Dynamo Dispatch. Weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Weekly Commentary 💭
The interesting news this week came from brokerage stalwart CH Robinson who announced the launch of Robinson Labs as part of their $1B investment commitment to technology. Per the company, the innovation incubator is designed to create, test and scale technology solutions for the global logistics giant and its customers.
Without a doubt, CHR sits on some interesting technology assets between their Navisphere visibility platform and the rebooted acquisition of Freightquote, a digital brokerage offering. It’s also worth noting that the company boasts 1,000+ engineers and data scientists that will be complemented by Robinson Labs. The size and scale are laudable in the face of venture-backed startups that have a fraction of the capital and talent base.
That said, this effort doesn’t appear to help the $11B company escape its own gravitational pull and discover ways to disrupt itself before others can. We can’t help but to wonder if this will actually just further the status quo and become a textbook case of the Innovator’s Dilemma (RIP Clayton Christensen). The language and examples make me believe this is simply a professional services effort to embed legacy software into the ecosystem.
However, self-disruption might not be the purpose of this effort. Labs might be helpful in three areas: 1) to shine a light on the existing technology assets that CHR has without doing a carve out or minority float to help the share price, 2) to have a footprint among shippers through Navisphere which could be a trojan horse to market-wide intelligence on capacity, rates, services level, 3) to (unintentionally) help the old guard of software vendors who are benefitting from platform effects brought on by integrations that they didn’t consider decades ago when they started.
The great news is that the game is relatively unchanged for the disruptors of tomorrow. If anything, the move shows that technology and upstart solutions are making it into the boardroom dialogue of the #1 freight brokerage. Disruption will still come from small, oft-dismissed players who can embrace their size to move quickly in bringing a product to market that’s exponentially better than the incumbent. Importantly, over the last several years, we’re seeing startups bring supply chain experience and relationships into the fold not only on the founding team but also in key management roles. If you are thinking about the future of supply chain and building a disruptive, market-defining business -- reach out to us at hello@dynamo.vc.
We Are Dynamo,
Santosh, Ted, Barry, and Jon
PS - Welcome Dalton Fouts who joined us earlier this week as our springtime Venture Fellow.
Note: please add “dynamo@substack.com” to your email client so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
Map of Amazon’s Rapid Warehouse Expansion. Since launching its first two warehouses in 1997, Amazon now has 110 active fulfillment centers in the US and more than 185 globally. Another 33 are on their way, but as of now, California tops the list in the US with 17 locations. On the effects of this growth in warehousing, New Warehouse Supply Projected to Exceed Demand Over Next Two Years and Fighting Warehouse Worker Fatigue With Wearables.
CH Robinson Launches Supply Chain Technology Incubator. The incubator is part of the $1B commitment to technology the group announced late last year. It will be customer-centric and leverage existing CHR technology such as Navisphere. As mentioned above, it feels more like a professional services play than an effort to develop the next self-disruptive business. Speaking of corporate innovation, Gartner: 80% of Supply Chain Blockchain Initiatives Will Remain at a Pilot Stage Through 2022.
⭐World Economic Forum: The Future of the Last-Mile Ecosystem. Last mile continues to see explosive growth and headaches along with it. WEF estimates that urban deliveries are expected to add 11 minutes to daily commutes and increase carbon emissions by 30%. Related, DJI on the Benefits of Drones in the Logistics Industry and Amazon, DHL, and IKEA Front New Group That’s Pushing for More Electric Vehicles.
📊More Than $1T Needed to Meet Shipping’s Green Initiative. A new report by University Maritime Advisory Services consultants determined that in order to achieve the IMO 2050 target of reducing carbon emissions by at least 50%, shipping and energy sectors will need to spend at least $50B annually. 87% of the investment is needed in the land-based infrastructure and production facilities for low carbon fuels, with only 13% of the investment related to the ships themselves. On the topic of ships, GPS Outages Causing Issues in Maritime.
ATA Truck Tonnage Increased 3.3% in 2019. Truck tonnage continues its 10-year streak of consecutive annual gains but at half the rate of last year’s 6.7%. Looking ahead, DAT Expects Firmer 2020 for Carriers.
Product Radar:project44 Announces Partnership with BluJay, Waymo Trucks Headed to New Mexico and Texas, and CargoCast Launches RFID Tracking for Air Freight.
