Ola Electric is India’s top e-scooter maker by market share. The company reported a narrower second-quarter loss on Friday. This was helped by a jump in sales. Moreover, the company stated that the recent surge in service requests was largely for “minor issues.”
The Bengaluru-based company’s consolidated loss narrowed to 4.95 billion rupees ($58.7 million) in the July-September quarter from 5.24 billion rupees a year earlier. Additionally, Ola’s quarterly revenue jumped 39.1% to 12.14 billion rupees, fueled by sales of mass models, or those priced below 100,000 rupees (about $1,186). It’s worth noting that these models were not yet available last year.
However, rising consumer complaints and regulatory scrutiny have emerged. Allegations of poor service have cast a shadow on the SoftBank-backed e-scooter maker. This happens despite its stellar market debut in August.
Ola Electric delivered a total of 98,619 two-wheelers between July and September, a 73.6% increase from the previous year. Of these, 56,545 were mass models. Furthermore, expenses grew by 21.8%, a slower pace than the previous quarter’s 26.6% rise. Raw material costs, Ola’s largest expense, increased by 46.7% but decreased by 18.2% sequentially.
Amidst these challenges, Ola claims to have resolved 99.1% of customer complaints, suggesting that the company is actively addressing service quality concerns.