Diksha Mittal
7 Oct 2024
Ola Electric’s market capitalisation fell below $5 billion for the first time since its August listing, largely due to rising customer complaints about after-sales service, software glitches, and hardware issues. In September, its market share in the electric two-wheeler segment dropped to 27.9%. CEO Bhavish Aggarwal aims to address these challenges by doubling service centers under the ‘Hyperservice’ campaign.
Ola Electric's market capitalisation slipped below $5 billion on Monday, the first time since it listed in August.
Ola has been receiving customer complaints regarding after-sales service, software glitches and hardware problems, which experts say have contributed to the decline in sales of its scooters.
On Sunday, the company’s chief executive officer, Bhavish Aggarwal, had reacted sharply to comedian Kunal Kamra’s comment on microblogging platform X regarding service issues with Ola’s e-scooters.
Last month, the company's market share in the domestic electric two-wheeler segment dropped to 27.9%, according to data from government portal Vahan. The same month, other players including Bajaj Auto, TVS Motor and Ather Energy, recorded market shares of 21.4%, 20.2%, and 14.8%, respectively.To counter its after-sales challenges, Aggarwal had earlier announced that the company will double its service centres to 1,000 by December, as part of its ‘Hyperservice’ campaign.
At 1:11 pm, the shares of Ola Electric were trading at Rs 90.49 on the BSE, down from the previous close of Rs 99.05. Its share price has dropped by over 42% from its listing high of Rs 157.5.