Money Managers Venture Into Risky World of Trade Finance. Trade finance is drawing interest from a new sector. Namely, Allianz SE and AIG are moving into the space. This influx could help close the reported $1.5T trade-finance gap holding back international commerce.
Mobility 🚗
⭐Cruise Unveils Origin, an Electric Driverless Vehicle Designed for Sharing. Cruise has been quiet for the last several months, but Kyle Vogt and team made some serious noise last week with the reveal of its no-pedal, no-steering wheel, shuttle. Details are sparse, but Cruise intends to test the vehicle on Honda and GM campuses until the federal government permits steering wheel-free vehicles. Related, Players in Autonomous-Driving Race May Bet on “Lidar as a Service”.
Mortenson: Electric Vehicle Industry Trends. In this report Mortenson determined that the #1 barrier to fleet electrification continues to be lagging infrastructure. Still, Mortenson predicts that 48% of fleets will be clean in the next 5-7 years. Related, check out last week’s Future of Supply Chain where we hosted Chris Nordh from Ryder to discuss electrification of commercial vehicles.
Boeing Doesn’t Expect Regulators to Sign off on 737 Max Until Mid-2020. Boeing’s projected timeframe for the return of the 737 Max isn’t until July now, months later than previously expected. Carriers are agonizing in anticipation, having already missed one peak season without the new fuel-efficient planes.
📊AAA: Owning an Electric Vehicle is the Cure for Most Consumer Concerns. AAA’s survey found that 96% of EV owners plan to stick with electric when in the market for a new car, and that 87% primarily use their EV despite also owning a gas-powered car.
Tesla CEO Elon Musk Is Set for $364M Payday. Two years ago, Elon Musk entered into a “100 percent at-risk performance award” agreement, tying his compensation entirely to the company’s performance. The clock started ticking on his first tranche of payouts last week when Tesla reached a valuation of $103B, making it the world’s second most valuable automaker behind only Toyota. ICYMI, Prices for the Rivian Truck and SUV Will Be Lower Than Previously Announced.
Daimler to Shut Down Lab1886. It was rumored last week that Daimler is shuttering its innovation lab. Lab1886 is responsible for developing a number of new business lines for the company, including car-sharing service car2go, Moovel, and Mercedes me. This is something to keep tabs on in the coming days to see whether Daimler makes a confirmation.
Ericsson Reveals Plans for 5G, IoT, and Self-Driving Buses. Nobina, the largest public transport service provider in the Nordic region, rolled out 6-seater driverless busses in the suburbs of Stockholm in partnership with Ericsson. The small busses, which travel at under 20km per hour, are steered using laser radar and GPS. On the topic of wireless, did you know Drivers Pay 4x More For Cell Phones Than Roads?
Spin Selects 6 Nonprofits for Mobility Data Fellowship. Micromobility operator Spin is providing its “street data toolkit” including data platforms from StreetLight Data, Populus, and Strava Metro SaaS to contribute to city infrastructure and safety improvements. Hopefully, this trend continues. Many mobility companies are already openly sharing their data with cities, but nonprofits have typically been left out.
Fundraises, M&A, Talent 💸
ChAI Raises $1.7M Pre-Seed from Passion Capital, MMC, and Dynamo Ventures. Welcome to the newest member of the Dynamo family. Tristan and team are using alternative data to better inform supply chain and finance organizations around supply/demand, pricing, and risk management of their key commodity inputs. Metals are their first focal area, especially those not regularly traded. They love speaking with customers!
GoPuff Raises $750M From SoftBank. Philadelphia-based on-demand delivery startup GoPuff quietly raised $750M from SoftBank in August, with an option to invest an additional $250M this year. The Softbank and Accel-led investment would make GoPuff among the best-funded Philadelphia software startups in recent years.
Berkshire Grey Raises $263M Led by SoftBank. Berkshire Grey is a Massachusetts-based developer of pick-and-place robots for commerce. It was rumored that SoftBank originally offered to buy Berkshire Grey before the two sides settled on the venture deal. Canaan Partners, NEA, and Khosla Ventures also participated.
Bounce Raises $105M Co-Led by Accel Partners and B Capital. Bangalore-based Bounce rents dockless bikes and scooters in over 30 cities in India. This round supposedly values the company just north of $500M.
