Dynamo Dispatch. A 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 💭
People often ask us what parts of the supply chain we find most interesting. While it’s impossible to pick a favorite, we do find ourselves spending time deep diving into specific topics. Not surprisingly, we’re looking into how exactly AI will play out for logistics, specifically zeroing in on broker and/or forwarder workflows. Additionally, we’re assessing potential venture opportunities that tackle friction points in the workflows between suppliers and manufacturers. Be on the lookout in the near future for our findings! And if you’re building in these areas, please reach out.
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Madelyn, Derrek, and the rest of the Dynamo team
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Supply Chain 📦
⭐ Gears of US Economy Look Durable on Land, Sea, and Air. The Federal Reserve's latest Beige Book suggests that the US economy is managing recent supply disruptions well, with minimal inflationary pressures and logistical challenges. While there were shipping delays due to incidents like attacks on vessels and the destruction of the Key Bridge in Baltimore, widespread price increases have not occurred. The Port of Los Angeles indicates strong trade activity, with rising import and export volumes, signaling resilience despite past ups and downs. Additionally, the air freight market is tightening, driven by strong e-commerce demand from China, leading to concerns about rising rates and space availability during peak seasons. For more on disruptions, FBI Opens Probe Into Baltimore Bridge Collapse while Panama Canal to Increase Transit Slots and Raise Draught Limits.
Trucking Oversupply Is Weighing on Carriers’ Earnings Outlooks. The trucking industry is facing challenges as retailers and manufacturers focus on cutting shipping costs, leading to a decline in freight rates. Trucking capacity remains high despite some small operators leaving the market, contributing to the downward pricing trend. Analysts have lowered earnings outlooks for trucking companies, especially in the truckload market, as excess capacity continues to impact pricing. Despite these challenges, some industry executives remain cautiously optimistic about a potential recovery in the near future. As specific points of evidence, Trucking Firms Tumble After JB Hunt and Knight-Swift Signal Longer Road to Recovery.
Apple CEO Visits Vietnam As US Tech Giant’s Supply Chain Shift Stirs Unease in China. Apple CEO Tim Cook is focusing on diversifying the company's supply chain during his visit to Vietnam, where Apple plans to increase spending on suppliers after spending $16B since 2019. This move comes after Cook's recent visit to China, where he praised the country's supply chain while reassuring continued investments in research, development, and supply chain operations in China. Despite these efforts, there are still concerns about Apple shifting manufacturing to countries like Vietnam and India, highlighting the potential challenges amid growing tensions between the US and China. In other friendshoring news, Tesla Signs Strategic Deal with Tata Electronics for Semiconductor Chips.
Smaller US Manufacturers Warm to Biden’s Big Industrial Plan. The Biden administration's industrial policy is gaining traction among small and mid-sized manufacturers, with nearly half surveyed believing it can lead to an American manufacturing renaissance. However, challenges remain as federal investments primarily benefit larger companies like Intel and Samsung. Despite political divisions, there's a growing acknowledgment of the need for a strong industrial policy, reflecting the shift in thinking within the US manufacturing sector. However, Manufacturing Has a $225.8B Absentee Problem and Skills Gap a Tipping Point for Manufacturing’s Future.
Amazon Becomes the Largest US Private EV Charging Operator. Amazon's investment in EVs and charging infrastructure, particularly for last-mile delivery, reflects a significant step in its carbon reduction efforts. With over 17K chargers installed and a growing fleet of electric vans, Amazon is leading the charge in the transition to sustainable transportation. However, challenges remain, especially in decarbonizing longhaul trucking and addressing logistical issues such as charger sharing and spare parts availability for EVs. Also, How AI Is Helping Amazon Save Half A Million Tons Of Packaging Per Year and First Look at Amazon’s New Robotic Fulfillment Hub in Massachusetts.
Mobility 🚗
⭐ Exclusive: Mexico, Facing US Pressure, Will Halt Incentives to Chinese EV Makers. Mexican officials are ending the incentives offered to Chinese EV makers such as tax cuts or low-cost public land after a push from US officials. This decision comes amid concerns about national security risks from Chinese automakers flooding the market and that they are using the USMCA free trade zone as a “back door” to avoid paying US tariffs. Mexican officials are caught between the economic interests of China and the political pressures from the US, with the USMCA trade pact up for revision in 2026 potentially influencing their stance on Chinese investment. In other EV developments, EV Fast-Charging Comes to Condos and Apartments.
