UK-based e-mobility company OX Delivers has inked a groundbreaking $163 million multi-year contract to launch its first franchise partner, OX East Africa, marking a pivotal step in its mission to transform transportation and trade in the Global South. This expansion will see the company’s innovative electric trucks and subscription-based services extending from Rwanda into neighboring countries including Uganda, Kenya, Tanzania, and Burundi.
The deal encompasses the delivery of OX’s purpose-built electric trucks, a subscription to its cutting-edge tech platform, and comprehensive vehicle maintenance services. This franchise model positions OX East Africa to meet the surging demand for efficient and affordable transport services while spearheading regional growth.
Strengthening Roots and Expanding Horizons
Simon Davis, co-founder and CEO of OX Delivers, hailed the agreement as a transformative milestone:
“This exciting agreement reflects the extraordinary traction our electric trucks and service operations have achieved in Rwanda. It enables us to accelerate our business model and deliver reliable transport-as-a-service, allowing our customers’ businesses to thrive.”
The company, which operates on a transport-as-a-service model, leverages its electric trucks designed specifically for the challenges of poor road infrastructure across Africa. OX trucks are reportedly ten times cheaper to operate than existing alternatives, making them a game-changer for traders and businesses in the region.
In 2023, OX Delivers achieved record-breaking performance, generating over $920,000 in revenue within ten months. Colin Tebbett, CEO of OX East Africa, emphasized the transformative impact of the service on local communities, stating:
“In Rwanda, OX Delivers has positively impacted the lives of 5,000 customers, with some seeing their sales multiply fivefold. This franchise strengthens our commitment to Rwanda and allows us to radically improve the lives of thousands more traders across East Africa.”
Supercharging Trade in the Global South
The franchise model aims to create a self-sustaining cycle of economic and social growth by improving access to affordable and reliable transport. OX Delivers’ trucks are tailor-made to tackle the unique logistical challenges of the Global South, where poor infrastructure has traditionally hindered trade.
In addition to expanding its reach, the company plans to introduce new technologies, including payment apps, to enhance customer experience and streamline operations.
Davis highlighted the broader mission, saying:
“The success we’ve seen in Rwanda underscores the potential for replicating this model in neighboring countries. Through this partnership, we aim to supercharge trade and drive growth across the Global South.”
