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 💭
Dynamo is at RILA LINK 2020 this week in Dallas to present the Startup Innovation Awards. We’re excited to catch up on the latest and greatest in retail and eCommerce supply chains.
We continue our travels next week and are headed to Los Angeles for TPM/El Dorado finishing with a stop in Chicago for the M25 Summit. Give us a shout if you want to meet up!
We Are Dynamo,
Santosh, Ted, Barry, and Jon
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Supply Chain 📦
📊MIT Sloan: Supply Chain 2020 Special Report. This four-part report details advances regarding inter-supplier cybersecurity, supply chain blindspots, blockchain, and visibility. Most companies are still lagging far behind with respect to visibility — 54% of companies surveyed had no visibility into their supply chain.
Four-Story Bronx Warehouse With Its Own Rail Link. Turnbridge Equities expects to break ground on this multistory distribution center in the fall. The thesis behind the facility is to address trucking costs and traffic congestion associated with the e-commerce boom. Speaking of warehouses, Tiny Warehouses to Solve Big City Logistics, Where VCs Are Investing in Warehouse Robotics.
Data Reveals Depth of China Cargo Collapse. Based on Cargometric’s data, imports fell 27% between Feb. 7 and Feb. 17, driven mainly by dry bulk declines. At the same time, exports took a nosedive of 60%, primarily caused by a downswing in container volume. American companies are starting to see the effects, Apple is the First Major US Company to Say It Won’t Meet Revenue Projections Due to Coronavirus Outbreak. Also, Deutsche Post Stops Sending Packages to China.
🌟Canadian Railroad Blockades Threaten Country’s Productivity. Protestors against a proposed natural-gas pipeline continue the two-week blockade of Canadian railways, sending supply chains into disarray. Freight rates for trucking alternatives have increased by 20% since the protests began. Economists say the stoppages threaten to shave 0.1% to 0.3% from Canada’s economic output this month.
📊Deloitte: The Future of the Movement of Goods. Deloitte reports on how three cooperating factors will drive forward the supply chains of tomorrow: 1) harmonizing data for holistic decision making, 2) connected transparency across networks, and 3) intelligent allocation of automation to tasks. At the intersection of these three, supply chains become increasingly proactive, automated, and bespoke. To dive more into the problems faced by today’s supply chain managers, Report: "In-Transit” Once Again the Supply Chain’s Weak Link.
Food-Delivery Firms Put Mergers & IPOs on the Menu. As the business of food delivery continues to flounder, DoorDash, Postmates, and Uber Eats each discussed merging in various capacities last year. Food delivery is expected to keep growing by 5.1% annually over the next five years, but the poor unit economics remain unsolved. More on the tribulations of food delivery, Why Restaurants are Rejecting Third-Party Delivery.
Amazon Axes Delivery Partners in US. Amazon is severing ties with small delivery firms around the country — putting at least 1,300 drivers out of work. An Amazon spokeswoman cited, “some of these companies have not met our bar for safety, performance, or working conditions, and we’re in the process of exiting them from the program.” Elsewhere in last-mile delivery, Data-Savvy Tech Quells Missed Deliveries.
McKinsey Report: Air-Mobility Solutions. McKinsey dives into the cutting edge technologies that will enable unmanned-traffic-management systems, the challenges involved, and why streamlining cooperation between different stakeholders will be critical in expediting time to market while being socially responsible.
Mobility 🚗
Jaguar Land Rover Unveils ‘Autonomy Ready’ Electric Shuttle Concept. Jaguar unveiled a concept shuttle dubbed “Project Vector” that it hopes to begin testing on the road by 2021. The vehicle is four meters long, with a motor and battery pack built into a flat floor. In other lofty vehicle announcements, Nikola Motors' Badger Truck Uses Batteries and Hydrogen to Promise 600-Mile Range.
📊Report: Electric Scooter Riders as Safe as Cyclists on the Road. The international transport forum is urging governments to embrace the rise of micromobility. The report places emphasis on separating light and heavy vehicle interaction, citing that 80% of fatalities occur as a result of this. On the topic of micromobility, Charlotte Takes E-Scooter Data for a Test Ride.
🌟The Ride-Hail Utopia That Got Stuck in Traffic. Travis Kalanick once said, “if every car in San Francisco was Ubered there would be no traffic.” Today, a mounting collection of studies indicate otherwise, showing that Uber and Lyft have pulled people away from mass transit and that the apps add to the overall amount of driving in the US. Another report found that ride-hailing vehicles are driving without passengers 39% of the time. In the trenches, Uber vs. Lyft: Who Tops in the Battle of U.S. Rideshare Companies.
Green Transport Set to Overtake Cars in World's Major Cities by 2030. Private car trips will drop by 10% on average by 2030 to make up less than half of all city journies. Trips made by means of public transport, bicycle, or on foot will all rise to reach a combined 49%. Elsewhere on the green front, Hyundai Expands Partnership With US to Support Further Exploration of Hydrogen Fuel Cell Technologies, LA Fire Department Has Locked in Order for $1.2M Electric Fire Truck
The Danger Is Growing For Germany's Auto Industry. The German auto sector is expected to cut nearly a tenth of its 830,000 jobs in the next decade. Like a 21st century rendition of 1970s Detroit, government officials fear that the toll will be higher as EVs require less assembly work than combustion engine vehicles. Speaking of problems in Detroit, General Motors Is Retreating From Australia, New Zealand, and Thailand.
