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
Shoutout to Mark Mwangi, founder of Amitruck, for stopping by Chattanooga this past week. Weâre thrilled you were able to hang out for a few days and experience all that Chattanooga has to offer.
And kudos to the team over at WorkHound for the recent raise! Check out the M&A section for all the juicy deets.
We Are Dynamo,
Clay, Santosh, Jon, and the rest of the Dynamo team
P.S. Itâs never too late to reach out to clay@dynamo.vc if youâre going to be attending Shoptalk next week. Donât be shy, heâd love to treat you to coffee or tacos!
Note: please add âdynamo@substack.comâ to your email client, so you donât miss future issues due to aggressive spam filters.
Supply Chain đŚ
đDisruption In The Containerized Logistics Value Chain. The COVID pandemic led to a boom in US containerized consumer goods demand, causing congestion and reducing effective container logistics capacity. Simultaneously, global container shipping rates have increased on average to four to five times their 2019 levels. Shippers have struggled to locate capacity with acute shortages and record low reliability both at sea and on land. Moreover, average container schedule delays have doubled globally and increased by six times on the Far East and North America trade from two days in 1Q20 to 12 days in 4Q21. For more news on containers, COVID Curbs Bite At Chinese Ports and Ever Forward Container Ship Stuck in Chesapeake Bay.
TuSimple Explores Sale Of China Unit After Pact With US Authorities. The autonomous trucking startup will be solely focusing on the US market following an agreement to restrict the China unit's access to data for security concerns. Founded by two veteran Chinese entrepreneurs, TuSimple employs around 500 people and holds several patents in China, and has partnered with big package delivery firms such as DHL and UPS. TuSimple's operations in China were mainly focused on transportation at ports, as China allows limited public routes for AVs to conduct road tests. On more trucking news, Electric Truck Hydropower Is A Flexible Solution In Mountainous Regions and J.B. Hunt And B Team Plan To Expand Intermodal Capacity.
Ukraineâs Vital Link In The European Supply Chain. The shutdown of trade and logistics out of Ukraine is hurting automotive production and driving up logistics and bunker costs for European logistics providers. Impacts to date include the supply of key metals, materials for semiconductors, as well as vital automotive components such as wire harnesses. Overall, there are 22 foreign companies that produce automotive parts in Ukraine at 38 factory facilities. As a result, Europeâs Car Plants Halted By Lack Of Low-Cost Ukrainian Components. Although Europe is expected to be hit the hardest, Ukraine War Is Also Expected To Hit US State Economies.
Chinaâs COVID Lockdowns Set To Further Disrupt Global Supply Chains. Cases rose to more than 120K infections nationwide this week. Although that tally is small compared with many other large countries, China has taken a zero-tolerance approach to outbreaks that calls for stringent lockdowns. Because several of the countryâs largest industrial cities are fighting outbreaks, such measures are taking a toll on the factory and transportation networks that are the backbone of Chinaâs manufacturing â and the global economy. Consequently, Shenzhenâs Cross-Border Trade Has Grounded To A Halt and China Lockdowns Disrupt Output for Toyota, VW, And Apple Suppliers.
Drone Delivery Is More Of A Lift Than You Think. Over the past three years, there have been over 660K commercial drone deliveries to customers, with more than 2K drone deliveries occurring each day worldwide. Despite not having a blanket regulatory approval, the marketâs growth is accelerating every week, with McKinsey projecting that deliveries will triple y/y to 1.5M in 2022. While the progress for drone delivery has been substantial, three catalysts are expected to determine the sectorâs trajectory going forward: regulation, public acceptance, and costs. For more news on drones use-cases within supply chains, Drone Delivery Nearer To Take-Off Following Latest FAA Recommendations and Dronamics Aims To Provide Middle-Mile Cargo Drones Coverage To All European Countries Within A Day.
No Holiday For Delivery Firms As Fuel Prices Remain Elevated. As fuel prices have surged in the US, last-mile delivery companies have been put in a precarious position. Some have tried to implement surcharges to cover the added costs, while others already had surcharges in place for this scenario. But with fuel prices doubling in some areas in less than two weeks, even surcharges are expected to take time to recoup some of that increase. Labor concerns have also surfaced for smaller delivery networks since gig drivers are changing to platforms that offer better reimbursement or higher pay. For more on surging fuel prices, Instacart Announced A Fuel Surcharge To Help Drivers Paying High Gas Prices and Doordashâs New âGas Rewardsâ Program Comes With Strings Attached.
