OX Delivers secures $163 million contract in East Africa

The multi-year deal includes the delivery of a fleet of OX Delivers' all-electric trucks along with a subscription to both its tech platform and vehicle maintenance services.

The 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.

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.

Colin Tebbett, CEO, OX East Africa 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.

“Our approach creates a crucial self-reinforcing cycle of economic and social growth within the local communities that OX Delivers operates in today and we have the ambition to expand this across the Global South in the future.”

OX Delivers is breaking down existing trade barriers and paving the way for economic transformation in the Global South.  OX Delivers is a complete transport and trade solution supported by purpose-built technology which provides entrepreneurs with the end-to-end infrastructure they need to trade reliably and prosperously across the Global South.

Using OX Delivers’ service, customers can transport their goods to market faster, safer and more efficiently, which means that their financial returns increase significantly. Previously, customers used to spend days transporting their goods to market via bus, bicycle and on foot each week. Today, using the OX Delivers service, they simply book the space they need on the truck and their goods are collected, and transported to market in just a few hours. A huge improvement in efficiency which means more sales and increased productivity.

Since the launch of its pilot operation in Rwanda in 2021, OX has seen strong demand and is now supporting more than 5000 customers, many of whom are smallholder farmers and traders, with 80% of orders coming from repeat customers.

This year, OX saw its strongest-ever performance since starting its pilot operation in Rwanda, generating more than $920,000 revenue in the ten-month period between January and October.

The OX truck is born out of a concept developed by Sir Torquil Norman and Professor Gordon Murray in 2016. Over the past four years, the OX engineering team has completely revolutionised the initial truck design to be purpose-built for the as-a-service model. The electric OX truck is 10 times less expensive to operate than existing alternatives and is set to transform transport services across the Global South. 

With the introduction of the next-generation truck and the first franchise partnership, OX Delivers will continue scaling its business across East Africa and beyond, targeting three billion people in the Global South without access to affordable, sustainable transport.