Tue Oct 08 09:51:48 UTC 2024: ## Ola Electric Faces Consumer Protection Scrutiny Amidst Falling Market Share

Electric scooter giant Ola Electric is facing growing pressure from both consumer protection authorities and the market. The Central Consumer Protection Authority (CCPA) has issued a show-cause notice to the company, alleging violations of consumer rights, misleading advertising, and unfair trade practices. This action follows a surge in customer complaints against Ola, reaching an estimated 80,000 per month.

The CCPA notice comes at a time when Ola Electric’s market share has been declining steadily. From a peak of 49% in June, the company’s market share fell to 27% in September. This decline coincides with a 9% drop in Ola Electric’s share price, fueled by CEO Bhavish Aggarwal’s public social media exchange with comedian Kunal Kamra regarding customer issues.

Ola Electric has assured stakeholders that neither its financials nor operations are affected by the CCPA notice and will respond within the stipulated 15-day timeline. However, the company’s financial performance has also been impacted, with revenue growth slowing down to just 2.8% in the June quarter.

Adding to the pressure, Ola Electric’s Secretary and Compliance Officer resigned on Monday, citing personal reasons and commitments. This comes amidst the company’s ongoing challenges, including declining market share, rising customer complaints, and the CCPA’s scrutiny.

The news has sparked concerns about Ola Electric’s ability to address its growing issues and maintain its position in the competitive electric scooter market. It remains to be seen how the company will respond to the CCPA’s notice and if it can regain lost ground in the coming months.

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