Ola Electric Brings In EY To Fight Customer Service Woes

Ola Electric has reportedly brought in consulting service firm EY India for a “service transformation” in response to increasing after-sales service challenges, surge in customer complaints and falling sales volumes.

According to ET, citing sources, EY is expected to advise Bhavish Aggarwal’s Ola Electric on various service-related areas, including streamlining business operations and improving spare parts stocking and inventory management.

Inc42 has reached out to Ola Electric for comments on the development. The story will be updated based on the response. 

Additionally, the report said that nearly a dozen EY executives joined Ola Electric a few weeks ago on a three-month deputation to address the ongoing crisis. Their role includes helping the company manage the immediate challenges while setting up improved processes and systems, with the project duration potentially being extended based on the results.

“EY is helping Ola in streamlining the business processes, inventory management of spare parts and improving an on-ground presence in places where it has sales but no service,” a source told ET.

Availability of spares and people who can deliver services has been a major issue, he added.

Aggarwal is closely involved in the whole process with the team, the person added.

This development follows viral images of Ola Electric vehicles left unused at service centres and a surge in customer complaints—reportedly reaching 80,000 per month—drawing the attention of consumer watchdogs and policymakers.

The company has been under increasing scrutiny due to mounting customer complaints about its after-sales service. Last week, Aggarwal engaged in a public spat on social media with comedian Kunal Kamra, who drew attention to these issues, sparking a heated exchange.

Meanwhile, the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric over alleged consumer rights violations, misleading advertising, and unfair trade practices. 

Following the incident, Ola Electric was instructed to implement consumer-focused changes, including issuing refunds and providing receipts for auto rides. On October 10, the company’s stock dropped by 6%. Since reaching its post-listing peak of INR 157 in August, the stock has seen a decline of nearly 44%.