Summary of "This Flatpack Electric Van Is The Uber For Potatoes! | Fully Charged Show Podcast with OX Delivers"

Release Date: September 30, 2024
Host: Robert Llewellyn
Guest: Simon Davis, CEO and Co-Founder of OX Delivers
Location: Electric Vehicle Workshop, Warwickshire

Introduction

In this engaging episode of The Fully Charged Podcast, host Robert Llewellyn visits the electric vehicle workshop in Warwickshire to explore the innovative work of OX Delivers. This pioneering company is revolutionizing logistics in Rwanda with their flat-pack electric vans, earning the moniker "Uber for Potatoes." Simon Davis, the CEO and co-founder of OX Delivers, joins Robert to discuss the mission, business model, and the transformative impact of their electric vans on African trade and sustainability.

OX Delivers: Mission and Vision

[00:04] Robert Llewellyn:
"Welcome... with a very, very special company called OX Delivers, who make incredible flat, packaging, super durable electric vans which they build and operate in Rwanda."

Simon Davis elaborates on OX Delivers' mission to "supercharge trade in Africa," focusing on designing electric trucks specifically built for dirt roads. He highlights the stark contrast between efficient logistics in places like Warwickshire and the challenging conditions faced by farmers in East Africa, where unreliable transport methods impede economic growth.

[01:14] Simon Davis:
"...making that trade affordable, reliable and clean."

The Existing Logistics Challenge in Rwanda

Robert points out the reliance on outdated, imported vehicles in Rwanda, which are ill-suited for the country's rugged road conditions. Simon confirms that over 90% of vehicles in Africa are used imports, often up to 19 years old, leading to high maintenance costs and inefficiency.

[02:48] Simon Davis:
"In Africa, upwards of 90% of vehicles are imported, used, sometimes very used. Like in Nigeria, a quarter of all vehicles imported are 19 years old at the point of import."

Innovative Vehicle Design

The conversation shifts to the design of OX Delivers' electric vans. Initially designed by Gordon Murray, known for the McLaren F1, these vans were re-engineered to meet the specific demands of African roads. Simon emphasizes the importance of creating a "simple and effective vehicle for running on these kind of roads."

[04:14] Simon Davis:
"Nobody's designed a vehicle for use on dirt roads since, say, the Land Cruiser 70, which was launched in the early 80s."

Revolutionizing the Business Model: Transport as a Service

A significant portion of the discussion centers on OX Delivers' unique business model, which diverges from traditional vehicle ownership. Instead of selling vans, OX Delivers leases space in their trucks, enabling farmers to transport goods affordably and efficiently.

[07:12] Robert Llewellyn:
"...you're actually doing this much more as kind of vehicle, as a service model."

Simon explains how this model transforms the logistics landscape for farmers like Jean Pierre, a chili pepper farmer, who can now transport his produce more rapidly and reliably, significantly increasing his productivity and income.

[07:34] Simon Davis:
"He’s gone from doing one trip a fortnight with 3 or 400 kilos. But can you imagine taking 3 or 400 kilos of chili peppers on a bus? He now sends two trucks a week. So he's more than 10x'd his business..."

Impact on Local Economies and Farmers

The episode highlights the profound economic impact OX Delivers has on local farmers. For instance, Beatrice, a tomato wholesaler, increased her daily trading volume from $70 to $700 by utilizing OX Delivers' services, empowering her to invest in land and personal infrastructure.

[10:58] Simon Davis:
"...since working with Ox, she's gone from trading about $70 a day in tomatoes to $700 a day...she was going to call it the Ox House because we've made it possible for her to do that."

Scalability and Market Potential

Simon reveals that OX Delivers has successfully served around 5,000 customers, proving the viability of their model. With Rwanda's population of 13 million and East Africa's 300 million, the market potential is immense, especially as Africa's population is expected to double in the next two decades.

[12:17] Simon Davis:
"Rwanda is 13 million people alone, East Africa 300 million. And it's a market that's growing enormously."

Technical Aspects and Flat-Pack Innovation

The engineering behind the flat-pack design is discussed, emphasizing its efficiency in shipping and local assembly. This approach not only reduces costs but also fosters local skills and maintenance capabilities.

