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 đ
Check out the new âSPAC Radarâ we have included to capture the growing trend in the supply chain and mobility sectors.Â
Also, shout out to Michael and Uzi for the passalongs.
We Are Dynamo,
Santosh, Ted, Barry, Jon, Rachel, and Emily
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Supply Chain đŚ
Restaurants and Startups are Trying to Outrun Big Food Delivery Apps. Restaurants are finding ways around the food delivery aggregators by organizing their own deliveries or using other providers. Uber Eats and Grubhub can take as much as 30% of the order value and this is trickling down to the consumer as restaurants mark up their prices. Related, Ghost Kitchens Make their Way Onto College Campuses.
đDigital Reinventing for the Trucking Industry. As the trucking industry embraces technology, there are growing opportunities for companies to explore new routes to growth through fleet services, goods mobility, and other emerging revenue channels. As part of this study, IBM defines the the truck-as-a-service market and estimates it to surpass $99.2B by 2030. Also, in the realm of trucking, Fleets Use New Technology to Remove Busywork and Improve Safety while Fed Economists See Surging Freight Rates Lifting Inflation.
đPeople Are Willing to Pay More for Shipping if it Helps Tackle Climate Change. Maersk spends $4B a year on fuel and might need to double that spend to meet their carbon-free goals. Maersk would have to increase its rates by 20% to cover the increased fuel costs which would ultimately lead to increases in the products consumed day-to-day. Speaking of carbon-free, USPSâ New Trucks Are Not all EVs and Look Like Ducks.
US Retail Sales in 2021 Will Rise More Than 8% Amid Vaccine Rollout. Along with the potential for increased in-person shopping (due to vaccine rollouts), other drivers of the economy point to growth, such as stock valuations, rising home prices, government stimulus, and low-interest rates, all of which support an increase in consumer spending. Elsewhere, Investor Group Nominates Nine Candidates for Election to Kohlâs Board after noting significant opportunities around inventory management and supply chain improvements.
Global R&D Funding Forecast 2021. Over the past six decades, R&D investments have declined several times because of economic variations and cycles. North America, South America, and Europe will continue to lose R&D leadership shares in 2021, even as their spending levels rise with the global economic recovery. Unrelated, Shippers Could Avoid D&D Fees and Shortages by Using Their Own Boxes.Â
Biden Orders Review of US Supply Chains After a Year of Shortages and Delays. ThePresidentsigned an executive order resulting in a 100-day review of supply chains by the executive branch for pharmaceuticals, critical minerals, semiconductors, and large capacity batteries. Specifically, the shortage of semiconductors could cause automakersâ earnings to fall by billions this year. Related, US and Allies to Build 'China-free' Tech Supply Chain and Chinaâs Full Truck Alliance has Confidentially Filed for US IPO.
Amazon Launches Service to Detect Defects in Manufactured Products. Amazon Lookout for Vision is a cloud service that analyzes images using computer vision to spot product or process anomalies in manufactured goods. It aims to combat human error by introducing AI that can detect defects in products from their appearance. Elsewhere in Amazon, Air is Close to Building a Freighter Network to Carry 3P Volumes and Freight Shares Delivery Data to Researchers for MIT Route Planning Contest.
FreightWavesâ Global Supply Chain Week Round-Up:Americaâs Crumbling Infrastructure Needs Intentionality, GE Lighting logistics VP on 3PL Partnerships, Warehousing and Automation Explosion Driven by eComm, COVID and Parcel Carrier Challenges.
Mobility đÂ
Tesla Shuts Down Model 3 Production Line for 2 Weeks Amid Chip Shortage. The EV automaker was at the forefront of the software-defined vehicle and as a result, relies on silicon in the production of itâs vehicle. The main unit in question is the âFull Self-Drivingâ computer powered by a chip of its own design produced by Samsung. The shortage has resulted in several vehicle production lines halting, such as GM, Ford, Nissan, Toyota, Volkswagen, Subaru, and Fiat Chrysler. Related, GM Says the Worst of Chip Shortage May Be OverÂ
VW Sells more EVs than Tesla for the First Time. Although this is an impressive feat for VW, it is essential to note that their plug-in hybrids were included in the count. Both full battery-EVs and plug-in hybrids, which also have a combustion engine on board, count as âelectric carsâ in documents and targets, but mild hybrids without a plug-in do not. Elsewhere in the VW family, Porscheâs Synthetic Fuel Will Make Internal Combustion as Clean as EVs while Fisker and Foxconn Collaborate on EV Project.
The Impacts of UKâs Uber Ruling on the Global Gig Economy. According to the UK Supreme Court, Uber drivers are now classified as workers rather than independent contractors, allowing them minimum wage and the right to receive pay while deadheading. The court hopes this ruling will re-order the gig economy and bring an end to workersâ exploitation.
đHyundai Bought Chips When Rivals Didn't and Assembly Lines are Still Rolling. The automaker kept buying chips even as rivals cut orders to reflect diminished demand brought on by the pandemic. Hyundai bought from chipmakers and global auto parts suppliers before the shortage worsened, managing to keep costs down and maintain a stockpile of low tech chips to help keep them in production. On the flipside, Hyundai Will Replace Battery Systems in $900M Global EV Recall.
APIs that Sit Between Sensors and Vehicle Apps. Driver assist systems have been around for a long time now and rely on a variety of sensors and sub systems. That said, OEMs and Tier 1s, still lack APIs to link the sensors and applications that run on a vehicleâs computer system.
