced criticism for poor conditions and inadequate support. Reports indicate that Ola Electric receives around 80,000 complaints each month, highlighting the growing frustration among its customer base.
The situation escalated to the point where an aggrieved customer set fire to an Ola Electric showroom in Karnataka last month, illustrating the depth of discontent. This incident has drawn significant media attention and raised alarms about the company’s customer service practices and product reliability.
As Ola Electric navigates these turbulent waters, trade analysts have noted that the stock is currently trading at high valuations despite being loss-making. The company faces the dual challenge of addressing customer complaints while also competing against rivals that have introduced newer models at similar price points.
The future of Ola Electric hinges on its ability to resolve these critical issues and restore customer confidence in its products. With the EV market becoming increasingly competitive, the company must act swiftly to enhance its service quality and product reliability to regain its footing in the industry.
You might also be interested in – Netflix under investigation in India for visa violations and racial discrimination
