The Rise and Fall of Indian Startup Ola Electric

 

Indian startups have gained significant global attention in recent years, with names like Paytm, Byju's, and Ola Electric leading the charge. These startups were hailed as disruptors, with charismatic founders at the helm—Vijay Shekhar Sharma (Paytm), Byju Raveendran (Byju's), and Bhavish Aggarwal (Ola Electric). Each of them enjoyed astronomical success, but there’s a common thread among their stories: an overinflated sense of invincibility, or what some call the "God complex." Today, all three are facing major challenges that have put their companies, and reputations, on the brink. This post takes a deep dive into how Bhavish Aggarwal's Ola Electric, once touted as India’s answer to Tesla, is now grappling with severe issues that could lead to its downfall.

From Visionary to Crisis: The Bhavish Aggarwal Story

Bhavish Aggarwal, founder of Ola Electric, was once seen as India’s Elon Musk—a visionary leader disrupting the country's transportation landscape. With an ambitious goal to revolutionize electric vehicles (EVs), Aggarwal pushed Ola Electric to the forefront of the Indian EV market. His vision was grand, but the execution? Far from flawless.

While Bhavish and Ola Electric achieved initial success, the cracks in the foundation have become all too apparent. In recent times, complaints about the company's electric scooters have skyrocketed, sparking a serious conversation about whether this Indian startup giant has gone too far, too fast.

A PR Nightmare: The Twitter Feud with Kunal Kamra

One of the most telling moments of Bhavish Aggarwal's leadership flaws was his public spat with Indian comedian Kunal Kamra. It all began when Kamra tweeted a picture of a long line of Ola scooters outside a service center, questioning the company’s treatment of its customers. Instead of addressing the issue, Bhavish fired back, attacking Kamra personally and dismissing the concerns as mere trolling.

This move backfired spectacularly. Instead of deflecting criticism, it intensified it. The Streisand Effect—where an attempt to suppress information leads to even greater attention—was in full swing. Bhavish’s arrogance in handling the situation only worsened the public perception of the brand.

Ola Electric's Growing List of Problems

Ola Electric’s problems go well beyond PR missteps. The company has faced a mounting number of complaints related to its electric scooters. Customers have reported serious issues, ranging from battery failures and software malfunctions to scooters catching fire. A report from The Morning Context even suggested that Ola’s electric scooters have a shockingly high failure rate in one of their core components—the Human Machine Interface (HMI), which controls the scooter's electronics.

The failure rate for Ola’s HMI system is reported to be around 75%, meaning 3 out of 4 scooters could have major issues. Ola’s manufacturing practices and aggressive push for rapid expansion seem to have sacrificed quality for speed, and customers are now paying the price.

Regulatory Scrutiny and Legal Battles

Ola Electric's operational issues haven’t gone unnoticed by Indian authorities. The Central Consumer Protection Authority (CCPA) sent the company a notice following the surge in customer complaints. According to official data, over 10,000 complaints were registered against Ola Electric in the last year alone. Issues such as delayed services, delivery problems, unfulfilled promises, and unresolved technical faults are just a few of the grievances.

As regulatory scrutiny intensifies, it raises the question: how did things get this bad?

The Overhype and Overpromise

Ola Electric’s problems are not just about technical failures or customer service delays; they stem from a broader issue—a culture of overhype and overpromise. Bhavish Aggarwal’s aggressive push to position Ola as a global EV leader may have worked in the short term, but the long-term impact is telling a different story.

At one point, Ola was boasting about being the largest EV company in the world. However, a closer look at their presentations reveals a key caveat—this statistic excludes China, the largest EV market globally. The reality is that Ola’s market share in India’s overall two-wheeler space, which includes both electric and petrol vehicles, is a mere 2%. The company has only sold around 330,000 scooters, far below the 2.2 million units it needs to break even, according to internal reports.

The Fall of a Unicorn?

Ola’s problems extend beyond its electric scooters. Aggarwal has shifted focus from one failed venture to another. Ola Cabs, once a dominant player in India’s ride-hailing space, is now struggling to keep up with competitors. Other ventures like Ola Dash, Ola Food, and Ola Financial Services have quietly shut down or are on the verge of collapse. Despite these challenges, Bhavish has received continued support from investors, but how long will that last?

Lessons from the Tesla Playbook

Bhavish Aggarwal often compared himself to Elon Musk, but there’s a key difference between the two. While Musk has successfully built multiple profitable companies and managed to correct course when needed, Bhavish’s ventures have been riddled with failures. Musk’s companies like Tesla and SpaceX command fanatical customer loyalty, while Bhavish’s Ola Electric is struggling to maintain basic customer satisfaction.

Musk is known for his controversial tweets, but even he knows when to backtrack and apologize. Bhavish, on the other hand, hasn’t acknowledged any missteps, choosing instead to double down on his bravado.

Can Ola Electric Be Saved?

The future of Ola Electric remains uncertain. With an ever-growing list of dissatisfied customers, technical failures, regulatory scrutiny, and dwindling investor confidence, the company faces an uphill battle. Aggarwal’s next venture, Krutrim AI, may be his attempt to pivot away from the mess at Ola Electric, but without addressing the core issues in his leadership style and company culture, the problems are likely to follow him.

Ola Electric once had the potential to transform India’s EV market, but its rapid decline serves as a cautionary tale for other startups. Vision and ambition can only take a company so far. At some point, the fundamentals—customer trust, product quality, and responsible leadership—must catch up, or the fall will be as rapid as the rise.

Final Thoughts: The Ripple Effect on India's Startup Ecosystem

Ola’s struggles are not just a story of one company’s downfall; they reflect deeper issues in India's startup ecosystem. Companies that focus too much on scaling quickly while ignoring product quality and customer service are bound to face the consequences sooner or later. Bhavish Aggarwal, like many of his peers, may have been hailed as a visionary, but his arrogance could be his undoing.

As Indian startups continue to gain attention on the global stage, their founders must learn that sustainable success comes from listening to customers, addressing criticism, and focusing on long-term value creation—not just hype. If not, we could see more Indian unicorns stumbling in the years to come.