The Integrated Systems are the Future of Car Navigation. GPS mapping technology, currently used by drivers on their smartphones and on-dash devices, is being incorporated into cars by automakers in the forms of AR and directions in the windshield. These factory-installed systems offer better accuracy, more features, and better integration. Â
Inefficient Red Lights Cost Drivers 17M Hours Daily. Those delays are most often found in densely populated cities like New York and Los Angeles. If better-coordinated timings increased travel speeds by 10% that could cut emissions by at least 5% and reduce up to 80K gallons of gasoline wasted each year across the 25 intersections with the worst delays. But LA might see relief sooner as Archer Aviation Aims to Launch Urban Air Taxis by 2024.
Fundraises and M&A đ¸
Gophr Raises ÂŁ4M Led by Nauta Capital. Gophr is a UK-based last-mile delivery provider. The company intends to use the funds to strengthen its core product through improved UX and client customization options and expand operations and business reach.Â
Koffie Labs Raises $4.5M in Seed Round Led by Anthemis Group and Lerer Hippeau. Koffie Labs is a New York City-based insurtech startup solving issues commercial vehicle insurance poses on trucker policyholders and providers. Koffie's AI-driven predictive models, which underwrite dozens of safety features, allow the company to build insurance for emerging risks like self-driving vehicles.
Nyobolt Raises $10M in Series A Led by IQ Capital. The Cambridge-based battery materials company is developing a new category of ultra-high power technology. The company is rapidly expanding its global technical and commercial presence, with teams in the UK, the US, and Asia.Â
SoundCommerce Raises $15M Series A. SoundCommerce helps consumer brands and retailers optimize and scale their omnichannel and eComm operations. The money will be used to scale the business and build out a client roster.Â
Gettacar Raises $25M Led by 3L and Luxor Capital. The Philadelphia-founded startup is an online car sales platform where customers could shop for a used, reasonably priced car and get it delivered the next day. With the money, Gettacar will continue investing in the customer experience, expand into additional markets, and product development.
NextCar (NXCR) Raises $30M in Seed Round. NextCar says it is pioneering Car-as-a-Service, which allows consumers to keep their vehicle for as long as it serves their needs and return it when their lifestyle changes. Funds will be used to grow the companyâs team of employees and refine its subscription platform.Â
Shippo Raises $45M in Series D Led by D1 Capital Partners. Shippo is trying to assist small and medium businesses with the same logistical shipping power as Amazon Prime. They plan to use the funding to grow its global presence, revamp its core products, provide shipping capabilities for more online platforms and marketplaces, and hire 150 more employees.
InfraMarket Raises $100M in Series C Led by Tiger Global. This new unicorn in India helps small businesses, such as manufacturers of paints and cement, improve their productsâ quality and meet various compliances. They plan on using the funds to enhance their technological offerings and break into new markets.Â
Goodyear Acquires Cooper Tire for $2.8B. Cooper is the 5th largest tire maker in North America based on revenue. The century-old Ohio manufacturers will bring in about $165M within two years of closing and bring an array of tire brands together under one roof.Â
Kuehne+Nagel Acquires Apex for $1.5B. Germany-based global 3PL services provider K+N is making its largest acquisition to date by inking a deal to buy Shanghai, China-based freight forwarder Apex International Corporation. The acquisition provides K+N a chance to offer customers access to the competitive Asian logistics industry.
SPAC Radar đĄ
Xos in $2B Deal with NextGen Acquisition Corp SPAC. Xos is a maker of electric commercial vehicles with customers include United Parcel Service, armored car service company Loomis AB, and transportation company Lonestar. NextGen Acquisition was started by Mattson and former Carlyle Group executive Gregory Summe and raised $375M last fall in an initial public offering.Â
Berkshire Grey in $2.7B Deal with Revolution-affiliated SPAC. Berkshire Gray is a warehouse robotics company that offers picking solutions for high volume/throughput environments. Revolution Acceleration Acquisition Corp is sponsored by Revolution Group with existing investors rolling their equity in the transaction.
Joby Aviation in $6.6B Deal with Reinvent Technology Partners SPAC. Joby Aviation is a futuristic electric aviation company based in Northern California. Reinvent Technology Partners is a blank check company run by LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus.Â
Lucid Motors in $11.75 B Deal with Churchill Capital IV Corp SPAC. The California-based EV maker, founded by former Tesla executive Bernard Tse and entrepreneur Sam Wenghad said it aims to start selling its first luxury model, Lucid Air, early this year. Churchill Capital IV Corp is a blank-check firm backed by Wall Street dealmaker and former Citigroup banker Michael Klein.Â
Company Building đ ď¸
WfH is Corroding Our Trust. âWhile employees were willing to give one another some latitude earlier in the pandemic, now, almost a year in, their trust is wearing thin, and some find themselves wondering whether their remote employees are actually working at home. Companies that fail to address this crisis are likely to see lower morale, increased attrition, lower productivity, and stalled innovation. Leaders need to address the underlying issues in order to build a sustainable model of trust.â
Sales Ops 101. Sales Ops is up there in hires that are made too late. Sales Ops professionals help get the telemetry around your sales org together - makes for easier pipeline management, quota attainment tracking, forecasting, et al.Â
Founders Guide to the Secondary Stock Sale. A basic overview of selling founder stock in a secondary sale.
Who's Hiring? đŠâđť
Lead Backend Developer at Milk Moovement in St. Johnâs, Halifax (remote ok).
Pricing Analytics Manager at sennder in Berlin, Germany.
DevOps Engineer at nextmv in Philadelphia, PA (remote ok).
Check out other jobs at Dynamo portfolio companies.
đĽ Have you seen any interesting startups recently? Introduce us.
â¤ď¸ We would love your support. Please forward to friends and share on social media.
đď¸ If you were forwarded this and found it interesting, please sign up.
đ Check out Dynamo's podcast series, The Future of Supply Chain.