OX Delivers signs $163m electric truck contract
UK-based electric mobility pioneer OX Delivers has signed a major new agreement to meet demand for its vehicles in Africa.
The $163 million deal sees the firm behind the OX truck create its first franchise partner to take over its existing and expanding operations on the continent.
The mutli-year agreement means new franchise partner, OX East Africa, will satisfy growing demand for OX Delivers’ services in Rwanda and expand into four neighbouring countries, including Uganda, Kenya, Tanzania, and Burundi.
The new franchise deal includes the delivery of a fleet of OX Delivers electric trucks along with a subscription to its tech platform and vehicle maintenance services. It will also see UK operations scaling up to meet the demand from the growing African market.
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. He 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.”
OX Delivers offers a new solution for small-scale producers trying to get their goods to markets. Rather than transporting their produce themselves, customers book a space on one of the OX Delivers trucks, which then collects them and delivers them to their final destination.
The OX truck started out as a 2016 concept for an affordable ‘flat-pack’ vehicle that could be shipped around the world and assembled upon delivery. Since then, the initial design has been rethought and reengineered to act as a purpose-built electric vehicle for the as-a-service model.
