OX Delivers secures $1.5M grant for electric OX4 trucks rollout in Rwanda

OX Delivers, a UK-based transportation service company specialising in e-mobility, has recently secured a grant worth £1.2 million, or approximately $1.5 million, from Energy Catalyst, a programme under Innovate UK. This financial assistance is aimed at supporting the company in the introduction of all-electic trucks, named OX4, in the market of Rwanda as well as boosting its expansion efforts across the global South.

Production of the OX4 truck is scheduled to start by March 2024, with local markets also playing a vital role in the assembly process. A team consisting of 20 professionals across the fields of design, engineering, and production are finalising the last touches on the OX4 truck at OX Delivers’ UK headquarters.

In addition to this, the company has plans of extending its reach worldwide, particularly focusing on exploring markets in the southern hemisphere and starting with Africa.

Founded just in 2020, OX Delivers has its roots based in Leamington Spa, UK and is a transport service startup powered by technology. The company has a focus on providing on-demand transportation options in emerging markets, especially targeting businesses that lack access to motorised transportation. With a current customer base numbering at around 4000, OX Delivers has carved a niche for itself in a short time.

Customers opting for OX Delivers’ services essentially pay around $1 only for the space they need on the basis of kilogram-per-kilometre through the company’s proprietary application or a toll-free number.

The new grant funding from Energy Catalyst would be instrumental in enabling OX Delivers in delivering affordable transportation services to communities based in rural areas. As a part of this initiative, the company also plans to install a network of charging points for low-carbon energy, which it believes would serve to spread awareness about its numerous benefits.

Simon Davis, the CEO of OX Delivers, has stated that not just the funding but also the company’s transport-as-a-service model has been validated as a clean energy solution in the global South. Davis emphasises that their business model provides a sustainable and clean solution to traditional transportation, contributing to the growth and development of regions in the global South. The recent funding underscores the global importance and recognition of their innovative and environmentally-friendly model.

OX Delivers, the UK-based e-mobility transport service company, has conveyed that the launch of the all-electric OX4 truck will help to enhance its operational efficiency and aid in the electrification of its existing depots, numbered at two at present. In addition to this, the company has also initiated the use of a vehicle control unit which is quintessential in driving the development of advanced software for this new electric truck. The introduction of this cutting-edge software will not only streamline the company’s internal operations but will also ensure that the OX4 truck is equipped with the most advanced and effective technology on the market.

OX Delivers, the e-mobility transport service firm based in the UK, has managed to raise about $10 million from various investors, in addition to its recent grant from the Energy Catalyst funding program. Its funding sources are further diversified and include institutions like USAID and several initiatives backed by the UK government, namely, Innovate UK and the Advanced Propulsion Centre.

In 2022, the Advanced Propulsion Centre UK issued a grant to OX Delivers amounting to £8,500,000, or about $10,722,707. Similarly, in 2021, Innovate UK presented the organisation with a grant worth £800,000, or a little more than $1 million.

With regards to the existing electric vehicles market in Rwanda, OX Delivers contributes to it significantly with its locally produced electric vehicles, having registered approximately 900 of them in 2022. The firm is also facing competition from global manufacturers who are entering Rwanda’s electric vehicle market. For example, in 2019, Volkswagen launched its first-ever electric vehicle in Rwanda, marking its entry into Africa.

Nevertheless, OX Delivers is intent on penetrating the electric vehicle market in the global South, which encompasses regions in Africa. Revenue from electric vehicles in these regions is projected to hit $85.6 million by 2024. By 2028, the market volume is expected to rise to a substantial $162.2 million, further reflecting the immense potential that awaits OX Delivers in its expansion efforts.