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 💭
As the events unfold in Ukraine, our thoughts are with those impacted. We’re proud to see the broader Dynamo family step up to support. Employees at Backbone AI are offering help while Sennder is mobilizing to move supplies en mass to the impacted areas.
Shout out to Kyle, Jake, and Michael for introductions to brilliant new founders, corporates, and investors.
We Are Dynamo,
Clay, Santosh, Jon, and the rest of the Dynamo team
Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
Walmart's Third-Party Fulfillment Business Grew GMV By 500% In 2021. Walmart expects robust growth to continue after launching the service for its marketplace sellers "from scratch" roughly two years ago. Moreover, many sellers using WFS experienced 50% sales growth for items, while the program had a 90% retention rate helped in part by Walmart's Preferred Carrier Program, launched last year and which saves sellers on inbound transportation costs. Besides Leveraging Its Stores As Part Of Its Last-Mile Strategy and increasing pickup and delivery capacity by 20% last year, Walmart plans to expand capacity by an additional 35% in 2022. On more news in the space, Kroger Expands Fulfillment Network Offering Fast Delivery and Target Plans Logistics Overhaul For 2022.
Disruption Forcing US Importers To Take Greater Control Of Landside Logistics. Shippers have embraced new inland distribution points during the COVID pandemic such as Salt Lake City, Las Vegas, and Phoenix. The number of IPI containers moving intact out of California, Nevada, and Arizona fell 30& y/y in 4Q21, while IPI volume out of the Pacific Northwest dropped 28% y/y. Meanwhile, surface transportation providers have been pushing back in a similar way against freight, resulting in US importers of Asian-made goods seeing landside costs within service contracts rise by at least 25%, as ocean carriers consolidate international rail flows through larger ports. Recent figures suggest The Supply Chain Is Not Getting Better, maintaining a historic growth for Supply Chain Consulting.
Alphabet’s Wing Drones Hit 200K Deliveries As It Announces Supermarket Partnership. The number, which excludes test flights, doubled in 6 months. The company announced a commercial partnership with Coles, one of Australia’s leading supermarket chains. The deal finds Wing delivering 250 different items, from foodstuffs to healthcare products and toiletries. On the other hand, Amazon’s Prime Air leaves questions around the viability of the delivery method. On more autonomous news, FMCSA Relaxes Rules For Truck Driver-Assist Devices and Self-Driving Trucks Start to Propel Land Rush Near Major Cities.
The World’s Busiest Shipping Ports Are Yet To Reopen. Chinese ports are yet to reopen following Chinese New Year celebrations and the ongoing Russia-Ukraine conflict. As a result of these issues, Australians can expect further shipping delays potentially lasting for months as well as increased postage and insurance costs. Considering China’s Massive Container Port Business was already operating at a lower capacity than usual due to shortages, authorities have reported more than 66% of staff are predicting shipping ports will be affected. On the other side of the world, Southeast US Ports Ink Deal For Revamped Chassis Pool.
Logistics Economy Grew In February. Logistics continued its strong rate of expansion in February, fueled by demand for warehousing and transportation services, rising prices, and high inventory levels. The industry saw its 13th straight month as LMI rose to 75.2, the second-highest reading in the index’s six-year history and well above the 50-point mark indicating expansion across the industry. Managers surveyed said they expect current conditions to hold, as well as capacity to remain tight, especially in warehousing, and industry costs and prices to remain high. On the logistics employment front, read about UK’s Labor Shortage In Warehouse Workers and Maintained Momentum In Trucking Jobs.
Air Capacity Plummets As Carriers Mull Halting Operations To Europe. Asian airlines are contemplating stopping operations to the UK and Europe following the US ban on Russian aircraft. Extra fuel has to be carried due to European carriers avoiding Russian airspace, lowering cargo payloads and driving expectations of heightened demand for sea-air services. In addition, forwarders are struggling to find capacity and are wary of booking when flights may be canceled as carriers are now beginning to implement war surcharges. So far, FedEx Reported An Increase In Shipping Costs and Lufthansa Cargo Sees 10% Capacity Cut Due To Russia Flight Detours.
