Simple Energy reaching out to select customers to cancel their pre-bookings

The startup has sold no scooters since September 2023.

Published On Nov 23, 2023 07:32:00 PM

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Simple One price, range, bookings cancelled.

This story came to light when one of our readers shared with us that he had been contacted by Simple Energy to cancel his pre-booking. Since this came as a phone call, the customer was uncertain whether it was a scam, so he wrote an email to the company’s customer care helpline to confirm if this indeed was the case. This was the response he received from Simple Energy’s customer care email id:

“Our team is attempting to reach all our customers via telephone. Meanwhile, our intention is to create awareness among our customers about the recent fraudulent happening forging Simpleenergy Private Limited. This affects our brand value as customers believe these imposters and lose their hard-earned money. Hence, we are taking this step of initiating the refund to all our customers."

We reached out to Simple Energy for a statement and this is what the company shared with us:

“It has come to our attention that certain customers have received emails urging them to cancel their pre-bookings with Simple Energy. We understand the concern and wish to clarify the situation to alleviate any doubts or uncertainties. These emails were specifically sent to select customers residing in cities where fraudulent activities were detected, posing a potential risk to our company's reputation. This proactive measure was taken to safeguard our customers and offer them the option of a refund, should they wish to reconsider their pre-bookings.”

We are also given to understand that the customer care service is handled by an external agency and that this has led to some miscommunication. Simple tells us that this email has not been sent to all pre-booking customers, despite what was mentioned in the email.

Nevertheless, the rationale mentioned by Simple does leave some questions. For one, it does not explain why the customer who shared this email with us received it at all, as he had made his booking in August 2021, well before any fraudulent activities may have begun. Beyond that, it’s also strange to see any company asking its customers to take their money back as a safeguard against potential fraudulent activities – regardless of whether those customers have actually been a victim of said fraud.

It does come across that there is another possibility here; perhaps the company is looking to ease the load of back orders as it navigates through the journey of setting up and stabilising its production capabilities. This theory is reinforced by what is mentioned further down in Simple Energy customer care email sent to the customer:

“Once we have an experience center in your city, you will be the first priority customer as per the sequence of your pre-book to be reached for delivery of Simple One. In the meantime, please stay tuned to our social media platforms for more updates and also on our website.”

After all, Simple Energy’s sales numbers have trickled down to a halt in the last few months.

Back in May 2023, the company stated that deliveries would begin in June in Bengaluru, with other cities to follow soon. It also stated at that point that it had a target of setting up "140 to 150" showrooms in India over the next 8 to 10 months. However, as in the past, things haven’t gone as promised and, according to government registration data, Simple Energy has delivered less than 40 scooters to date.

To be precise, the company sold 10 scooters in June, 14 in July and 13 in August. Since then, the company has not delivered any scooters, as of November 23, 2023. We asked Simple about this as well and this is what we were told:

“Regarding zero deliveries, it's important to note that this was attributed to a comprehensive pilot program aimed at evaluating real-world scenarios and potential user-related challenges. Such assessments are a standard practice to ensure the utmost quality and customer satisfaction. We are pleased to inform you that following the successful conclusion of our assessment phase, Simple Energy is now positioned favourably. As a result, we are diligently planning to scale up our operations. Anticipate a significant surge in scooter deliveries by the end of November or early December, signifying our commitment to meeting your expectations.”

Have you made a pre-booking for a Simple Energy electric scooter and if so, have you received similar communication from the company? Do let us know if that is the case.