Bhavish Aggarwal of Ola Electric, caught in a perfect storm: within hours of an open spat with comedian Kunal Kamra on the social media network X, the company received a showcause notice from the Central Consumer Protection Authority over consumer rights infringement.
The social media spat intensified when Kamra posted a picture of a long queue of Ola scooters parked outside its service centers. From non-working help desk services this wave of complaints spread to manufacturing defects. Aggarwal took up the defense by calling Kamra’s tweet “paid” and unleashed some personal attacks.
Negative publicity and regulatory scrutiny have dented Ola Electric’s stock price. Its shares hit an all-time low since its debut listing, which signals investors’ concern about the future of the firm.
It reflects an increasing significance of social media for businesses. A single viral post can soon tarnish a company’s reputation, and perhaps losses are heavy when that is coupled with fraud. It also emphasizes transparency and responsiveness in a company towards its customers’ perspectives.
In the light of such situations, Ola Electric needs to increase customer satisfaction and rectify the grievances which have led to the ill reputation. The company may face long-term viability issues.