🌟How The Ukraine - Russia Conflict Could Challenge Supply Chains. A kinetic conflict in Ukraine, combined with sanctions against Russia by the international community, could cause both physical disturbances to supply chains as well as a reduced ability for international buyers to transact. For reference, the most significant exports from Russia in 2021 were crude and refined oil (37% of total exports), natural gas (13%), and iron/steel products (6.6%). On the other hand, grains and beans account for 35% of Ukraine's exports while iron and steel represent 26%. For more on how the conflict between Russia and Ukraine could impact supply chains, see the Impact On International Airfreight Industry.
Mobility 🚗
VW Halting EV Production This Week Amid Ukraine Supply Issues. The automaker industry has suffered yet another supply shock as key production components have been unable to be shipped from Ukraine. Production of the Audi, VW, and Cupra EVs will be impacted. This amount of concentrated supply shocks will undoubtedly have unforeseen impacts on the long-term supply chains for the industry. For related news, Tesla Offers Free Supercharging Around Ukraine For People Fleeing The Country and Nickel Price Spike During Russia-Ukraine Conflict Could Drive Up EV Costs.
Waymo Gets Permission To Charge Fare And Operate 24/7 In San Francisco. The California Public Utilities Commission gave Waymo a deployment permit to allow it to fully begin operations in San Francisco. They are allowed to operate their AVs at any time up to 65 miles per hour. This is a great opportunity for stakeholders to gain a large sample of information on this model both from a corporate and regulatory POV. For the latest CAV information, check out 5G-Powered Connected Traffic Signals Deployed In Georgia and Consumers Don’t Trust Fully Autonomous Vehicle Technology, New Study Finds.
🌟Ford Creates Separate EV, Gas-Engine Divisions in Major Overhaul. Ford is planning on keeping the divisions in-house; the main differentiators will be differences in profit-loss statements and leadership structure. Ford says the new layout could cut $3B in annual costs from the gasoline side of the business. This move illuminates the potential tradeoffs and challenges of being both a traditional and EV-centered company. In related news, check out BMW Unveils New AR Collaboration With Google and Ford Tries to Create an Inner Tesla.
Volvo Is Testing Wireless EV Charging Tech In Sweden. Volvo is trying to test alternative charging options on a small fleet of EVs that they plan on using as taxis. The plan is to embed charging systems into the ground through a partnership with Momentum Dynamics who also partnered with Jaguar to run similar experiments in Norway. For related information, consider reading Musk On Affordable Electric Truck: Extremely Hard For Tesla, Near Impossible For Others and The Cold Hard Truth About Electric Vehicles In Winter.
Toyota Shuts Japan Plants for One Day After Supplier’s Computer Virus. On Tuesday, Toyota shut down all of its factories in Japan after one of its suppliers suffered a computer-virus attack. Attacks like these are a serious worry for those promoting the continued digitization and automation of our supply chain and a serious vulnerability yet to be solved. This and other production problems have led Toyota to lower its production forecast by 500K. In other news, These Are All The Automakers That Have Pulled Out Russian Operations.
How Russia's Invasion Of Ukraine Could Hurt Travel's Recovery. Global oil prices continue to rise as Russian exports drop significantly, limiting global travel in the near term. Outside of increased cost, there are also safety risks for passenger flights whose routes go through Ukraine. The supply drop might hurt even more as a refugee crisis happens, causing various modes of transport to see an increase in cost. There are also variables for forecasters to consider regarding how the spread of the virus might be impacted by these shifts in Travel. In related news, Gas Prices Surge Overnight -- Biggest Jump Since Hurricane Katrina and Will High Gas Prices Supercharge Electric Vehicle Sales.