[14:32] Simon Davis:
"One of the core innovations back from the original start of the project was recognizing building vehicles is complex... by flat packing then we can reduce our shipping costs, we can drive more local content..."

Charging Infrastructure and Renewable Energy Integration

Addressing concerns about Rwanda's charging infrastructure, Simon notes that Rwanda’s grid is predominantly powered by renewables and that OX Delivers' logistics model allows for efficient charging at centralized bases, aligned with the country's green energy initiatives.

[16:20] Simon Davis:
"Charging can be done at base. We don't need charges spread all over the country. And so our trucks are charged basically each night at home..."

Future Outlook and Expansion Plans

Looking ahead, Simon anticipates significant growth for OX Delivers, with plans to scale operations to hundreds of trucks and tens of thousands of customers. He envisions transport as a service becoming a dominant model, especially as autonomous vehicles emerge.

[26:34] Simon Davis:
"...we'll have hundreds of trucks running on the road serving tens of thousands of customers."

Challenges and Overcoming Barriers

Simon discusses the challenges OX Delivers has faced, including securing investment for a non-traditional business model and engineering hurdles in designing durable vehicles for harsh environments. He emphasizes the importance of a data-driven approach and teamwork in overcoming these obstacles.

[31:10] Simon Davis:
"...mobilizing capital, I guess, has been our biggest challenge."

Vision for Transport as a Service in Western Markets

Expanding beyond Africa, Simon believes that transport as a service has potential in Western markets, particularly as the cost of autonomy decreases. He advocates for a shift from vehicle ownership to service-based models, drawing parallels to how digital services have transformed media consumption.

[28:15] Simon Davis:
"...this move to a as A service based model is at least a bigger change again because we should be building vehicles that last decades."

Personal Insights and Company Growth

Reflecting on his journey, Simon shares personal insights and the rapid growth of OX Delivers from a small team to 127 employees. He underscores the fulfillment derived from making a tangible difference in people's lives and contributing to sustainability.

[25:46] Simon Davis:
"...we're at 127 people now."

Conclusion

Robert Llewellyn concludes the episode by expressing admiration for OX Delivers' innovative approach to sustainable and inclusive transportation. He highlights the company's role in unlocking economic opportunities and emphasizes the importance of affordable logistics in the clean energy transition.

[34:27] Robert Llewellyn:
"...companies like OX Delivers exist that aren't just looking at creating clean transportation, but transportation that is inclusive and can unlock huge economic opportunities."

Notable Quotes

• Simon Davis on Business Model Innovation
  [05:36]: "...we don't ever want to take these vehicles off the road, right? We want them to last 20, 30 years."

• Impact on Farmers
  [10:58]: "...she wants to build a house. And she told me last time I was in Rwanda that she was going to call it the Ox House because we've made it possible for her to do that."

• Flat-Pack Efficiency
  [15:20]: "...by flat packing then we can reduce our shipping costs, we can drive more local content and obviously that then helps when we come into maintenance and things like that."

• Future of Transport as a Service
  [29:49]: "...we would switch to as a service later. In Africa, they don't have a big car collection. So as a service just makes sense."

Key Takeaways

1. Innovative Business Model: OX Delivers utilizes a transport-as-a-service model, leasing space in electric vans to farmers, thereby making logistics affordable and efficient.
2. Customized Vehicle Design: The electric vans are purpose-built for Africa's challenging dirt roads, ensuring durability and low total cost of ownership.
3. Economic Empowerment: By improving logistics, OX Delivers significantly boosts farmers' productivity and income, fostering economic growth.
4. Scalability and Impact: With proven success in Rwanda, OX Delivers aims to expand across East Africa, tapping into a vast and growing market.
5. Sustainable Integration: The company's operations leverage Rwanda's renewable energy grid, aligning with global sustainability goals.
6. Future Prospects: OX Delivers envisions widespread adoption of transport-as-a-service, influenced by advancements in vehicle autonomy and changing consumer preferences.

This episode of The Fully Charged Podcast offers a comprehensive look into how OX Delivers is transforming African logistics with sustainable, innovative solutions. Simon Davis' insights shed light on the intersection of technology, business innovation, and socioeconomic development, highlighting a model that could inspire similar initiatives globally.