Dynamo Dispatch (02/01/21)
Issue 137 | Verusen, Social Auto Transport, Overhaul
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 💭
We’re in the early days of putting together a panel of supply chain and supply chain technology executives. If you’re in our readership and wish to be part of the effort, please reach out.
Thanks for Richard and Jason for the recent intros!
We Are Dynamo,
Santosh, Ted, Barry, Jon, Rachel, and Emily
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Supply Chain 📦
UPS Closes Curtain on LTL Journey. UPS Freight, acquired by Canadian-based TFI International, provided the bundling of LTL and small-package services allowing them to offer low LTL rates in return for shippers’ small-package business. Not only is this less popular today than it was more than a decade ago when it started, but the segment was in dier need of digitization. The sale, which will close during the second quarter, is expected to boost UPS’s overall operating margin. With regards to M&A, XPO Says More Acquisitions Are Possible as DB Schenker Prepares to Enter US Trucking Market.
UPS Sees Federal Funding Needed To Assist Electric Last-Mile Delivery. UPS believes that last-mile delivery will require a jumpstart in funding from the next infrastructure package. If funding is not provided, they are concerned that the US could miss the opportunity to be a leader in electric technology. Related, Arrival Attempts to Disrupt the Van Market with electric bus and van alternatives. UPS has a standing order of 10K Arrival electric vans for delivery drivers.
Navistar and GM Cooperate on Zero-Emission Longhaul Trucks. Navistar intends to produce zero-emission long-haul trucks using fuel cell systems supplied by GM. An international RH Series FCEV model is planned to be commercially available in 2024. Longtime Navitar customer, JB Hunt, will deploy some of the trucks in a pilot program beginning next year. Related, President Biden Commits to Replacing Federal Fleet with EVs.
GM Workers Giving Positive Feedback On Exoskeleton Use. Certain GM workers have been wearing the SuitX Modular Agile eXoskeleton (SAM), for 4-18 months as a part of a pilot program intended to evaluate the technology for more widespread use. The exoskeleton has four separate parts for the shoulder, back, and legs and uses springs and clutches that work in parallel with human joints to provide extra strength and reduce the muscle activity needed for heavy lifting tasks. In the realm of automation, Robot Orders +3.5% in 2020 as Non-Automotive Sales Surged.
Walmart Launches Local Fulfillment Center Effort. We’ve long discussed the concept of leveraging brick and mortar and Walmart is now leaning into this opportunity with the ramp of its LFC capability that is “a compact, modular warehouse built within, or added to, a store. In addition to fresh and frozen items, LFCs can store thousands of the items we know customers want most, from consumables to electronics.” Also, Storage Units Support Increase in Retail Pickup, Starship Robots Celebrate 1M Deliveries while Coke, DroneUp, and Walmart Team Up on Residential Delivery Launch.
Peak Season Recap from DHL eCommerce North America. DHL believes that the consumer behavior changes that the pandemic forced are not temporary. Instead, they create a new baseline in terms of eComm or shippers and such surge volumes need to be a part of the total business plan. Also, Kraft Heinz Cleans Up its Packaging.
“Madness” of ex-Asia Container Rates Drives Unboxing of Containerised Cargo. To combat the ongoing spike in container rates, shippers are turning to secondary ports and shortsea shipping, the movement of cargo by sea along the coast without crossing an ocean. This is expected to create new opportunities for breakbulk, multipurpose vessels, and roll-on-roll-off carriers. Related, Asia Import Growth in 2020 Concentrated in Largest US Ports and Changing Air Cargo Market Drives Forwarders Back to the Operational Drawing Board.
Uber Freight Rolls out Free Rate-Locking Tool. If a shipper wants to move a load on a designated route, it traditionally had the options to either secure coverage on the spot or spend long periods negotiating with brokers and carriers to get a short term contract. The rate locking tool provides instant pricing on recurring lanes and allows secure priority coverage with Uber Freight ahead of tight markets. Also, Dynamo portfolio company, Stord launches Cloud Supply Chain product.
Mobility 🚗
Lime Plans to Add Moped-Sharing to Scooter and Bike Services. Lime continues to tempt users to abandon their cars (and capture some of that spend) by introducing mopeds to some fleets starting this spring. The company will launch 600 mopeds in Washington DC in March with Paris, France to follow shortly thereafter. The Capital already adopted the use of mopeds from the competitor Revel in 2019 and has embraced them as a solution to lowering traffic congestion and carbon emissions. Cities around the world are adapting to a reduced-car culture, as Spain Plans to Make Drivers Slow Down When Overtaking Cyclists.
GM Eliminating Tailpipe Emissions by 2035, Completely Carbon Neutral by 2040. The automaker aims to become a leader in carbon neutrality across all facets of its business. Along with eliminating tailpipe emissions, GM is joining governments and other companies around the globe to continue their path to an all-electric future. Relating to the green-conscious automaker, Death of Diesel Grows More Certain as Major Production Facility Turns to EVs and Nissan Flips the Switch on Electric Reboot.
Companies With Science-Based Climate Goals Cut Emissions Faster. Science-Based Targets initiative, SBTi, helps more than 1K companies translate the Paris Agreement’s aim of keeping global warming under 1.5°C. Goals for net-zero emissions are proving to be more slow-moving than some companies planned. Their latest analysis excludes emissions that are results of activities from assets tied to a company’s supply chain. Most companies only began setting targets to cut the supply chain-related emissions in the last 2 years and have not seen significant change. These efforts to become climate-conscious come as Hydrogen Aims for Cost Parity with Oil.
Energy, Transport, Sustainability – 10 Predictions For 2021. It’s forecasted that 2021 will be a breakout year for passenger EVs with 4.4M passenger EVs sold worldwide. There are now over 10M EVs on the road globally, and the adoption will continue to accelerate as generous subsidies, tighter CO2 regulations, and multiple all-EV models provide consumers with options.
