In 2014, Neil Du Preez, who was working as a commodities trader overseas, returned home to pursue a dream — to manufacture light electric vehicles that could transport passengers easily through congested cities. Today, he and his team are the manufacturers of three-wheeled electric vehicles used to deliver food and parcels in the Western Cape.
The founder of MellowVans, based in Stellenbosch, started his business due to his interest in electric vehicles and sustainable technology. In its inception, the company’s original design was for light electric vehicles used for passenger transport. At the time, the business was called MellowCabs.
These vehicles are a modified version of a “tuk tuk” — a three-wheeled motorised vehicle used as a taxi in most Asian countries. Du Preez said MellowCabs were unique in a niche market segment. “They provided low-cost, efficient, and emission-free utility services in cities,” he said.
The manufacturing of the prototypes began in 2014, and it took three more years for the company to address manufacturing obstacles to meet safety standards — but this did not derail Du Preez from continuing with production.
He said the manufacturing of the second version started in 2017 before they tested the vehicles in small-scale pilot programmes in collaboration with the chicken franchise Hungry Lion in 2018. Despite initial challenges with the original prototypes, the company has met several safety ratings globally.
“Our vehicle has now achieved safety ratings outside the country, including European homologation. We are the first South African automotive original equipment manufacturer ever to have achieved this safety rating,” he said.
Funding was one of the biggest obstacles that faced the company in its initial stages. It could not receive funding from the department of trade, industry & competition, as it did not meet the requirements for the automotive production and development programme.
However, the company managed to secure funding to continue its work over the years. “We have raised several rounds of funding. Our most current round was with a consortium consisting of a major bank and a family office. The IDC [Industrial Development Corporation] also maintains involvement in MellowVans,” he said.
With the rapid rise in e-commerce fuelled by the Covid pandemic, and people being dependent on last-mile deliveries, Du Preez’s focus shifted from transporting passengers to manufacturing delivery vans. This led to the renaming of the company from MellowCabs to MellowVans in 2021.
“It was a purely commercial decision, with the massive global boom in last-mile delivery, it was a no-brainer. MellowVans are replacing both traditional motorcycle-type deliveries often used in the food delivery category and light van-based deliveries, used for e-commerce and parcels.”
The company, which employs a team of 45 people, including engineers, technicians, designers and support staff, manufactures between two and four units per day at its Stellenbosch facility, and is looking to possibly ramp up production to eight units per day due to demand
Unlike an ordinary motorbike, a MellowVan can carry up to 2,500l in capacity and the average range is about 130km per charge. “This is more than enough for most last-mile delivery applications. When it comes to the speed, as this is an electric vehicle, it is a function of software. We limit our vehicles in South Africa to 60km/h,” he said.
The MellowVans don’t require special charging ports, as they can be connected to a 230V domestic power socket, with a charge time of about four hours. They are also powered by a specially developed lithium-ion battery. While the cells in the battery are imported from Asia, 70% of the vehicle’s contents are locally produced.
The MellowVans can either be bought or leased, with full maintenance contracts. Du Preez said the target for these vehicles is any business that needs to deliver goods.
The company, which employs a team of 45 people, including engineers, technicians, designers and support staff, manufactures between two and four units per day at its Stellenbosch facility, and is looking to possibly ramp up production to eight units per day due to demand.
While the MellowVans have become the delivery vehicle of choice for companies such as logistics giant DHL Africa in some areas, they have also gained popularity in other countries. “We are seeing huge growth in the last-mile market, especially in Europe. We’re currently sending vehicles to Italy, Germany, the Benelux [Belgium, the Netherlands and Luxembourg] and Spain. That being said, we’re seeing massive demand from Egypt, and the Middle East,” he said.
Looking at the future of the company, Du Preez hopes to expand MellowVan’s European and Middle Eastern distribution reach. He was also optimistic about a possible entry into the North American market. “In the North American market, I think the MellowCabs, which were used in transporting passengers before we moved to deliveries, could possibly make a comeback.”
MellowVans has also partnered with the Commercial Transport Academy to empower women to participate in the food and goods delivery industry using motorcycles. They are expected to train at least 11 women who will be delivering groceries using the three-wheeled vehicles. “We’re working with them on training a batch of female drivers, which will be a female-only delivery programme with one of the South African retailers.”
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