2024 Global Climate Challenge
Scaling Sustainable Transport in Africa: Electrifying Smallholder Farmers' Access to Markets
What is the name of your solution?
Scaling Sustainable Transport in Africa: Electrifying Smallholder Farmers' Access to Markets
Provide a one-line summary of your solution.
Transforming Africa's goods transportation with sustainable, shared, electric delivery trucks designed for the needs of smallholder farmers.
In what city, town, or region is your solution team headquartered?
Leamington Spa, UKIn what country is your solution team headquartered?
What type of organization is your solution team?
For-profit, including B-Corp or similar models
Film your elevator pitch.
What specific problem are you solving?
In Africa, about 450M people (over 70% of the total rural population) are estimated to still be unconnected to transport infrastructure and systems. High transport costs add 75% to the price of African goods, and outdated transport infrastructure restricts market access for large and small-scale food system producers. Contributing factors include bad roads; expensive, old, highly-polluting, unreliable diesel trucks; and inefficient logistics chains across food systems. Together they contribute to global greenhouse gas emissions and impede economic growth across food systems.
Our first operations are in Rwanda, where we run integrated hubs hosting our DriversPlus, charging infrastructure, and warehousing within rural communities. On a macro level there are just over 7,000 trucks in the country, more than half of which are over nine years old. Most run on diesel, increasing Rwanda's carbon footprint and require massive maintenance that lead to inefficiencies for primarily informal operators. Our own Rwanda Chief Mechanic published a study: only 41% of vehicles passed the Rwanda emission tests and almost all diesel vehicles tested failed the UK emission test. Transport is a key food loss hotspot: accounting for up to half of 18-49% food losses across three indicative value chains. 19% of Rwandan households remain food insecure today, with most of them located in the western and northern parts of the country – exactly where our operations are based.
Informal good transport has caused problems for the 45% of our current customers who are women. Anecdotally, “I no longer spend a long time on the road waiting for a car. Currently, I reach home earlier and as a result, I get time to take care of my family” is one such quote; others have faced theft and harassment while having to wait overnight with goods at the side of the road.
In summary, the lack of affordable and accessible transport infrastructure remains a critical challenge for rural populations in Africa, impacting economic opportunities, food systems, health, and overall development.
What is your solution?
We unlock producers' access to markets and enable them to reach net zero through shared, electric truck transportation. We provide the logistics of business: transport, payments, working capital, paperwork, and finding buyers and sellers.
We run owned electric delivery trucks from OX hubs. The OX trucks are electric vehicles (EVs) specifically engineered to navigate the challenging terrains prevalent in Africa. They have a 2-tonne carrying capacity for 170km per charge, and can be fast charged at the hubs in under 3 hours. The OX truck boasts an extended useful life 20+ years, addressing both economic and environmental sustainability. The truck's design prioritizes durability, incorporating easily replaceable parts to ensure a long service life and minimize maintenance costs. Achieving low Total Cost of Ownership (TCO), the finance and operating cost is brought down to USD 0.18/km for an OX truck, vs USD 0.39/km for a typical diesel truck (53% saving). This directly enables affordable transport pricing: we charge USD 0.0004/kg-km (e.g., 100kg sack transported for 10km [1,000kg-km] is priced at USD 0.4) which is the same price as a bicycle goods carrier charges. The OX truck however carries more and goes further: unlocking access to better markets and driving reliability metrics for our producer-customers higher.
Hubs respond to and source shared orders for the truck. By providing shared logistics services via a Transport-as-a-Service (TaaS) model, we:
broaden market access for small-scale farmers by removing the need to collate a full 2-tonne load
and for all producers by providing links through first-mile pickup/delivery, warehousing, and long-haul connections to more lucrative markets (e.g., provincial, capital, and cross border)
cut carbon emissions substantially: 375 tCO2e saving per-truck across a 20-year truck lifetime (using Rwanda grid emissions)
reduce operational costs for local business owners: 52% of current customers improve their incomes
Our unique TaaS business model is particularly beneficial for small-holder farmers, a demographic that has historically been underserved in the logistics sector due to prohibitive costs associated with vehicle ownership and stringent credit requirements for leasing. By adopting a pay-per-use system, where clients are charged based on the weight of their cargo and the distance travelled, we ensure affordability and accessibility for both large enterprises and small businesses. This pricing strategy democratizes access to logistic services, enabling farmers and entrepreneurs to expand their market reach without the burden of significant upfront investments.