The 'COVID Aristocracy' Have Grown Comfortable Working from Home. The luxury of working from home has benefited the “COVID aristocracy,” leaving the rest to answer the question, “what safe and affordable commuting options do I have?”. Dynamo portfolio company CEO, Sam Ryan answers this with his startup Zeelo, a shared bus company that carries 100K commuters each month. Ryan says: “We have done a lot of analysis on how a bus fills up and everybody on every single attempt does their best not to sit next to somebody until they really have to”. Other solutions are presenting themselves, as Uber Pitches Ride-Sharing As a Public Transit Mode.
Potential Auto-Recovery After Chip Shortages. As automakers are desperate for chips, producers may allocate more capacity to them in the first quarter, as it is a low season for smartphones and other technology. The auto industry is becoming increasingly reliant on chips, with around 40% of a vehicle's cost coming from electronics and the average car set to carry around $600 of semiconductors by next year. Related, Toyota Passes VW as World's Top-Selling Automaker.
Tesla Unveils Redesigned Model S. Tesla has announced the first major redesign of the Model S since it launched in 2012. This new version, shipping in March, has a refreshed exterior, simplified interior, and the option for more power that lets the car travel at least 520mi and go from 0 to 60mph in under 2 secs. With the increase in EVs produced and on the road, it’s time to ask Has the Day of the Software-Defined Car Arrived?
Fundraises and M&A 💸
💥Verusen Raises $8M in Series A Led by Forte Ventures and Flyover Capital. Atlanta, GA-based Verusen leverages AI to build and connect the supply chain. They will use this funding to further their R&D and ramp their product and sales efforts.
Social Auto Transport Raises $1.5M in Seed Funding Led by Overline. Social Auto Transportation is a gig economy platform dedicated to helping businesses relocate vehicles. The Richmond-based company plans to use the money to expand its business into new cities.
International Compliance Workshop Raises $5.75M in Series A Led by Infinity Ventures. ICW is a Hong Kong-based supply chain compliance management and B2B sourcing platform. It plans to use the investment to further enhance the technological capabilities of its holistic compliance management system and product testing platform.
Tealbook Raises $14.4M in Series A Led by TP Global. Tealbook is a Toronto-based supplier data platform provider. The company intends to use the funds to support its continued innovation, and drive sales and marketing initiatives further to expand the company globally.
Starship Technologies Raises $17M. The autonomous bot company has expanded its fleet five-fold since COVID hit Europe and North American markets. Starship plans to expand to 100 universities by late summer 2021.
Overhaul Raises $17.5M Led by Edison Partners. The Austin-based supply chain tech and compliance startup will use this funding to continue to grow their company by expanding their North America team, new European headquarters in Ireland, and reach into other key markets.
Airspace Raises $38M in Series C Led by Telstra Ventures. Airspace, a Carlsbad, California-based startup, focuses on time-critical logistics. The company intends to use the funds to grow its global network of drivers along with expanding its suite of service offerings.
FreeWire Technologies Raises $50M in Series C Led by Riverstone. Freewire, the EV charging, and power solutions provider will use the cash to expand EV charging infrastructure and aims to install more than 2.5K ultrafast charging stations by 2025.
ShipMonk Raises $65M. Shipmonk provides order fulfillment and inventory management services to e-commerce companies. The new financing will accelerate their international expansion, expand carrier partnerships, increase hiring and enhance their technology platform.
Uisee Raises $150M. The Chinese smart driving startup Uisee differentiates itself from the rest by focusing on unmanned driving rather than advanced driver-assistance systems. This new funding will allow them to focus on research and development, and promote the industry's at-scale monetization.
Wolt Raises $530M Led by Iconiq Growth. Wolt is a Helsinki-based online ordering and delivery company that began focusing on restaurants but has since grown to tackle other verticals. The finding will be used to invest more in their people, technology, and future markets.
Sila Nanotechnologies Raises $590M in Series F Led by Coatue. Sila, a Silicon Valley battery materials company, will use the funding to build a North American factory for batteries used in smartphones and automotive and plans to hire another 100 people within 2021.
Shell Agrees to Acquire Ubitricity. Shell has agreed to acquire Ubiticitu, the largest public EV charging network in the UK. This acquisition will expand Shell’s investments in the transition into cleaner fuels.
Company Building 🛠️
How Developers Buy Software. We’ve seen the rise of developer-centric software in the supply chain over the last 12 months and have made 2 investments into this category. Understanding how a developer buys software is key to building a go-to-market that in the early days feels different than traditional enterprise sales. Interestingly, we’re noticing that a critical mass of developers helps “prime the pump” for smoother enterprise sales as a startup’s name becomes well-known ahead of a purchasing decision.
The Five Flavors of ARR. “To come full circle, there’s a newer ARR metric for SaaS companies called cARR, which is contracted ARR, or the annualized value of the contracts signed but not deployed. That number is typically larger and provides a bigger number to multiply, hence a higher valuation.”
Subscription-based Pricing is Dead. We’re seeing this trend in our portfolio where business models are more aligned to usage rather than a flat subscription model. This allows a customer to keep costs low but equally, a startup still has the ability to monetize as usage increases. Some areas we’re seeing this- workflow automation, visibility data, and select instances around middleware that facilitate a transaction(s).
Who's Hiring? 👩💻
DevOps Engineer at nextmv in Philadelphia, PA.
Account Executive at SVT Robotics in Norfolk, VA (remote ok).
Supply Chain Data Analyst at Stord in Atlanta, GA.
Check out other jobs at Dynamo portfolio companies.
💥 Have you seen any interesting startups recently? Introduce us.
❤️ 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.