Chinaâs Gig Workers Are Challenging Their Algorithmic Bosses. Food delivery drivers are using platformsâ data-powered systems and unofficial unions to fight unfair conditions. Companies leveraged algorithms to force couriers to work faster and more efficiently, squeezing them with tighter delivery times. Besides time constraints, reports of couriers involved in traffic accidents as they raced to make deliveries led couriers to rebel. Although China bans independent unions and labor strikes, that hasnât stopped gig workers from organizing unofficially to gain higher wages or turn the data-driven approach to performance assessment against their bosses. For more labor-related concerns in global supply chains, read about Canada And US Shippers Bracing For Possible CP Rail Strike and Amazonâs First-Ever Multistate Coordinated Work Stoppage By Warehouse Workers.
Mobility đ
EV Range Test Of Various Models Shows Up To 20% Drop In Cold Temps. One aspect EV drivers will have to adjust to is the seasonal adjustment of their vehiclesâ range. The exact amount of the shift varies across brands but thereâs a consistently significant decrease in cold temperatures. This is one more potential avenue for improvement from EV manufacturers as well as an area of caution for drivers considering the switch. For related articles, check out Porsche Increases EV Targets, Confirms 911 Hybrid Sports Car.
Public Transit Gets $3.7B To Woo Riders, Adopt Green Fleets. The money will be directed at transit agencies hurt most by the pandemic as well as those willing to transfer to green vehicles. Currently, many transit agencies are in a crisis as ridership is about 55% of where it was pre-pandemic. This is important for players in the space who are advocating for more innovative approaches to public transport; more breathing room for local agencies means they have a greater ability and willingness to take risks. For related news, Electric School Buses Are Reaching Cost Parity With Diesel, And A California District Will Deploy One Of The Largest E-Bus Fleets In The State.
Tesla Maintains Massive Lead In US Electric Car Sales. Despite massive investments from all of its competitors, Tesla has almost 70% of the total US EV market share. The only exception in this trend is Alaska, where Nissan has a slight lead. Other relevant information from the report is that California leads the country in light-duty EV registrations for the year by a wide margin. For related information on EVs, check out It's Time To Treat eBikes Like Vehicles and How This Mechanic Found A Niche Fixing Teslas And EVs.
How the War in Ukraine Could Slow the Sales of Electric Cars. The price of nickel essentially doubled in one day last week due to the potential cutoff of Russian supply. Nickel is an integral ingredient of most batteries, the average EV containing almost 80lbs of nickel. Establishing alternate supply chains will take years, meaning this surge in prices could be here for longer than expected barring an end to the conflict. In related news, check out BMW's German, UK Factories Will Return To Full Output.
US Senate Passes Resolution To End Airline Mask Rule. Although the bill is unlikely to pass the house and even less likely for Biden to sign it into law, mass transportation industry players should be paying attention to this regulatory wave. CDC advised the mandate to continue at least until April 18th. This leaves late April as a potential time period to circle if youâre wondering when the regulatory landscape could shift on the issue. In other news, check out Tire Maker Michelin Suspends Russian Operations.Â
Why Cruiseâs Self-Driving Cars Are Still In First Gear. This article details some of the many challenges facing Cruise and the industry in regards to advancing AV tech; the primary reason being the high stakes potential costs of technical costs while also being limited in their ability to train the AI through practice. The cars have to be able to deal with random edge cases and the âsocial aspectsâ of driving. The short-term solution is small to medium-sized trial runs and services being greenlit in parts of the country. For related information, consider reading The Top Five Best-Equipped Countries To Support AVâ Whoâs Leading The Self-Driving Revolution?.
US Will See 'Meaningful' AV Policy In The 2020s -US Transportation Secretary. Pete Buttigeg, US Transportation Secretary, announced Wednesday that federal policy would emphasize developing frameworks for regulating AV tech. This is good news for AV manufacturers who have been banging the table for clarity regarding the issue. This is also timely as it comes after regulators eliminated the need for AVs to have certain driving controls last week. In other news, BMW Level 3 Autonomous Driving Tech Is Coming in 2025.
