AFRICA – OX Delivers, a UK-based transportation service company specializing in e-mobility, has secured a grant worth £1.2 million (US$1.5m), from Energy Catalyst, a program under Innovate UK.
This financial assistance is aimed at supporting the company in the introduction of all-electric 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 finalizing 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 motorized transportation. With a current customer base numbering around 4000, OX Delivers has carved a niche for itself in a short time.
The new grant funding from Energy Catalyst would be instrumental in enabling OX Delivers to deliver 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 emphasizes 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.
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. In 2019, Volkswagen launched its first-ever electric vehicle in Rwanda. 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 US$85.6 million by 2024.
By 2028, the market volume is expected to rise to a substantial US$162.2 million, further reflecting the immense potential that awaits OX Delivers in its expansion efforts.
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