Ola Electric’s scooter deliveries hit as it renegotiates contracts with vehicle registration agencies to cut costs

Subscribe to enjoy similar stories. Ola Electric Mobility Ltd’s decision to renegotiate contracts with two of India’s largest vehicle registration agencies last month has resulted in prolonged delays in the deliveries of its scooters, according to store managers and complaints posted by buyers on social media. The waiting period for the company’s electric scooters increased to 20-45 days from 5-7 days before February, managers at seven Ola Electric stores across New Delhi, Mumbai and Bengaluru told Mint.

However, Ola Electric said delivery times had improved, with the delivery time for customers now reduced from 12 days to 3-4 days, according to a company filing with the stock exchanges on Wednesday. Two senior executives at one of the registration agencies told Mint on condition of anonymity that Ola Electric wanted a drastic reduction in the cost of registering vehicles. "The company came to us one day last month and said they want to drastically cut the cost at which we were doing registrations.

When we disagreed with the price they quoted, they stopped our work immediately," one executive said. According to the second executive, the price quoted by Bengaluru-based Ola Electric was one-third of what the company was charged previously. Registration agencies streamline and quicken the process of vehicle registration in different states.

As per the agency executives, the contentious issue with Ola Electric was the pricing of staffers required to enter registration data into Vahan, the transport department’s website. The registration agencies are responsible for entering all the data entry as per local laws to generate vehicle numbers and deliver the number plates. “The company did not have a problem with the cost of