Fiat Chrysler Plans to Launch a Robot Taxi Service in China. Fiat Chrysler is collaborating with Chinese startup AutoX to deploy robot taxis in Shenzen and Shanghai in H1 2020. AutoX says it will integrate its self-driving hardware and software in a fleet of Chrysler Pacifica minivans — the same vehicle of choice for Waymo. On the road ahead for driverless vehicles, House Panel on the Future of Self-Driving Cars.
With the 737 Max Grounded, Airbus Can’t Build Planes Fast Enough. With its rival in crisis, Airbus supplied 483 more planes than Boeing in 2019, the biggest margin in company history. Industry experts estimate that Airbus could one day deliver 60% to 65% of single-aisle planes, which are the bulk of profits for both players. Related, McKinsey Interview: The Future of Air Travel.
Tesla Teardown Finds Electronics 6 Years Ahead of Toyota and VW. While Tesla’s vehicle sales are still a fraction of major OEMs, the company is far ahead when it comes to its drive computers. One stunned engineer from a major Japanese automaker examined the computer and declared, "we cannot do it."More from Tesla and Elon, Tesla Ordered by German Court to Stop Cutting Down Trees for Gigafactory, Tesla in Talks to Use CATL's Cobalt-Free Batteries in China-Made Cars, and Elon Musk's Boring Company Quietly Deploys Its Custom-Designed Tunneling Machine.
Fundraises, M&A, Talent 💸
Swiggy Raises $113M Led by Existing Investor Naspers. The round follows rival Zomato’s acquisition of Uber Eats India. As India’s food delivery giant, Swiggy looks to use the new funds to scale its delivery network and expand into other verticals in addition to food.
Volocopter Extends Series C to €87M Led by DB Schenker. Total funding for the electric vertical take-off and landing (eVTOL) aircraft maker surpasses $132M. The latest injection will support the development of the cargo-carrying version of its aircraft.
Outrider Announces $53M in Seed and Series A Funding. Emerging from stealth, Outrider announces rounds led by NEA and 8VC, respectively. The Colorado-based startup aims to bring autonomy to dockyards, building electric vehicles that can remotely conduct trailer movements at loading docks. Big congrats to Andrew and team on the raise!
Tier Adds $40M to Its Series B from RTP Global and Novator. The mix of equity and debt financing brings the total round size to more than $100M. The Berlin-based e-scooter rentals startup plans to invest the additional capital into R&D and M&A activities.
HungryPanda Bags $20M from Felix Capital and 83North. The Asian food delivery startup caters specifically to overseas Chinese customers, accepting digital payments via WeChat Pay and Alipay. The new funds will support its launch in more than 18 cities across the US in 2020.
Concirrus Raises $20M Series B Led by AlbionVC. The London-based startup applies artificial intelligence to automotive and marine insurance and looks to use the fresh funding for expansion in the US and Asia.
SOCAR Announces $18M Series A Led by Eugene Private Equity and KH Energy. The South Korean car-sharing platform, which has built a strong beachhead in Malaysia, plans to use the fresh capital for new expansion throughout Asia.
Algo Raises $15M from Integrity Growth. The supply chain SaaS platform from Troy, MI leverages AI to enable automated business insights. Customers communicate with Algo's bot through natural language to increase sell-through, optimize inventory, and minimize returns. The K Fund also participated in the round.
MotoRefi Raises $8.6M Co-Led by Accomplice and Link Ventures.MotoRefi is an Arlington-based auto loan refinance platform. The company plans to scale up its platform with the funds. Motley Fool Ventures, CMFG Ventures, and Gaingels also participated.
Peach Raises $5M from Madrona Venture Group and Vulcan Capital. Bouncing back from staff cuts two years ago, the food delivery startup raises new funds from existing investors. Based in Seattle, the company focuses particularly on lunch orders to office buildings.
Electriphi Raises $3.5M in Seed Funding. Leading the round were Wireframe Ventures, the Urban Innovation Fund, and Blackhorn Ventures. The San Francisco-based company provides electric vehicle fleet monitoring and charging management, which has gained early traction in school districts pursuing electrification.
Lyft Acquires Digital Advertising Startup Halo Cars. The 2-year-old company enables ridehail drivers to make money via displays mounted atop their cars. Lyft has yet to comment on the terms of the deal.
Maersk Acquires Performance Team for $545M. The Danish shipping group reaches agreement to acquire the US-based warehousing and distribution company as part of its plan to customize its end-to-end supply chain solutions. Specializing in B2B and B2C distribution, Performance Team has 24 warehousing sites and reported revenue of $525 million in 2019.
Company Building 🛠️
Common Error in Sales Planning. “Look at the data. Newer AEs may need longer ramp periods (which of course costs more in burn), but may yield better quota attainment later on. The greater the contract value, the greater the likelihood of longer sales processes typical of enterprises, the greater the chances of this phenomenon.”
Mastering Difficult Conversations. No one likes to have difficult conversations (sharing feedback, dealing with bad behavior, or having to say no) but this four-point framework can help CEOs and other leaders navigate these conversations.
How to Win at SMB SaaS. Dynamo co-investor, Pat Mathieson at Toba shares some perspective on tackling sales in SMB. Many of these perspectives are relevant to the supply chain given the fragmentation and relatively low level of technology penetration in select opportunity areas.
Who's Hiring? 👩💻
Simulation Software Engineer at Gatik AI in Toronto, ON.
Talent Acquisition Lead at Skupos in Denver, CO.
Director of Operations at Token Transit in San Francisco, CO.
Check out other jobs at Dynamo portfolio companies.
💥 Seen any interesting startups or have any tips for the Dispatch? 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.