CCPA slams Ola Electric! Sets 15-day timeline to respond for rising Complaints
Due to robust consumer complaints, the ride hailing platform Ola Electric has gotten a show-cause notice from the CCPA – Central Consumer protection authority by naming the alleged violation of user rights, misrepresentative ads and partial practices.
This breaking news followed a 9 percent decline in the share price of Ola electric, propelled by the company’s CEO Bhavish Aggarwal’s social media controversy with comedian Kunal Kamra regarding the customer issues. The firm intends to respond to the show-cause notice within 15 day timeline period given by CCPA. In addition, the market share of Ola has fallen to 27 percent in the month of September, declined from 39 percent in the month of July.
As per the disclosure by Ola Electric, the CCPA – Central consumer protection authority issued a show-cause notice citing alleged violations of customer right and unfair trade prices.
Likewise, as per the latest research report, Ola Electric received nearly 80,000 consumer complaints per month.
For the June quarter – Q1 FY25, the revenue rate of from Ola Electric from core operations surged by only 2.8 percent touching 
1,644 crore up from 1,598 crore in Q424. Though the firm managed to cut down its losses by 16.6 percent, making them down to 347 crore in Q1FY25.
1,644 crore up from 1,598 crore in Q424. Though the firm managed to cut down its losses by 16.6 percent, making them down to 347 crore in Q1FY25.
For reference, this sudden escalation from CCPA is due to the company's poor service. Ola Electric and its Founder, Bhavish Aggarwal, are currently facing a social media storm. Stand-up comedian Kunal Kamra's initial tweet criticizing Ola's service escalated into a verbal duel between the two, with irate customers and even market participants joining in.
Kamra quoted Bhavish Aggarwal's tweet on Sunday, which featured an image of the Ola Gigafactory. A photo of numerous Ola Electric two-wheelers laying outside what looks to be an Ola showroom was included in Kamra's tweet.