Streamlining the process of booking and providing transportation services, we offer a toll-free number connecting to a local hub, removing the need for our small-holder customers to use their phone credit. We are also developing a user-friendly USSD order flow for customers without smartphones (the majority). Over 90% of our revenue is collected instantly by mobile money and reconciled through our digital platform governing dispatch, stock, jobs, drivers, truck status/location, and accounts.
Hub operations are best explained by our colleagues: [https://www.youtube.com/watch?v=qrUGj6b4qhg]. They deliver our comprehensive solution to a massive problem, and contribute to the global climate initiative while reducing the carbon footprint of the logistics sector.
Who does your solution serve, and in what ways will the solution impact their lives?
The target population for OX Delivers encompasses smallholder farmers and local entrepreneurs within Rwanda initially and later the broader Global South.
In 2022 Rwanda had 7,202 trucks serving a population of 13.2 million people. This is 1 truck for every 1,832 people in Rwanda, while the ratio in Kenya is 1:292. Even with Kenya’s 6x more availability, producers in both countries are underserved by motorised transport, especially in the rural areas. Supply barriers to provision include the prohibitive cost of vehicle ownership and stringent credit requirements for vehicle leasing. Where credit is available, banks demand outsized equity participation and only offer 5 year loan tenors for a 10 year vehicle life (when diesel). The lack of affordable and reliable transportation solutions significantly hinders ability to access markets, constraining economic growth and sustainability.
Our smallholder farmer customers form the backbone of the agricultural sector in Rwanda and similar economies. Their challenges in transporting produce lead to avoidable post-harvest losses, decreased profitability, and limits scope for scaling their operations. Local entrepreneurs similarly struggle to expand their businesses due to logistical challenges that restrict their market access and ability to source materials and inputs cost-effectively and reliably.
OX Delivers directly solves these challenges in two ways.
Firstly, the OX truck is specifically designed for the rugged terrains and logistical needs of the Global South: offering a durable, efficient, and environmentally sustainable mode of transport. The truck's design, emphasizing durability and low maintenance, ensures a useful life of up to 20 years, making it an ideal asset for the demanding conditions of rural and semi-urban logistics. Through the EV powertrain and extended lifetime, and our rural focus driving significant positive impact, we have been able to source concessionary finance for fleet expansion: solving for credit problems.
Secondly, the Transport-as-a-Service business model revolutionizes how logistics services are accessed by the target population. By removing the need for large upfront investments in vehicle ownership and circumventing the challenges of credit access, OX Delivers enables smallholder farmers and entrepreneurs to pay only for the logistics services they use, based on the weight of goods and the distance transported. This pay-per-use system significantly lowers the barrier to entry for utilizing logistics, making it more accessible and affordable for small-scale producers and businesses. The fixed price per KG-KM ensures transparency and predictability in logistics costs: crucial for budgeting and planning in small-scale operations. This model enables OX to understand customer pain points, with an example innovation being our support in producing tax receipts – bringing producers into the formal economy.
Furthermore, the OX mobile application simplifies the process of accessing transport services, allowing easy booking of pick-ups and deliveries. This digital interface, soon complemented by a USSD code for those without smartphone access, ensures that the solution is broadly accessible, catering to the diverse technological landscapes of our target populations and bridging the digital divide.
In essence, OX Delivers tackles the core issues of affordability, accessibility, and sustainability in rural logistics value chains.
How are you and your team well-positioned to deliver this solution?
OX Delivers is deeply committed to serving our communities by maintaining a strong local presence and ensuring our services are closely aligned with the needs of those we serve.
Our distributed hub model places OX strategically near our customers, enhancing our ability to provide timely and relevant logistics solutions. Our drivers, known as 'DriversPlus,' go beyond their transport roles to engage in business development, fostering relationships within the community to better understand and address customer challenges. This approach ensures our services are not just transactions but partnerships, particularly with smallholder farmers new to formal logistics services.
