Ola Electric: A Case of Ambition, Ego, and Failing Dreams
In recent years, Indian startup founders like Vijay Shekhar Sharma, Ravindran Byju, and Ashneer Grover were hailed as visionary leaders, riding high on innovation and market disruption. However, all three have since fallen due to overconfidence, ethical lapses, and a disregard for accountability. Now, a new name threatens to join this list of "bad boys" of the Indian startup ecosystem—Bhavish Aggarwal, founder of Ola Electric.
A Promising Beginning
Bhavish Aggarwal’s journey is impressive. An IIT graduate and one of the youngest billionaires in the world, he envisioned Ola Electric as India’s answer to Tesla. The company quickly rose to prominence as India’s largest electric vehicle (EV) manufacturer, but the ambition to emulate Elon Musk may have caused Bhavish to lose focus on core principles: quality and customer care.
The Downfall Begins
Ola Electric’s troubles became widely known when comedian Kunal Kamra tweeted a photo of scooters piled outside an Ola service center, asking if this was how customers were being treated. Bhavish responded by attacking Kamra personally, calling him a “failed comedian” and suggesting he work at the service center. This Musk-inspired reaction to critics, however, missed the core issue: the frustration of countless customers who have been complaining about Ola’s poor service for months.
The fallout from this exchange was swift. The next day, Ola Electric’s stock dropped by 9%, not because of Kamra's tweet, but because Bhavish’s arrogance triggered what is known as the "Streisand Effect," drawing even more attention to Ola’s customer service failures. His attempt to deflect criticism only worsened the situation, exposing the underlying issues at Ola.
 |
| Twitter Screenshot of Kamra vs. Aggarwal on 06 Oct. |
Ola Customers in Crisis: Reports by News Laundry
The depth of these issues was highlighted in a News Laundry investigation. A team visited Ola service centers and spoke to several frustrated customers, revealing that problems with Ola Electric run far deeper than just Twitter spats. Customers described ongoing issues with breakdowns, delays in service, and a complete lack of support from the company.
One customer recounted how their Ola scooter stopped working just days after purchase. After spending INR 8,000 on repairs, they were forced to hire a crane to send the scooter back to Ola’s service center. Another customer, overwhelmed by Ola’s poor after-sales service, set fire to their scooter in protest inside the showroom. This level of frustration is not isolated—it's echoed by many customers across India.
According to the report, more than 10,000 complaints have been officially lodged with the National Consumer Helpline against Ola Electric in the last year alone. These include 3,389 complaints about service delays, 1,899 complaints about delays in new vehicle deliveries, and 1,459 complaints about unfulfilled service promises.
At the heart of these problems is the Human Machine Interface (HMI), a key component in Ola’s scooters, which has a failure rate of 75%. The HMI, akin to the scooter’s operating system, often malfunctions, leading to widespread issues such as breakdowns and even fires. Instead of fixing these critical design flaws, Ola focused on selling more scooters, leaving a trail of unhappy customers.
Ignoring the Warning Signs
Despite these glaring issues, Ola Electric continued to press forward. A report from The Morning Context highlighted that Ola Electric is unlikely to turn a profit anytime soon. To break even, the company would need to sell 2.24 million scooters, a far cry from the 330,000 units it has sold so far. Bhavish Aggarwal, much like his counterparts in Paytm and Byju's, seems to have focused on growth at all costs, disregarding product quality and customer satisfaction in the process.
Lessons for the Startup Ecosystem
The problems plaguing Ola Electric are symptomatic of a larger issue within India’s startup ecosystem, where founders develop a "God complex," believing they are beyond reproach. Bhavish, once seen as a brilliant innovator, is now at risk of becoming the latest casualty of hubris.
News Laundry reported that the attrition rate at Ola Electric is over 50% annually, reflecting a toxic work culture where employees last an average of only 11 months. Senior executives like the CEO of Ola Cabs and the CFO of Ola Electric resigned within months of joining the company. Such high turnover, paired with the ongoing customer dissatisfaction, indicates that Ola Electric is struggling to maintain its momentum.
A Bleak Future?
As competitors like Hero, Bajaj, and TVS gear up to enter the EV market, Ola’s future looks uncertain. Despite its first-mover advantage, the company’s product flaws and service failures have led to a decline in market share. The Morning Context report concluded that Ola is only utilizing 35% of its production capacity, a troubling sign for a company that needs to scale rapidly to survive.
While Bhavish may have dreamed of becoming India’s Elon Musk, his inability to address the fundamental flaws in his product may lead Ola Electric down the same path as Byju's and Paytm. If Bhavish doesn’t change course, the company may soon find itself as another case study in the dangers of startup hubris.
Conclusion: Can Ola Be Saved?
The story of Ola Electric serves as a cautionary tale for the entire Indian startup ecosystem. Visionary founders must not lose sight of the basics—products must work, and customers must be respected. Without these, even the most ambitious dreams can quickly turn into nightmares.
It’s time for Bhavish Aggarwal to take a hard look at the company’s missteps and make the necessary course corrections. Otherwise, Ola Electric may soon be remembered as yet another example of a promising startup destroyed by its own ego.
