Several concerns over the quality of Ola Electric’s electric scooters and services have brought the company under intense scrutiny.
A second investigation into the matter has been requested by the Central Consumer Protection Authority (CCPA), and the Bureau of Indian Standards (BIS) will be involved for verification.
Ola electric scooter in big trouble
10,644 complaints The complaints were filed against Ola Electric at the National Consumer Helpline (NCH) between September 2023 and August 2024.
Ola Electric received a show cause notice from CCPA on October 3, pointing out violation of consumer rights, misleading advertising, unfair commercial practices and service deficiencies.
This warning was sent to Ola Electric, which had fifteen days to respond.
According to Ola’s October 21 statement, 99.1% of its customers were happy with the way their complaints were handled.
Through NCH call agents, CCPA contacted a sample of 287 customers to conduct cross-verification.
Out of 287 consumers, only 130 could be contacted.
Only 130 out of 287 consumers could be contacted and 103 of them (79.2%) complained about the way the company dealt with their issues. According to sources, “Out of 287 consumers, NCH call agents called, 130 consumers were connected, and of which (79.2%) 103 were not satisfied with the company’s response. This was just a sample test to confirm Ola’s claims. If they are claiming 99% satisfaction, this should be reflected in the cross-validation as well.’
The cross-verification results refuted Ola’s claim of 99.1% satisfaction.
Even after concerns were reportedly answered, many consumers continued to report problems, and some cases were closed without resolution.
CCPA has asked BIS to verify Ola’s statements and submit a detailed report within a period of 15 days.
The findings of the investigation may have additional implications for Ola Electric’s position and customer confidence.
Ola will implement refund option for customers
The government directed cab aggregator Ola to implement a mechanism that can help customers choose their preferred method of refund.
CCPA, the Central Consumer Protection Authority under the Ministry of Consumer Affairs, Food and Public Distribution, directed Ola to provide a bill, receipt or challan for every auto ride booked through its platform.
The Bhavish Aggarwal-led cab aggregator appears to be implementing customers’ choice to seek refunds and provide receipts for auto rides, as they are required by the CCPA, following multiple complaints about unfair practices.
With this latest move, the regulator is emphasizing that the existing policies violate consumer rights.