Leadership of the OX Rwanda team underscores our commitment to community-centric service, leveraging local knowledge and networks to drive our operations effectively. We have a 50:50 gender balance target within OX Rwanda and have managed 60:40 male:female to date, with new hubs prioritising female DriverPlus recruitment from pools of talent we support with commercial driving licenses and training.
OX Rwanda is led by Managing Director Francine Uwamahoro, previously MD at EarthEnable. Francine’s own farming and entrepreneurial background lends great insights into customer needs. Francine is supported by a Central Team comprising Aline, responsible for developing the team, with a particular focus on recruiting women for the gender-balanced depot-based DriverPlus roles; Ferdinand, who trains the team in customer relationships and leadership; Innocent, our Chief Mechanic who is safety trained through OX in the UK for high voltage work; an Accounts team, practiced Design expert, and our Digital Product Owner who designs the apps and portals completely in Rwanda. The Central Team supports a total Rwanda team of 80+ employees.
At the OX Global level, we have pulled together vehicle design talent that delivers the OX truck (now on Gen 3). Our Co-Founder and MD is Simon Davis, with more than 20 years extensive experience in the automotive industry including engineering, strategy, programme management and planning, digital development and internal consulting roles primarily at Jaguar Land Rover. Co-Founder Natalie Dowsett is an automotive specialist with 15 years' experience in strategy and communication based roles, including over ten years at Jaguar Land Rover. She has previously founded her own start-up and is Trustee of a Warwickshire, UK-based mental health charity. The OX Global team comprises 20+ employees.
Which dimension of the Challenge does your solution most closely address?
Enable a low-carbon and nutritious global food system, across large and small-scale producers plus supply chains that reduce food loss.Which of the UN Sustainable Development Goals does your solution address?
What is your solution’s stage of development?
GrowthWhy are you applying to Solve?
Two main reasons:
1, Awareness and recognition within the global innovation community. We succeed in Rwanda because of the broader ecosystem of e-mobility companies that are predominantly focused on serving urban people transport. Their efforts in government and stakeholder relations paved the way for OX to act in the rural goods transport context. Now OX is ready to play a bigger role regionally and internationally, and Solve’s connections and partnerships will enable this growth. We’re ready to become a major partner in connecting farmers with innovative products.
2, Investment opportunities. Solve’s transparent and open process levels the playing field for innovators. Winning can attract funders and investors who are interested in supporting impactful solutions. Our trucks require funding and repay their lenders with monthly cash flow. The quantum of this finance gap grows with more trucks, even while the payback shrinks with truck Bill of Material/Process cost savings and operational improvements
In which of the following areas do you most need partners or support?
Who is the Team Lead for your solution?
Simon Davis
What makes your solution innovative?
OX Delivers introduces an innovative approach to tackling logistics challenges in the Global South, with a distinct focus on sustainability, affordability, and accessibility. The core of our innovation lies in three key areas:
The OX EV Truck: Purposefully designed for the challenging terrains of the Global South, the OX EV truck represents a significant leap in sustainable transportation. Its electric powertrain not only reduces carbon emissions but also lowers operational costs compared to traditional diesel trucks. The vehicle's durability, coupled with a design that ensures a useful life of up to 20 years, sets a new standard for vehicle longevity and environmental stewardship in logistics.
Business Model: Our pay-as-you-go model disrupts traditional logistics by removing the barrier of high upfront vehicle costs or stringent leasing agreements. Customers pay only for the weight of the goods transported and the distance covered. This model democratizes access to logistics services, enabling small-holder farmers and local entrepreneurs to affordably reach wider markets. By directly addressing the financial constraints of our target demographic, we're not just offering a service; we're enabling economic empowerment and growth.
Mobile-Enabled Solution: The integration of a mobile app and USSD service for accessing our logistics platform breaks down technological barriers, making our service accessible to a broad range of customers. This digital approach allows for easy scheduling of pickups and deliveries, catering to both tech-savvy users and those with more basic phone capabilities. It's a nod towards inclusivity, ensuring that the benefits of our service reach as many people as possible, regardless of their access to technology.
