Ola Electric shares jump 4% after resolving 99.1% of 10,644 complaints from CCPA

ETMarkets.comLast Updated: Oct 22, 2024, 09:46:00 AM IST

Synopsis

Shares of Ola Electric Mobility surged 4.45% after it announced the resolution of 99.1% of over 10,000 complaints received from the CCPA. Despite recent declines, the company emphatically addressed criticisms concerning service delays, delivery issues, and misleading advertisements just before the regulatory deadline.

Shares of Ola Electric Mobility today jumped 4.45% to their day’s high of Rs 85.30 on the BSE after the company announced that it has resolved approximately 99.1% of the 10,644 complaints received from the Central Consumer Protection Authority (CCPA).

In a stock exchange filing, the company said, "We wish to reiterate that Ola Electric has a robust mechanism to address complaints raised with respect to our vehicles. In fact, we wish to emphasize that out of 10,644 complaints that we received from the CCPA, 99.1% of the complaints were resolved to the complete satisfaction of the customer as per Ola Electric’s robust redressal mechanism."

The announcement comes just a day before the October 22 deadline set by the CCPA. On October 7, the authority issued a show-cause notice to Ola, demanding an explanation for the handling of numerous consumer complaints, giving the company 15 days to respond.

Out of the total complaints, 3,364 pertained to slow service and repairs, 1,899 were related to delayed deliveries of Ola’s electric scooters, and 1,459 highlighted unfulfilled service promises, leading to widespread consumer dissatisfaction. Additional complaints pointed to misleading advertisements that exaggerated the performance, features, and availability of its products.

On Monday, Ola Electric's shares closed at Rs 81.66, down 6.1% on the BSE, while the benchmark Sensex fell 0.09%. Its shares have declined 26% in the last one month and 48% from their all-time high of Rs 157.40, with the company currently holding a market capitalization of Rs 36,018 crore.

In Q1 FY25, Ola Electric reported a 32% increase in revenue to Rs 1,644 crore, while its net loss widened to Rs 347 crore, compared to a loss of Rs 267 crore in the same period last year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

...moreless

...moreless