Since September 2023, the startup hasn’t sold a scooter
In recent weeks, we have released information that we obtained from some trusted sources regarding the sales and cancellations of the Simple Energy e-scooters. There is also some new information that is coming out concerning the same, which strengthens the previous information.
A customer of Simple Energy shared his experience with Autocar India, who had been contacted by Simple Energy to cancel his pre-booking. The customer was unsure whether this was a scam since it came as a telephone call. Therefore, he emailed the company’s customer service helpline to confirm whether or not this was true.
According to the email address that Simple Energy provided him for customer service, he received the following response, “all of our customers are being contacted by telephone by our team. As a result, we intend to raise customer awareness about the recent fraud happening involving Simple Energy Private Limited. The customer loses hard-earned money due to these imposters, affecting our brand value. In order to provide a refund to all customers, we have taken this step.”
In regards to this, Simple Energy has provided a statement to the media, stating that, “we have become aware that some customers have received emails encouraging them to cancel their pre-books with Simple Energy. For the sake of alleviating any doubts or uncertainties, we wish to clarify the situation. We sent these emails specifically to customers who reside in cities where fraudulent activities have been detected, which poses a potential risk to our company’s reputation. As part of our proactive approach, we have taken this proactive measure to safeguard our customers and to provide them with the option of a refund, should they wish to reconsider their pre-bookings.”
It is also noted that customer care is handled by an external agency, which has led to some miscommunications. Based on the information provided in the email, Simple indicates that this email has not been sent to all pre-booking customers.
Still, Simple’s reasoning leaves some questions. In addition, it doesn’t explain why the customer who sent this email to the media got it, since he booked in August 2021, well before any fraudulent activities started. Beyond that, it’s also weird to see a business ask its customers to take their money back as a safeguard against fraud – regardless of whether they’ve been ripped off.
Perhaps the company is looking to ease backorders during its journey of setting up and stabilizing its manufacturing capabilities. It does appear there is another possibility here. According to the email sent to the customer by Simple Energy customer care, once the company has an experience center in your city, you will be our first priority customer in order to receive Simple One. For more updates, please keep checking our social media platforms and website.”
In the last few months, Simple Energy’s sales numbers have dropped to a halt, and they have continued to do so for the time being.
In May 2023, the company stated that deliveries would begin in Bengaluru in June and other cities would follow soon thereafter. Moreover, it stated at that time that it had a goal of opening “140 to 150” showrooms within the next eight to ten months in India. To date, Simple Energy has delivered less than 40 scooters, according to government registration data, as in the past.
A total of 10 scooters were sold in June, 14 in July, and 13 in August by the company. According to the company’s records, no scooters have been delivered since November 23, 2023. In response to these statements, Simple provided the following response: “The zero deliveries were achieved through an in-depth pilot program that was designed to evaluate real-world scenarios as well as potential user-related challenges. An assessment of this type is a standard practice in order to ensure the highest level of quality and customer satisfaction. After completing our assessment phase, Simple Energy is now positioned favorably following the completion of our assessment phase. Our operations will therefore be scaled up diligently in the coming months. Our commitment to meeting your expectations will be evident by the end of November or early December, as a result of a substantial increase in scooter deliveries.”
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