Collectively, these innovations position OX Delivers as a catalyst for change in the logistics sector. By showcasing the viability of electric vehicles in challenging environments and proving the potential of a pay-per-use business model, we're setting new benchmarks for sustainability and affordability in transportation. Our approach encourages others in the industry to rethink how logistics services can be delivered, promoting a shift towards more sustainable and equitable solutions. As we scale, the broader impact of our innovations could significantly change the market landscape, encouraging more widespread adoption of electric vehicles, transforming business models to be more inclusive, and leveraging technology to bridge the gap between services and those who need them most. This systemic change has the potential to reduce the logistics sector's carbon footprint, improve market access for underserved communities, and stimulate economic growth in some of the world's most vulnerable regions.
Describe in simple terms how and why you expect your solution to have an impact on the problem.
The OX Goal: To empower rural communities in developing countries by improving access to affordable and efficient transportation, leading to increased economic opportunities and improved livelihoods.
Current OX Activities:
Deploy OX Electric Trucks: Establish a network of electric trucks specifically designed for rural roads.
Develop Solar Microgrid Infrastructure: Implement solar-powered charging stations to support the electric trucks.
Create a User-Friendly Digital Platform: Design a mobile app for customers to book deliveries, manage payments, and track shipments.
Implement "Pay-As-You-Go" Fee Structure: Eliminate the need for upfront investment in vehicles, making transport services accessible to all.
Outputs of these activities:
Increased Availability of Affordable Transport: Provide reliable and cost-effective transportation options for small businesses and farmers.
Improved Efficiency of Goods Transportation: Enhance logistics with faster delivery times and minimized product spoilage.
Greater Market Access: Facilitate the delivery of goods to more distant markets, expanding customer reach.
Financial Inclusion: Offer digital payment solutions within the platform for convenient transactions.
Longer term outcomes:
Increased Sales and Revenue: Farmers and businesses can sell larger quantities of goods at potentially higher prices, leading to financial growth. (We are seeing initial success in this outcome, as demonstrated by a recent impact report by 60 Decibels)
Reduced Food Waste: Efficient delivery minimizes spoilage and ensures fresh produce reaches consumers.
Increased Time for Productive Activities: With reliable transportation secured, people can devote more time to income-generating activities or education.
Empowerment of Women and Marginalized Groups: The "pay-as-you-go" model eliminates financial barriers, allowing more diverse participation in the market. (Supported by 60 Decibels report: 17% increase in new transport users)
Improved Livelihoods: Increased income, reduced food waste, and time savings contribute to overall well-being and community development. (Supported by 60 Decibels report: 37% reported improved livelihoods)
Overall, OX Delivers' theory of change demonstrates a clear path towards achieving our goal of empowering rural communities. By addressing the transportation barrier, we unlock a cascade of positive outcomes, leading to improved livelihoods and a more prosperous future for all.
What are your impact goals for your solution and how are you measuring your progress towards them?
OX Delivers is deeply committed to creating a transformational impact on both the environment and the livelihoods of our target populations, including small-holder farmers and local entrepreneurs in the Global South. Below are our impact goals:
Reducing Transportation Costs: We aim to significantly lower the financial barriers associated with accessing logistics services. By tracking the average cost savings per customer, we can quantify the economic benefit delivered to our users, enabling them to reinvest savings into their businesses and communities.
Increasing Market Access: Enhancing the reach of small-holder farmers and entrepreneurs to broader markets is fundamental. We monitor the increase in market access through the volume of goods transported and the geographical expansion of our service offerings. This enables accessing new markets penetrated by our customers as a direct result of our logistics solutions.
Decreasing Carbon Emissions: Addressing the environmental impact of transportation within the logistics sector is a key goal. We measure our progress in this area by calculating the total reduction in carbon emissions achieved through the use of our electric OX trucks compared to traditional diesel trucks. This contributes to global efforts in combating climate change.
Reducing Food Waste: By tackling logistical inefficiencies, we aim to minimize post-harvest losses, a significant issue for small-holder farmers. We assess the impact on reducing food waste by measuring the reduction in post-harvest losses together with our customers, contributing to greater food security and sustainability in agricultural practices.
Customer Satisfaction and Service Area Expansion: Ensuring high levels of customer satisfaction and expanding our service areas are also among our priorities. Feedback and satisfaction surveys, alongside the number of new areas served, help us understand our service's effectiveness and areas for improvement.
In tracking these indicators, we employ a mix of quantitative data analysis and qualitative feedback mechanisms. This includes leveraging third-party research, conducting impact evaluations, and gathering data from interviews with our target population. Such comprehensive monitoring allows us to adjust our strategies as needed, ensuring we are on track to achieve our ambitious impact goals.
