$163M deal to revolutionise trade and transport in East Africa
A pioneering e-mobility start-up has secured a $163m contract set to boost trade across East Africa.
Ox Delivers will create its first franchise partner in the region through its transport and trade solution, as it looks to target three billion people in the Global South without access to affordable, sustainable transport.
The Leamington Spa-headquartered business enables customers to transport their goods to market faster, safer and more efficiently. The new franchise partner, OX East Africa, will alleviate the growing demand for OX Delivers’ services in Rwanda and expand into four neighbouring countries, including Uganda, Kenya, Tanzania, and Burundi.
Instead of transporting goods to market via bus, bicycle and on foot each week, customers can book the space they need on the Ox Delivers truck and their goods are collected, and transported to market in just a few hours.
The multi-year deal includes the delivery of a fleet of OX Delivers’ all-electric trucks along with a subscription to both its tech platform and vehicle maintenance services.
After launching its pilot operation in Rwanda in 2021, OX is now supporting more than 5,000 customers, many of whom are smallholder farmers and traders, with 80% of orders coming from repeat customers.
The OX truck was born out of a concept developed by Sir Torquil Norman and Professor Gordon Murray in 2016. The electric OX truck is 10 times less expensive to operate than existing alternatives and is set to transform transport services across the Global South.
Simon Davis, Co-Founder and CEO of OX Delivers, said, “Today’s exciting agreement represents a significant milestone for the team at OX Delivers and is an acknowledgement of the extraordinary traction we have made both with our electric trucks and the service operation in Rwanda.
“This year has been record-breaking for OX Delivers and this deal enables us to significantly accelerate our business model and enhance our ability to deliver affordable, reliable transport-as-a-service to allow our customers’ businesses to prosper. In addition, this deal will allow us to explore new markets and introduce new technologies, such as payment apps, to improve our overall customer experience.
“The huge potential that our services have unlocked in Rwanda highlight the opportunity to replicate this in the neighbouring countries. Through this franchise partnership, we will expand into new markets and continue our mission to supercharge trade across the Global South.”
Colin Tebbett, who has led market expansion for OX Delivers since it was founded, will be CEO of the new franchise.
Colin Tebbett, CEO of OX East Africa commented: “Over the last three years, OX Delivers has made a significant positive impact on the lives of our 5,000 customers in Rwanda. Some of our customers have seen their sales increase by five times simply by using the OX Delivers service. This new franchise will allow us to strengthen our commitment to Rwanda as well as expand into neighbouring countries to radically transform the lives of thousands more traders.
“Our approach creates a crucial self-reinforcing cycle of economic and social growth within the local communities that OX Delivers operates in today and we have the ambition to expand this across the Global South in the future.”