VW Workers Vote to Join UAW in Historic Southern Win for Union. Volkswagen workers in Tennessee voted to join the United Auto Workers (UAW) in a significant win for the union, marking the first time a southern auto plant outside the Detroit automakers has been organized by the UAW. The vote, with 73% in favor of union representation, reflects growing interest in unions following pandemic-related challenges and successful contract negotiations by the UAW with other automakers. The UAW plans to leverage this victory to organize more nonunion factories across the South, aiming to strengthen its bargaining power and boost membership amidst challenges in the auto industry. Despite potential hurdles, such as concerns about labor costs and job growth, the UAW's success in Chattanooga signals a broader shift in labor dynamics in the automotive sector.
The EV Bust in Europe Is a Red Flag for Region’s Climate Goals. Europe is experiencing a decline in EV sales, indicating that the market still relies heavily on subsidies. Factors such as high costs beyond purchase, limited charging infrastructure, and declining resale values are deterring potential buyers. Governments are reevaluating subsidy programs, with some countries offering targeted grants for EV purchases by low-income families. However, challenges persist in balancing affordability, infrastructure development, and regulatory goals to phase out combustion-engine cars by 2035. Elsewhere, Canada Extends Electric Car Purchase Incentive.
Mercedes Becomes the First Automaker to Sell Autonomous Cars in the US That Don’t Come with a Requirement that Drivers Watch the Road. Mercedes has started selling level 3 autonomous vehicles in California and Nevada, making it the first automaker to offer such technology to regular consumers in the US. The Drive Pilot technology allows drivers to engage in hands-free activities under specific conditions like heavy traffic or low speeds on approved freeways. While other companies like Tesla are at level 2 autonomy, Mercedes's level 3 technology represents a significant step toward more advanced autonomous driving capabilities, with plans to develop level 4 autonomy by 2030. Also in autonomy related news, Mixed Feelings as B.C. Bans Self-Driving Vehicles on its Roads and Inside the AI ‘Revolution’ Powering Europe’s Autonomous Vehicle Startups.
Tesla Ditches EV Inventory Price Discounts as Elon Musk Moves to ‘Streamline’ Sales and Delivery. Tesla has stopped offering discounts on its EV lineup as part of CEO Elon Musk's plan to streamline sales and delivery. This decision comes after Musk mentioned inefficiencies in Tesla's operations as well as lay offs of thousands of employees due to poor financial performance. Tesla's margins have seen compression, prompting a shift in strategy towards focusing on improving delivery efficiency and potentially launching new products like a robotaxi. These developments also come alongside multiple departures of high-profile executives. In more Tesla news, Tesla Recalls Cybertrucks Over Accelerator Crash Risk.
The Future of Supply Chain 🎙️
Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A 💸
The Folklore Raises $3.4M in Seed Funding. The Folklore is a B2B marketplace and wholesale management software for the fashion industry. Benchstrength led the round along with participation from existing investors Slauson & Co., Techstars and Black Tech Nation Ventures.
Diagon Raises $5.1M in Seed Funding. Diagon is an equipment sourcing and procurement platform. The capital will be used to expand the team as it continues with initial pilots inflight. Westly Group led the round with participation from Valia Ventures, Techstars, Foster Ventures, and others.
RIVET Raises $6M in Funding. RIVET is a construction workforce management and labor operations platform for contracting businesses. Brick & Mortar Ventures led the round with participation from defy.vc, Augment Ventures, Detroit Venture Partners, Michigan Rise and angel investors.
AIPERIA Raises €7.5M in Series A Funding. AIPERIA is a food inventory management startup using AI to enable sustainable food supply chains. ETF Partners and LLBW VC co-led the round alongside participation from Earlybird Venture Capital.
Swtch Energy Raises $27.2M in Series B Funding. Swtch Energy is a EV charging and management solution for multi-tenant buildings. The new funding will be used to leverage ML and AI, expand integrations, and further scale charger deployments. Blue Earth Capital led the round, along with participation from Alantra’s Energy Transition Fund, Klima, GIGA Investments Corp, and Active Impact Investments.
UniUni Raises $50M in Series C Funding. UniUni is a Canada-based eComm last-mile logistics provider. The funding will be used to continue building out the tech stack, grow the network of sorting centers, and expand delivery coverage across the US. DCM led the round.
Skyports Raises £88.6M in Series C Funding. Skyports is a London-based startup that owns and operates vertiport infrastructure and electronic drone delivery. The capital will be used to build out its vertiports in Dubai and launch additional drone delivery services. Funding came from ACS’s Iridium Concesiones de Infraestructuras and Groupe ADP.
Flink Raises $106M in Funding. Flink is a German grocery delivery startup. The round was led by the company’s existing investors: Rewe Group, Northzone, and Cherry Ventures.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Business Development Representative at Verusen in Atlanta, GA.
DevOps Engineer at Skydropx in Monterrey, Mexico (remote).
Internship, AI Research Team at Gatik in Mountain View, CA.