Describe the core technology that powers your solution.
The core technology of OX Delivers comprises two main components: the OX truck and the mobile application.
The OX Truck: This electric vehicle is purposefully designed for the demanding terrains of the Global South. Its robustness, combined with electric propulsion, offers an eco-friendly alternative to diesel trucks. It is engineered for durability, ease of maintenance, and efficient operation, supporting up to 20 years of service life. The OX truck's design emphasizes simplicity, cost-effectiveness, and adaptability to various transportation needs, setting a new standard in vehicle technology for logistics.
The Mobile Application: Our app is a critical interface for customers, facilitating easy access to our transport services. It allows users to schedule pickups and deliveries, track shipments, and manage payments. For those without access to smart devices, a USSD code ensures inclusivity. The app integrates seamlessly with our logistics operations, providing real-time data that enhances service delivery and customer experience. Together, these technologies form the backbone of our innovative logistics solution, aiming to revolutionize transportation in underserved markets.
Which of the following categories best describes your solution?
A new business model or process that relies on technology to be successful
Please select the technologies currently used in your solution:
If your solution has a website or an app, provide the links here:
https://www.oxdelivers.com/
In which countries do you currently operate?
How many people work on your solution team?
Total:
113 full-time; 4 part-time; plus contractors.
Cross-solutions/-companies support team:
13 full-time; 4 part-time (between OX Global/OX Rwanda).
Solution - OX EV Truck:
13 full-time vehicle engineers; 3 full-time vehicle technicians; 1 full-time buyer (through OX Global Ltd). Plus contractors as required.
Solution - Business Model:
83 full-time; 1 contractor (through OX Rwanda Ltd).
Solution - Mobile-Enabled:
<5 contractors through Awesomity Lab, Rwanda.
How long have you been working on your solution?
The Global Vehicle Trust ('GVT', a UK non-profit) started working on a diesel OX Truck in 2013. Four diesel prototypes were built.
Simon Davis & Natalie Dowsett joined in 2020 and co-founded:
OX Global Ltd. with a revised business plan for the OX Truck: EV powertrains and a service-oriented approach (running trucks, not selling them)
In 2021 OX Global established OX Rwanda Ltd. for the pilot go-to-market
Tell us about how you ensure that your team is diverse, minimizes barriers to opportunity for staff, and provides a welcoming and inclusive environment for all team members.
OX Global Ltd. has two co-founders Simon Davis and Natalie Dowsett: a 50/50 gender split that we seek to replicate across the companies. This has been achieved in the cross-companies support team.
Engineers/technicians in the UK are weighted towards men. We have goals in recruiting more women in this traditionally-male motor vehicle manufacturing business.
OX Rwanda Ltd. is led by Francine Uwamahoro, who is supported by a gender-balanced Central Team. At the depots/hubs, we have two run by women and two by men. OX Rwanda maintains a 50:50 gender balance overall. We have achieved a 40:60 (f:m) balance within our Driver Plus team and intend to improve and maintain this to 50:50 as operations expand. In order to employ female drivers towards the 50:50 ratio, we’ve started numerous initiatives that maintain a healthy workplace environment for women working with OX.
For example see [https://youtu.be/qrUGj6b4qhg?feature=shared&t=60] for more from a Depot Manager and the support she gets with childcare at the depots. The same support is offered across team-members. Where women are expecting, the companies also offer training in non-field work, e.g. running accounts for the depot and training to become an accountant. In the field, our female DriversPlus are supported by a network of women-led households in frequently-transited villages, who have OX-paid upgraded bathroom facilities and a monthly stipend to support colleagues with bathroom breaks and safe spaces. Shifts are also designed to ensure that they are not driving through potentially unsafe areas or at night.
To encourage more female DriverPlus applicants, we will be starting a one-month training program designed to provide future OX drivers with the skills and knowledge they need to be successful in their careers. The program will cover a wide range of topics, including: vehicle operation and maintenance, road safety and traffic laws, defensive driving techniques, customer service, professionalism, OX Team ways of working (Teamwork), and commercial vehicle licensing/experience. We’re actively in discussions with GIZ Rwanda about this programme, to likely take place in a new depot in Musanze (one of Rwanda’s secondary cities).
