Disclosure: Not invested as of now, had exited earlier position almost flat. Looking to re-enter at a price which factors in all the negatives.
When asked about customer complaints and quality issues, below was the management’s response (briefed using NotebookLM again ):
- Ola received a high volume of service requests, with press reports suggesting figures of 80,000 to 90,000 per month. [1, 2] However, the company clarified that these requests were not solely complaints or issues with the product. [2] A large proportion of these requests were for routine checks, scheduled maintenance, and minor issues. [2]
- Ola acknowledged experiencing capacity challenges at their service centres as sales growth outpaced service network expansion. [1, 3] This resulted in a backlog of service requests. [1, 3] Ola stated that they resolved the backlog and increased service capacity. [3] 80% of service requests are now addressed within one day, bringing them in line with industry standards. [3]
- Ola’s product quality is generally in line with industry standards in India and globally, based on defects per 100 vehicles and warranty replacement rates. [4]
- Gen 2 scooters reportedly show better quality than Gen 1, leading to reduced warranty costs. [4] Ola expects further reductions in warranty costs with the Gen 3 scooters. [4] The improvements in Gen 3 include a move to a mid-mounted motor across the platform to reduce quality issues. [4] The company anticipates a tenfold improvement in motor quality alone. [4]
Overall, the sources provide limited information on specific customer complaints. They do indicate that Ola experienced service capacity issues that led to a backlog of requests. However, the company addressed the backlog and stated their product quality is in line with industry standards. They highlight improvements in each generation of their scooters and anticipate further quality enhancements with Gen 3.
(NotebookLM breif ends)
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