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 >

Advertisement

Advertisement

RECOM MENDED Find more
Carrefour Bids Farewell to Oman Market After Decades of Service
Carrefour Bids Farewell to Oman Market After Decades of Service
In a significant retail development, Carrefour has officially announced the end of its operations in Oman effective January 7, 2026. The supermarket chain, operated under exclusive rights by Majid Al Futtaim in the Sultanate, shared this emotional farewell through its official social media channels.
MEVP Achieves 5x Return with Strategic Exit as Japan's giftee Acquires Majority Stake in YGG
MEVP Achieves 5x Return with Strategic Exit as Japan's giftee Acquires Majority Stake in YGG
In a landmark deal for the Middle East's digital economy, Middle East Venture Partners (MEVP) has successfully exited its investment in YOUgotaGift (YGG), as Japanese eGifting giant giftee Inc acquires a controlling 91% stake. This strategic acquisition propels YGG into its next phase of global expansion while cementing its dominance in the GCC's booming digital gift card market.
Iran-Israel Tensions Threaten Global Oil Supply: Strait of Hormuz Closure Could Send Prices Soaring
Iran-Israel Tensions Threaten Global Oil Supply: Strait of Hormuz Closure Could Send Prices Soaring
The escalating conflict between Iran and Israel has sent shockwaves through global financial markets, with experts warning that a potential shutdown of the strategically vital Strait of Hormuz could trigger an oil price surge to $120 per barrel - threatening to derail inflation progress worldwide. Market analysts are sounding alarms as geopolitical tensions reach new heights in the Arabian Gulf region. The recent military exchanges have raised unprecedented concerns about a catastrophic supply d
Le Mans Legends: Where History, Speed and Investment Collide
Le Mans Legends: Where History, Speed and Investment Collide
Oil Prices Could Skyrocket Past $100 Amid Middle East Tensions, Analysts Warn
Oil Prices Could Skyrocket Past $100 Amid Middle East Tensions, Analysts Warn
The global oil market is bracing for potential turbulence as escalating tensions between Israel and Iran threaten to push crude prices beyond the $100 per barrel mark, energy experts cautioned this week.
Borouge and Adnoc L&S Forge 15-Year Mega Deal to Boost UAE Petrochemical Exports
Borouge and Adnoc L&S Forge 15-Year Mega Deal to Boost UAE Petrochemical Exports
In a landmark move set to transform the UAE's petrochemical landscape, Borouge has cemented a 15-year strategic alliance with Adnoc Logistics & Services Plc (Adnoc L&S) that will supercharge production capabilities and global export operations. The game-changing service agreement carries a minimum guaranteed value of $531 million (Dh1.95 billion), fueling Borouge's ambitious expansion strategy while delivering substantial operational efficiencies. The partnership is projected to generate over $5