In addition, OX Rwanda offers excellent healthcare for all employees and their families, fair and quality working conditions and work/life balance, and progression opportunities. Multiple colleagues have started as e.g., Cargo Officers, and been supported to become DriversPlus with e.g. mechanical specialities and training. In addition, all of our current depot managers started out as drivers, and were supported in their career progression.
All depots run daily standups where issues are surfaced and dealt with. Our depot teams live together at ‘OX Houses’ and we accordingly have policies on safety, respect, and complaints handling, backed by strong policies.
What is your business model?
OX Delivers operates a unique business model centered on providing affordable and accessible transport-as-a-service. We target a range of customers, from smallholder farmers to larger agricultural producers, who all share the challenge of limited access to reliable and cost-effective logistics.
Through our mobile app or a toll-free number, customers can conveniently book cargo transportation. We ensure transparency and fair pricing with a pay-per-use system based on weight (kilograms) and distance (kilometers) travelled. This eliminates upfront investment for our clients, allowing them to integrate our services seamlessly into their existing operations, be it production, manufacturing, or sales.
Our model directly addresses a critical need – connecting businesses to markets beyond their immediate localities. Traditionally, especially for farmers, limited access to transportation restricted their ability to expand their reach and maximize their earning potential. OX Delivers empowers them to access new markets, unlocking significant revenue growth opportunities.
Building trust and understanding local needs are core aspects of our success. We leverage a "Drivers Plus" model. Our drivers go beyond simply operating vehicles; they act as community builders, fostering relationships and trust within the areas they serve. This grassroots approach allows us to gain valuable insights into local logistics challenges. We can then respond promptly by deploying services to address those gaps, naturally expanding our customer base. By empowering our drivers as business developers and immersing ourselves in local communities, we not only gain trust but also acquire actionable data that guides our service expansion. This ensures we're not just present, but truly integrated into the communities we serve.
Do you primarily provide products or services directly to individuals, to other organizations, or to the government?
Individual consumers or stakeholders (B2C)What is your plan for becoming financially sustainable, and what evidence can you provide that this plan has been successful so far?
OX is committed to achieving long-term financial sustainability through a diversified funding strategy that combines grant funding, equity investment, and revenue generation from our core business operations.
Current Funding Streams:
Equity Investment: OX has a strong track record of attracting investment. We have successfully raised a total of GBP 7.8 million through early-stage seed/angel investors. Additionally, our ongoing Series A round has already secured 30% of its GBP 10 million target, ensuring sufficient runway for operations until 2026.
Grant Funding: OX has secured significant grant funding through OX Global and OX Rwanda. We have participated in successful grants with a total project value of GBP 20.9 million, directly receiving GBP 10.3 million. This includes grants from Innovate UK (5 grants), the Advanced Propulsion Centre UK (2 grants), and USAID (2 grants). We recently secured another EUR 1 million grant which will be formally announced soon. These grants have been instrumental in accelerating our R&D efforts and establishing a strong foundation for our logistics business in Rwanda.
Revenue Generation:
Logistics Business: Beyond grant funding, OX is committed to becoming a self-sustaining and profitable business. We launched pilot operations in Rwanda in 2021 and have demonstrably validated market demand for our "transport as a service" offerings. In our latest financial year (ending December 2023), our pilot operations generated ca. USD 800,000 in revenue through a fleet of 20-26 trucks.
Profitability Through Innovation: Pilot operations have allowed us to test the performance of both diesel and electric trucks. This data has provided strong evidence for the significant profit margin improvements achievable through an electric vehicle fleet conversion.
Future Financial Roadmap:
The ability to vehicle financing is a key tool enabling OX to scale. Having financed 16 trucks through debt facilities, OX is developing the repayment track-record and working relationships required to enable further access to debt in the future
Through our logistics business model, we project an additional USD 6.6 million in revenue over the next two years, targeting break-even for OX Rwanda by 2026.
OX's diversified funding approach, coupled with the success of our pilot operations, demonstrates a clear path towards financial sustainability. We are confident that our strong financial foundation and commitment to innovation will enable us to achieve long-term financial success and deliver on our mission.
Solution Team
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Our Organization
OX Global Ltd