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UK E-Mobility Startup OX Delivers Announces $163 Million Multi-Year Agreement to Expand in East Africa
UK-based e-mobility startup OX Delivers has signed a $163 million deal to establish its first franchise partner in East Africa.
This strategic move aims to boost trade and provide sustainable transport solutions in the Global South.
The agreement includes the deployment of OX Delivers’ all-electric truck fleet, along with access to its proprietary technology platform and vehicle maintenance services.
The franchise partner, OX East Africa, will build on the company’s existing success in Rwanda and expand operations to neighboring countries, including Uganda, Kenya, Tanzania, and Burundi.
Simon Davis, Co-Founder and CEO of OX Delivers, highlighted the importance of the partnership in scaling their business.
“This deal represents a significant milestone for OX Delivers and acknowledges the remarkable progress we’ve achieved with our electric trucks and services in Rwanda. It will enable us to explore new markets, introduce payment apps, and enhance the overall customer experience.”
Davis emphasized the broader mission of fostering economic growth by providing affordable and reliable transport services that empower local businesses to thrive.
Colin Tebbett, the newly appointed CEO of OX East Africa, will lead the franchise’s operations.
Tebbett reflected on the success of OX Delivers in Rwanda, where the company has supported over 5,000 customers, many of whom are smallholder farmers and traders.
“Our service has allowed customers to increase their sales fivefold, demonstrating the transformative impact of efficient, reliable transport. The franchise will expand this model to neighboring countries, creating a self-reinforcing cycle of economic and social growth,” Tebbett said.
Since its pilot launch in Rwanda in 2021, OX Delivers has experienced robust demand, generating over $920,000 in revenue from January to October 2024.
Customers have transitioned from inefficient methods like bicycles and buses to the OX service, which allows them to book space on trucks for faster, safer delivery of goods to markets.
The OX electric truck, originally conceptualized by Sir Torquil Norman and Professor Gordon Murray, has been redesigned by OX’s engineering team for maximum efficiency and affordability.
With operating costs 10 times lower than traditional alternatives, the trucks are tailored for the “as-a-service” business model.
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