Grace Ashiru
OX Delivers, a UK-based e mobility startup, has been awarded a funding grant of £1.2 million by Energy Catalyst to support the company as it prepares to launch its innovative, cost-effective all-electric OX4 truck.
This financial boost from the Energy Catalyst grant is designated for the creation of a sustainable energy ecosystem in Rwanda, which will serve as a base for the operation of OX Delivers’ electric vehicle (EV) trucks.
Currently, OX Delivers is making a significant impact in Rwanda by providing dependable, economical transport-as-a-service, improving the lives of thousands. The firm is committed to extending its transport-as-a-service solutions throughout the Global South, beginning with the African continent.
With OX Delivers, transporting a sack of goods to market across the challenging roads commonly found in the Global South costs less than $1. This transport-as-a-service model efficiently and sustainably shortens a journey that could take days by foot or bicycle to just a few hours. It opens up access for farmers and traders to distant markets, where they can fetch better prices and discover new opportunities. This approach fosters a cycle of economic and social development within local communities throughout the Global South.
Energy Catalyst, a program by Innovate UK, supports vital innovations that aim to generate employment, foster economic development, and facilitate a fair transition to clean energy in Africa, Asia, and the Indo-Pacific regions.
Simon Davis, Founder & CEO of OX Delivers, expressed his enthusiasm, stating, “It’s a great honor to not only be a recipient of Energy Catalyst’s funding but also to have our transport-as-a-service model recognized as a key component in achieving clean energy, promoting economic advancement, and improving lives in the Global South.”
He further added, “This grant will be utilized to showcase the advantages of a sustainable energy ‘charge-point’ infrastructure and to offer rural areas access to cost-effective transportation. It will aid in the electrification of two existing depots, turning them into showcase projects that will enhance the business proposition of OX Delivers.”
OX Delivers offers a revolutionary transport-as-a-service model, where customers are charged solely based on the weight and distance of their cargo. This service is conveniently accessible through either an app or a toll-free call. Since its introduction, OX has rapidly gained popularity, now servicing over 4,000 clients including smallholder farmers and traders, with an impressive 80% of these orders being from returning customers.
The first of its kind, the OX Truck was created by Professor Gordon Murray in 2016 as the world’s initial flat-pack vehicle and the first vehicle in four decades to be specifically designed for Africa. The OX team has made significant strides in the development of the truck, transforming it into the first electric truck engineered expressly for the Global South. This innovation offers a running cost that is ten times lower than existing options, poised to revolutionize transportation across the continent.
OX Delivers is set to commence the construction of its third-generation OX4 truck in March. “Drawing from field experiences and customer insights, the OX4 represents our most sophisticated model yet, boasting significant enhancements,” stated Davis.
The OX4 introduces design enhancements that include a better driving position and increased visibility for the operator, alongside chassis advancements. OX Delivers has also innovated a unique vehicle control unit, which facilitates the development of advanced software aimed at optimizing the electric powertrain’s efficiency. Comprehensive technical specifications of the OX4 will be shared in the future.
A dedicated team of 20 professionals in design, engineering, and production is putting the finishing touches on the OX4 truck plans at the OX Delivers global headquarters in Leamington Spa, UK. The initial units’ construction is scheduled to begin in March, with the trucks being delivered in a knock-down kit form for local market assembly.
OX Delivers has obtained financial support not only from the Energy Catalyst fund but also through awards from the UK government and USAID, via initiatives like the Advanced Propulsion Centre and Innovate UK. Beyond these grants, the company has attracted a group of angel investors who have together contributed approximately $10 million in equity investment.
With plans to launch the OX4 truck within the year, OX Delivers aims to expand its influence throughout East Africa and further, aiming to reach the three billion individuals in developing nations who lack access to affordable and sustainable transportation options.
