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Ola CEO-Kunal Kamra spat: How effective PR could have saved the day

In the aftermath of the social media feud, a cumulative decline of approximately 46% was seen in Ola Electric’s shares from the peak price of Rs 157.4 shortly after its listing in August 2024.

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Ruchika Jha
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Ola Crisis

On October 6, 2024, a social media feud unfolded on short messaging platform X between Ola CEO Bhavish Aggarwal and comedian Kunal Kamra regarding the quality of EV maker’s service. This exchange sparked a public discourse, highlighting the importance of effective crisis communication in today's digital age.

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Without getting into the merits of arguments presented by the duo, it is evident that instead of a prompt and measured response to Kamra’s criticism, Aggarwal relied on a combative approach by telling the comedian to either “help” the company or stay quiet, and mocking him by referring to his career as “failed.” The OLA CEO’s remarks drew widespread criticism, raising questions about how leaders should engage with their critics online.

Compare this situation to the public's criticism of Zomato's founder Deepinder Goyal for introducing "Veg-Fleet" and assigning green uniforms to those delivery executives. He quickly understood what consumers wanted and reversed the decision to differentiate delivery partners based on uniforms.

Another case in point is when Goyal posed as a delivery executive and went to a mall to deliver food. As soon as he entered the mall, he noticed that the delivery executives lacked a comfortable place to wait for their orders, a situation he promptly rectified.

Goyal’s responses in both incidents offer an important lesson in how business leaders should manage public relations during moments of scrutiny and criticism. Aggarwal’s defensive and confrontational response not only intensified the controversy but also shifted the narrative from customers’ concerns to the CEO’s behaviour.

In addition to public criticism, OLA Electric is currently facing government action due to numerous customer complaints about service issues with the company, as reported by Business Today.

The Central Consumer Protection Authority (CCPA) has issued a showcause notice to the company after looking into the complaints. The notice, dated October 3, states that Ola Electric seems to have broken several rules under the Consumer Protection Act, 2019. The company has to respond to the notice in 15 days. Following the CCPA's action, shares of Ola Electric fell 6% to their day's low of Rs 85.21 on the BSE.

Amidst all this commotion, communication experts believe that Aggarwal definitely should have used a more constructive and professional response to address the concern.

Bhaskar Majumdar, co-originator, CommsAdda, shares that social media requires careful consideration when engaging with anyone, especially someone like Kunal Kamra, who has a significant following.

Bhaskar Majumdar
Bhaskar Majumdar, co-originator, CommsAdda

He suggests expressing appreciation for his feedback would demonstrate that the company values customer input. Next, providing a brief explanation of the factors contributing to the delays and service issues without making excuses would help customers understand the context.

“By taking these steps, Bhavish could have turned a challenging situation into an opportunity to reinforce customer trust and loyalty. Avoid saying anything online that you wouldn’t want to see on a billboard with your face on it,” he suggests.

Nidhi Sabbarwal, the director of PRtainment Media and Communications, adds that in order to maintain professionalism and elevate the entire situation, Aggarwal should have provided details about the steps Ola Electric is taking to address the issues, demonstrating a commitment to improvement.

Nidhi Sabbarwal
Nidhi Sabbarwal, director, PRtainment Media and Communications

Transparently acknowledging the situation and outlining the steps taken to address the issues demonstrates accountability and a commitment to engaging with stakeholders.

Sabbarwal adds that the primary focus should be to take purely customer-centric actions. “Showcasing proactive measures like extended warranties and free service checkups for existing customers can help restore credibility for Ola Electric. Instead of focussing on the external negativities, they should fix 'what went wrong'.”

In today's rapidly growing digital age, social media has become a crucial place for brands and consumer engagement. These public interactions can be tricky for CEOs and other senior leaders, as they often have to address criticism in real time.

This presents a unique challenge—to strike the right balance between the two while maintaining professionalism in public forums.

Madhukar Kumar, founder and chief strategist, Grey Cell Public Relations, points that the first step is always owning up to the issue and addressing it head-on.

MADHUKAR KUMAR
Madhukar Kumar, founder and chief strategist, Grey Cell Public Relations

He adds that Ola should put out a re-assurance public message, not just a statement, but something more personalised—maybe a video message from Bhavish himself acknowledging where the company fell short and detailing the steps it is taking to fix things.

"They can also launch a quick improvement campaign, showing concrete changes: faster customer response times, real-time updates for customers, and better quality assurance. Alongside, share regular updates with investors and stakeholders on these initiatives. It’s crucial to back this with hard data and show they’re not just making promises, but actually taking action," says Kumar.

Majumdar says that using a respectful and professional tone in all interactions is crucial.

“It’s also important to recognise when to take discussions offline or move them to more private channels. Not every issue requires a public response, and sometimes a direct approach is more effective. Most importantly, setting clear internal guidelines for social media engagement ensures that all communications align with the company’s values and messaging,” he adds.

Himanshu Arora, co-founder of Social Panga, emphasises the importance of establishing positive initiatives for customer service and effective communication over the next few months. He also emphasises focussing on products and services, avoiding direct end communications, and providing end results to customers.

Himanshu Arora, Co-Founder, Social Panga
Himanshu Arora, co-founder, Social Panga

"Adopting a defensive stance and claiming to be working toward a larger business challenge or motive will not be beneficial. Customers are paying for services and products, and the right way to acknowledge a mistake is to accept it. Ola can also work on sharing timely updates with customers. This will be a crucial strategy for damage control, and within 3-6 months, the situation will be under control," he clarifies.

Majumdar says that both Zomato and Ola cases illustrate that a well-thought-out communication strategy is crucial. Leaders must strike a balance between addressing concerns and maintaining professionalism while conveying a positive narrative for the company.

Adding to what Majumdar said, Sabbarwal explains, “The primary lesson that we can get from situations like these is to always acknowledge customers first and sincerely work on mitigating backlash.” 

Ola Bhavish Aggarwal Ola Electric Kunal Kamra
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