Scoutbee Raises $60M Led by Atomico. Scoutbee is a Germany-based digital supplier discovery and procurement platform. The raise will go toward hiring 100 employees by yearend, R&D, and exploring strategic acquisitions.
Zoomcar Raises $30M Led by Sony. Zoomcar, an Indian self-drive mobility platform, held a $30M first close on a $100 million-targeted Series D round last week. The company intends to use the new funds to focus on improving its IoT layout and other product features.
Soft Robotics Raises $23M Led by Calibrate Ventures. Soft Robotics is a Massachusetts-based startup focused on developing robotic grippers that make use of soft material endpoints that can more easily grip a range of different objects without the low-tolerance complex programming that’s required for most traditional industrial robotic grippers. Fanuc Corp. and return backers Honeywell, Hyperplane, Scale, Tekfen Ventures, and Yamaha joined the round.
Shyft Raises $15M Led by Inovia Capital. Shyft is an SF-based relocation marketplace that tries to take the stress out of job-related moving. The company pivoted from its previous focus of working on software to make estimates for moving.
Tealbook Raises $5M Led by Refinery Ventures. Tealbook is a Toronto-based online supplier knowledge management platform. Refinery Venture was joined by investors Grand Ventures and Workday Ventures.
Airspace Link Raises $4M Led by Indicator Ventures. Airspace Link is a Detroit-based startup that automates flight path and FAA clearance for commercial drones. Put simply, the company provides a set of turn-by-turn directions for commercial drones.
Stasher Raises Raises $2.5M Led by VentureFriends. Stasher is a London-based luggage storage startup. The company hosts a marketplace and app that connects travelers, event attendees, and vacation rental guests with local shops and hotels that can store their luggage on a short to medium-term basis.
Moov Raises $2.4M Led by NFX. Moov is an SF-based startup building a used manufacturing equipment marketplace platform. Moov has almost $500M worth of equipment listed on its platform. The company said it intends to use the funding to ramp up hiring both domestically and into Asia.
Epost Raises $700K Led by Vynn Capital. Founded in August 2018, Epost provides both B2B and B2C end-to-end cross-border eCommerce services. The company said it plans to use the new funds to further expand its operations in Southeast Asia, particularly in Indonesia and Thailand.
Muuve Raises Undisclosed Amount From Ooctane. Founded in 2018, Cambodian-based Muuve uses an asset-light approach by crowdsourcing its delivery partners, which it calls “Muuvers.” The company offers more than 18,800 different food items on its menu via a network of over 350 restaurant partners.
Uber Sells India Food Delivery Business to Zomato. As part of the deal, Uber will take a 9.99% stake in the Indian startup, helping it maintain its presence in the sector. Zomato operates in more than 500 cities in India; the deal is likely to give Zomato an edge over its rival Swiggy in the fiercely-contested sector.
Uber Freight Taps Amazon Alum Christenson to Run Europe. Christenson spent time in several industries including consumer reporting and software before settling at Amazon, where he spent nearly 5 years divided between Seattle and Luxembourg as a GM and P&L business leader. He will relocate to Amsterdam for the new role.
Company Building 🛠️
Repositioning Your Product. Some valuable frameworks and thinking related to bringing a product to a new audience. This is common in supply chain startups as often times product/market fit is achieved with one vertical or group and needs to be scaled to adjacent industries.
Wireframes Aren’t Just for Designers. Wireframing is not so much a technique for creating as it is for translating requirements and ideas into a visual language that can be easily understood. I’ve found that wireframes help one think through a potential solution more clearly and communicate it/ask for feedback more effectively.
The Engineering’s Guide to Career Growth. “The best career advice I have for young engineers is to focus on learning instead of worrying about tracks and career ladders. That way, no matter what path you take as an IC, domain expert, engineering manager or even PM, you’ll only get better over time.”
Who's Hiring? 👩💻
Director of Engineering at Plus One Robotics in San Antonio, TX.
Full Stack Developer at ChAI in London, England.
Enterprise Account Executive at LEAF Logistics in New York, NY.
Check out other jobs at Dynamo portfolio companies.
❤️ We would love your support. Please forward to friends and share on social media.
🗞️ If you were forwarded this and found it interesting, please sign up.
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.