UK e-mobility startup OX Delivers has secured a $163 million contract to create its first franchise partner in East Africa as part of its strategic vision to supercharge trade across the Global South. The multi-year deal includes the delivery of a fleet of the company’s all-electric trucks along with a subscription to its tech platform and vehicle maintenance services.

“Today’s exciting agreement represents a significant milestone for the team at OX Delivers and is an acknowledgment of the extraordinary traction we have made both with our electric trucks and the service operation in Rwanda,” said Simon Davis, Co-Founder and CEO of OX Delivers. “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 new franchise partner OX East Africa will satisfy the growing demand for its services in Rwanda and expand into four neighboring countries: Uganda, Kenya, Tanzania, and Burundi.

“The huge potential that our services have unlocked in Rwanda highlights the opportunity to replicate this in the neighboring countries,” added Davis. “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 the CEO of the new franchise.

“Over the last three years, OX Delivers has made a significant positive impact on the lives of our 5000 customers in Rwanda,” said Tebbett. “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 neighboring countries to radically transform the lives of thousands more traders.

OX Delivers is breaking down existing trade barriers and paving the way for economic transformation in the Global South with a transport and trade solution supported by purpose-built technology that provides entrepreneurs with the end-to-end infrastructure they need to trade reliably and prosperously. Using the company’s service, customers can transport their goods to market faster, safer, and more efficiently, which means that their financial returns increase significantly.

“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,” added Tebbett.

Previously, customers used to spend days transporting their goods to market via bus, bicycle, and on foot each week. Now they 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 that means more sales and increased productivity.

Since the 2021 launch of its pilot operation in Rwanda, OX Delivers 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, the company saw its strongest-ever performance since starting its Rwanda pilot, generating more than $920,000 in revenue in the ten months between January and October.

According to the company, slow, expensive transport hinders trade, with developing countries facing domestic trading costs that are up to 14 times higher than in the U.S. Its trucks were made to unlock trade and create wealth for everyone involved using a truck-as-a-service model.

The company’s truck is rooted in a concept developed by Torquil Norman and Gordon Murray in 2016. Over the past four years, its engineering team has completely redesigned the initial truck design to be purpose-built for the as-a-service model. The electric truck is said to be 10 times less expensive to operate than existing alternatives and is set to transform transport services across the Global South. The CKD (completely knocked down) vehicle has all-terrain capability and features a modular design for circularity.

The team’s next-generation electric truck has a payload of more than 2000 kg, a range of more than 150 km from its 74-kW·h battery, and a 10-year lifespan. It features design updates including improved driving position, greater operator visibility, and significant chassis improvements. It has also developed a proprietary vehicle control unit enabling the creation of advanced software for more efficient electric-powertrain control.

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.