OX Delivers, a UK e-mobility start-up, has secured a $163 million contract to establish its first franchise in East Africa, aimed at boosting trade across the region, the company announced recently. The long-term deal will involve the delivery of a fleet of OX’s all-electric trucks, along with access to its technology platform and vehicle maintenance services. OX East Africa, the new franchise partner, will reportedly cater to growing demand in Rwanda and expand into Uganda, Kenya, Tanzania, and Burundi, providing sustainable, and affordable transport solutions for smallholder farmers and traders. ALSO READ: Rwandan e-mobility firm secures Rwf300m to expand fleet Simon Davis, the Co-Founder and CEO of OX Delivers, stated that the agreement represents a major step forward for OX Delivers, validating the traction they have gained in Rwanda. “It will allow us to scale and deliver reliable transport services to local businesses, accelerating economic growth across East Africa,” he said. Since launching in Rwanda in 2021, OX Delivers says it has helped over 5,000 customers, including farmers and traders, transport goods more efficiently. The introduction of electric trucks, which the company says are 10 times cheaper to operate than conventional alternatives, has reduced transportation costs and increased productivity. ALSO READ: Call for more e-charging stations to deepen adoption of EVs According to the firm, the franchise deal will also integrate new technologies, including payment apps, to enhance the customer experience. “This partnership allows us to expand into new markets and integrate innovative solutions that will improve our customers’ ability to trade and grow their businesses,” Davis added. Colin Tebbett, who has led OX Delivers’ market expansion since its inception, will serve as CEO of OX East Africa. He highlighted that customers who have worked with OX have seen sales increase up to five times. Tebbett indicated that the new franchise would strengthen local businesses and extend into neighboring countries, transforming regional trade networks. ALSO READ: E-mobility investors welcome extended tax exemption on EVs By reducing the time to transport goods to market, OX enables its customers to increase sales and productivity. Its service has been crucial in providing faster, safer, and more efficient transport compared to traditional methods like bus, bicycle, and foot. In 2023, OX Delivers generated over $920,000 in revenue in the first ten months, with 80% of orders from repeat customers, reflecting the growing demand for its services in Rwanda. The OX truck, developed by Torquil Norman and Gordon Murray in 2016, has undergone engineering upgrades to suit the needs of the Global South.
