Advertisement

Ola Electric Shares Plunge 9% After Public Feud Sparks Service Concerns

Advertisement

Shares of Ola Electric, India's leading e-scooter manufacturer, plummeted 9% on Monday following a heated online exchange between the company's founder and a popular comedian. The controversy has reignited concerns about customer service issues at the SoftBank-backed firm, which is already grappling with declining sales.

The firestorm began when Indian stand-up comic Kunal Kamra shared an undated photo with his 2.4 million Twitter followers showing dozens of dust-covered Ola electric scooters parked outside what appeared to be a company showroom. The viral post opened floodgates to numerous complaints from other dissatisfied customers across social media platforms.

Ola founder Bhavish Aggarwal fired back at Kamra, suggesting the comedian should "sit quiet and let us focus on fixing the issues." Aggarwal emphasized that Ola is rapidly expanding its service network to address customer concerns.

The Bengaluru-based company, which currently commands 27% of India's booming electric scooter market, remained silent when approached for comments regarding Monday's stock plunge and ongoing service controversies.

Since its blockbuster market debut in August, Ola Electric shares have nosedived 43% from their peak value. The decline comes amid mounting social media criticism about after-sales support and shrinking market share - which has now declined consecutively for five months due to intensifying competition and persistent service complaints.

"Social media backlash undoubtedly impacts corporate reputation," noted Kranthi Bathini, equity strategy director at Wealthmills Securities. "This latest public spat will likely affect investor confidence in the short to medium term."

A recent HSBC analyst report added fuel to concerns after visits to multiple Ola service centers revealed most locations were "overwhelmed by service requests" while struggling with quality control issues and maintaining "huge backlogs" of pending repairs.

In response to these findings, Aggarwal announced plans last month to double OLA's service center count by December - expanding from current 500 locations nationwide.

A Reuters investigation last year uncovered similar challenges across 35 different OLA facilities spanning ten Indian states. Many locations reportedly struggled with severe repair backlogs caused by workforce shortages or insufficient spare parts inventory.

The situation turned alarming at one center where over hundred scooters sat waiting for repairs - many visibly neglected under layers of bird droppings.

Tensions escalated further last month when police arrested a disgruntled customer who allegedly torched an OLA showroom in southern India protesting unsatisfactory vehicle servicing.

Div >

watch Watch AD
Unlock More

Advertisement

Front page
Best Health Insurance in Singapore – What You Need to Know Before You Buy
Best Health Insurance in Singapore – What You Need to Know Before You Buy
Healthcare in Singapore is world-class, but medical costs can be overwhelming without the right coverage. That’s why getting the best health insurance Singapore has to offer is crucial for protecting your family and finances.
Older CareShield Life Policyholders to Benefit from Lower Premiums from 2026
Older CareShield Life Policyholders to Benefit from Lower Premiums from 2026
Singaporeans preparing for their long-term care needs can expect changes to CareShield Life that may reduce premiums for older policyholders starting in 2026. Announced during the passage of the CareShield Life and Long-Term Care (Amendment) Bill on October 15, the updates aim to maintain the scheme’s affordability and sustainability while continuing to provide essential financial protection for Singaporeans.
Aldar successfully prices $1 billion hybrid notes to accelerate growth agenda
Aldar successfully prices $1 billion hybrid notes to accelerate growth agenda
Aldar has successfully priced its $1.0 billion subordinated dated hybrid notes. The transaction attracted robust demand from a global institutional investor base, underscoring confidence in Aldar’s credit profile, and earnings outlook as it continues to deliver on its transformational growth strategy.Proceeds from the issuance are intended to support the continuation of Aldar’s growth agenda and its strategic priorities, including landbank replenishment, expansion of its develop-to-hold portfoli
UAE Economy Set for Strong Growth as World Bank Boosts 2026-2026 Forecasts
UAE Economy Set for Strong Growth as World Bank Boosts 2026-2026 Forecasts
The United Arab Emirates is poised for significant economic expansion in the coming years, with the World Bank substantially upgrading its growth projections through 2027. The nation's diversified economy continues to show remarkable resilience against global headwinds. In its newly released Global Economic Prospects report, the World Bank revised its UAE GDP forecasts upward by substantial margins - increasing the 2026 projection by 0.6 percentage points to a robust 4.6%, while boosting the 202