Alaska Airlines Becomes Latest US Carrier To Cut Ties With Russian Partners. Alaska Airlines is suspending their partnership with the Russian airline S7. 17.8M passengers traveled with S7 airlines, putting a lot of pressure on their travel volume as various airlines and suppliers are canceling or suspending their partnerships. The United States has also shut down its airspace to Russian airlines, increasingly isolating and internalizing Russian travel. For other news, check out Airbus & Boeing Cuts Set To Heavily Impact Russian Airline Operations.
The Future of Mobility Is At Our Doorstep. McKinsey has released a report which gives a high-level overview of investment trends and projections regarding CAVs, EVs, and general mobility trends. Some of the key takeaways include potential hurdles and avenues through which stakeholders can successfully navigate the path to the future of mobility. The report also emphasizes the importance of China in a potential mobility revolution.
Fundraises and M&A 💸
LOBB Logistics Raises $1.1M Pre-series A. LOBB is a digital freight forwarder based in India. The round was led by angel investors Byju Pillai, CEO of Inflow Technologies, and Gopal Kaul. The funds will be used to scale the business and expand its presence across India.
PrettyDamnQuick Raises $6M Led By TLV Partners. PrettyDamnQuick is a logistics management platform that helps eComm businesses on Shopify grow their sales. They currently have a headcount of 30 and plans on doubling that number within the next six months. The funds will also enable the company to expand its platform into the US market.
Bex Technologies Raises €5.6M Led By Scania Growth Capital. Bex Technologies is a last-mile logistics platform for the construction industry. With the help of the platform, building materials and construction equipment can be delivered within two hours. The funds will be used for expanding its logistics network and market.
Convelio Raises €9M Series A. Convelio is a France-based digital freight forwarder focused on fine-art shipping. Investors include Acton Capital and Global Founders Capital. The funds will be used to expand global coverage and explore new segments in the logistics space.
Prozo Distribution Raises $10M Led By Sixth Sense Ventures. Prozo provides supply chain, warehousing, and logistics services to D2C brands. The company was founded in 2014 by Dr. Ashvini Jakhar, a former Lieutenant commander with the Indian Navy and ex-McKinsey & Company consultant. The funds will be used to expand its tech capability and market coverage across India.
Coreshell Raises $12M Series A. Coreshell builds technology proven to extend the capacity of lithium-ion batteries by +30%. The round was led by sustainable energy VCs including Trousdale Ventures, Industry Ventures, and Helios Capital Ventures. The funds will be used to accelerate commercialization and meet demand.
Locofast Raises $15M Co-led By Stellaris Venture Partners and Chiratae Ventures. Locofast is a B2B textile platform that connects producers and suppliers with brands and exporters. It is involved in the supply chain of more than 700 brands in the apparel industry, including Zara and H&M. The funds will be used to boost technology, expand India's footprint, and roll out three new product grades with a focus to enable SMEs to scale their business.
Linear Labs Raises $17M Series A. Linear Lab produces smart electric motors that are IoT connected with machine learning intelligence software. The round was led by THRC Investments and Folsom Point Equity. The funds will be used to further support manufacturing capabilities, supply chain infrastructure, and robotics engineering.
Starship Raises Additional $42M. Starship builds autonomous delivery robots that travel on the sidewalk. This latest infusion brings the total raised to over $100M in the last month. The round was co-led by NordicNinja and Taavet+Sten.
99minutos Raises $82M Led By Oak HC/FT. 99minutos provides a last-mile delivery service for eComm companies across LATAM. They are currently working with over 120k B2B customers and have seen revenue grow 3x y/y. The funds will be used to scale new business models, expand into new geographic areas within LATAM, and initiate new sustainability projects.
Dian Xiaomi Raises $100M Co-led by Tiger Global and Huaxing Growth Capital. Dian Xiami provides ERP software to Chinese cross-border sellers. The company provides services to 120K merchants with annual transaction volume hitting over $48B. The funds will be used for recruiting talent, product development, R&D, and global expansion.
