Ola Electric Responds to Customer Concerns with New Service Initiative

On Thursday, Ola Electric, the Bengaluru-based electric vehicle manufacturer, announced the formation of a new service team to handle the increasing complaints it has been receiving. Sources said the company is now grappling with around 80,000 complaints per month, sometimes reaching 6,000 to 7,000 in a day. This has compelled the company to take action in changing its service operations and attempt to regain customer confidence.

Rising Complaints and Delay of Service

Most complaints are related to service issues, with customers pointing to excessively long waiting times and a lackluster support system at service centers. Many of the complaints mention delays in repairs, even after availing the premium service called Ola Care Plus, which promises home pick-up and drop-off for repairs. Despite this, wait times range between 30 to 45 days. This has left many distraught customers who have flocked to social media sites to raise such complaints.

Most of these complaints include:

Battery Failure: Many customers complain that their scooters’ batteries fail within the first week of purchase.
Mechanical Defects: Customers have pointed out that their scooters have mechanical defects and could not be used, raising concerns about the quality control systems at Ola Electric.

As the repair work does not come with status updates on time, many frustrated customers feel neglected by the company. An incident that made headlines in Kalaburagi, Karnataka, involved an owner setting an Ola Electric showroom on fire after purchasing a scooter and facing inadequate support multiple times from customer service. Such extreme acts illustrate the frustration of a growing number of users who feel neglected and mistreated by the company’s customer service.

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Building a New Service Team

In response to these challenges, Ola Electric allegedly transitioned some of the employees from the product and operations departments to work on building a dedicated services team. The new team will focus solely on service operations and address the backlog of complaints that have overwhelmed existing service center staff. The company has 430 service centers in India, but most are overcrowded and understaffed, worsening delays in addressing customer grievances.

The new service team aims to achieve:

Lean Operations: Streamline repair handling procedures and be responsive to customer inquiries.
Staff Training: Upgrade customer service and technical support to enhance the overall customer experience.
Improved Communication: Provide timely and accurate updates to customers about their vehicle’s status.

A sharp decline in sales has led to an increase in grievances. On August 31, 2024, Ola Electric sold 27,506 units, reflecting a 34% decrease compared to July’s sales figures. Ola’s market share fell from 39% to 31%, allowing Bajaj Auto and TVS Motor Company to solidify their positions in the electric two-wheeler market.

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This decline stems from several causes, including:

Quality Control Issues: Customers have raised critical issues regarding the quality control of Ola’s scooters, deterring potential buyers.
Competitive Landscape: Competitors are offering reliable products and robust customer support, creating significant challenges for Ola Electric in maintaining its market share.
Negative Public Perception: Increasing complaints against the brand are creating a negative perception, causing consumers to lose trust and interest in purchasing.

The overall public response on social media regarding Ola Electric’s handling of customer complaints is very negative. Some customers are directly protesting the company’s practices. One frustrated customer even pasted a placard on her scooter, warning potential buyers not to purchase an Ola Electric vehicle due to her poor experience.

Aggrieved customers are sharing their experiences on social media and other platforms. The hashtag #OlaElectricFail is gaining traction as many people voice their complaints against the company. This kind of public outcry will be a mountainous challenge for Ola Electric in an increasingly competitive market. In this crisis, the newly established service team will play a crucial role in trying to regain consumer confidence. Quality control and customer services need to be improved not only after this crisis but also for a long time.

Strategic Initiatives Going Forward

There are several strategic initiatives that Ola Electric will undertake to regain market share through better after-sales service:

Customer Feedback Loops: A process to collect customer feedback after services rendered will help extract and flush out repeated problems, thus improving satisfaction ratios over time.
Partnerships with Local Mechanics: Collaborating with local mechanics or third-party servicing entities can reduce the pressure on existing service hubs and shorten repair times.
Realistic Expectations: Educating customers about terms, timelines related to repair, and lead times for securing parts is essential to inculcate realistic expectations in customers’ minds.

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Conclusion

In brief, while Ola Electric has made tremendous strides to emerge as a leader in the Indian electric vehicle market, it faces enormous challenges that jeopardize its future unless addressed urgently and effectively. Setting up a dedicated service team is a step forward, but it will require greater efforts to overcome the challenges and achieve long-term sustainability in such a competitive landscape.