Jumeng Gongjian Raises $100M Led By Fortuna Capital. Jumeng offers small-load logistics services to corporations through the integration of logistics parks, inter-city networks, and information systems. It has connected with 190+ logistics parks and built a network of 10K+ routes. The funds will be used to upgrade operations and technology.
Volocopter Raises $170M Led By WP Investments. Volocopter is a German urban air mobility company. In addition to the capital, Volocopter and WP Investments have signed a joint venture term sheet that ensures electric air taxi services in South Korean skies are on the horizon. The funds will be used to further assist the company's certification process and drive global commercial launch plans.
Inceptio Technology Raises $188M Co-led By Sequoia China and Legend Capital. Inceptio Technology collaborates with OEMs to develop China’s first driverless heavy-duty trucks. Additional investors include Hong Kong billionaire Henry Cheng and his family’s Chow Tai Fook Enterprises, Meituan, Fidelity-backed Eight Roads, and NIO Capital. The funds will be used for mass-producing driverless trucks, converting these vehicles from running on gas to electricity, and developing its proprietary full-stack autonomous driving system.
Bosch Acquires Atlatec. Bosch, a leading global supplier of technology and services has acquired Atlatec, a company that creates high-resolution 3D maps for Level 3 and 4 autonomous driving. The acquisition of Altatech makes Bosch the only company that can offer its customers all the necessary building blocks of automated driving. The terms of the deal were not disclosed.
DECKED Acquires CargoGlide. DECKED, a provider of storage and organization products for trucks has acquired CargoGlide, a provider of sliding bed platforms that allow users to easily access gear from their truck bed. The terms of the deal were not disclosed.
DoorDash Acquires Bbot. DoorDash, a last-mile delivery platform has entered a definitive agreement to acquire Bbot, a restaurant and hospitality tech startup. The acquisition of Bbot enables Doordash to offer merchants more solutions for their in-store and online channels, including in-store digital ordering and payments. The terms of the deal were not disclosed.
Modaxo Acquires Pcentra. Mobility tech organization Modaxo has acquired Pcentra, a provider of cloud-based smart ticketing technology. Pcentra will maintain its brand and autonomy while benefiting from investment, support, coaching, best practices, and peer learning made available by Modaxo. The terms of the deal were not disclosed.
Modaxo Acquires Transloc. Mobility tech organization Modaxo has acquired TransLoc, a provider of microtransit, on-demand services, and fixed-route transportation solutions. TransLoc will maintain its brand and autonomy while benefiting from investment, support, coaching, best practices, and peer learning made available by Modaxo. The terms of the deal were not disclosed.
Tier Mobility Acquires Spin From Ford. Tier Mobility, a Berlin-based micromobility operator, is marking its North American entry by acquiring Spin. Tier will acquire all of Spin’s 50K eScooters and eBikes, bringing the German company’s total fleet to 300K. The terms of the deal were not disclosed.
Company Building 🛠️
Waitlist Conversions. A handy table that can help guide conversion rates if you have a waitlist dynamic in selling your product.
Picking a Product Mentor. As we work with our portfolio, we find the need for mentorship or advisorship from people in the immediate and broader network. This is a great strawman for finding a product mentor - note the point on notoriety. Some of the best people are heads down - being famous doesn’t mean someone is excellent.
The Ukraine Crisis Has People Rattled. Here's How to Talk About Fear at Work. A four-part approach for leaders to have conversations about the crisis in Ukraine and uphold an empathetic and supportive workplace.
Who's Hiring? 👩💻
Content Marketing Specialist at SVT Robotics in Norfolk, VA (remote ok).
Senior UX Designer at Amitruck in Nairobi, Kenya.
Head of Analytics at Nextmv in Philadelphia, PA (remote ok).
💥 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.