đToyota, Major Chip Supplier Suspend Production Due To Earthquake In Japan. The earthquake this week in Japan is adding even more stress to global supply chains. The earthquake is expected to decrease production by 25K to 35K vehicles. Toyota announced that it would suspend operations for over half of its Japanese plants. Short-term transportation costs are getting pushed from every angle, leaving the forecast hazy on the future of auto supply chains. In related news, Renesas Suspends Semiconductor Plants In Japan After Earthquake.
Fundraises and M&A đ¸
đĽÂ WorkHound Raises $12M From Level Equity. Workhound is a platform that gathers employee feedback and establishes sentiment from across the frontline workforce. The startup focuses squarely on supply chain sectors, including logistics, warehousing, and trucking. The funds will be used to scale its platform.
ASKA BIKE Raises âŹ1.3M. ASKA is producing sustainable top-end speed pedelecs, based on a fully European supply chain. Investors include Participatiemaatschappij Vlaanderen (PMV), Bob Verbeeck (Golazo), Steven Buyse (CVC Capital Partners), Xavier Dewulf (G&V Energy Group), Stefan Tournoy (Veepee), and Mark De Smedt (Plan International). The fund will be used to roll out its bicycle.
Rabot Raises $2M Pre-seed. Rabot is a platform for warehouse operational intelligence to augment workforces in high speed and high volume environments. Investors include Newfund Capital, BootstrapLabs, Forum Ventures, and Interlace Ventures. The funds will be used to grow its team to meet increasing demands for their service.
REPOWR Raised $4.2M Led By Koch Disruptive Technologies. REPOWR is a collaborative logistics marketplace and digital-leasing platform aiming to bring visibility to underutilized transportation equipment. Additional investors include Perot Jain Alliance, and Plug and Play Venture Group. The funds will be used to expand its operations and business reach.
Loveseat Raises $7M Led By Bessemer Venture Partners. Loveseat is an online auction marketplace that offers a platform for consumers to buy local returned and overstock home goods at a discounted price. Their mission is to eliminate waste in the returns supply chain, which they estimate to be a $30B market, where between 20% and 30% of items are returned. The funds will be used to accelerate executive hiring capabilities, expand to every major market nationally, and transition to a direct-sourcing model.
Solo AVT Raises $7M Led By Trucks VC. Solo AVT wants to build electric, purpose-built heavy-duty truck platforms for autonomous freight. The startup is gearing up to finalize the design and build of its first test vehicle. The funds will also be used to grow its engineering team.
Contingent Raises $8M Led By Octopus Ventures. Contingent is a supplier insight platform that makes procurement management hassle-free and real-time. The platform is being used by procurement and supply chain teams at companies such as Monzo, Seagate, Huel, Barratt Developments, and HM Government. The funds will be used to build its range of modular SaaS applications.
Trucksters Raises âŹ8M Series A Extension. Trucksters is a digital transport operator that provides long-distance FTL trucking service through a relay model based on Optimization & AI. Investors include Kibo Ventures, Amplifier, Bonsai Partners, Axel Springer & Porsche joint venture APX, Big Sur Ventures, Metavallon VC, and The Valley VC. The funds will be used to scale its platform to help address the urgent shortage of truck drivers across Europe.
SpaceFill Raises $27M Led By NGP Capital and Maersk Growth. SpaceFill offers unlimited warehousing and freight capacities with best-in-class level of service and connectivity. The company has built a network of 1.5K warehouses that are all connected to the same software orchestrating layer. The funds will be used to hire another 80 employees to improve its platform and expand its network.
Nautilus Labs Raises $34M Co-led By Microsoft Climate Innovation Fund And M12. Natius generates faster ship routes while reducing emissions through its AI-informed recommendation software. Around 90% of traded goods are carried over the waves, and in the US alone, marine shipping is the transportation method for 53% of imports and 38% of exports. The startup partners with companies including TotalEnergies, Eastern Pacific Shipping, and Emirates Shipping Line, and recently announced the addition of London to its hubs in Singapore and Paris.
Profishop Raises $35M Led By Tiger Global. Profishop is a B2B procurement platform that offers industrial durable and consumer goods for professional users in the industrial space. The company cleared $100M in sales with 500K customers last year, and itâs on track to more than double those numbers this year. The funds will be used to scale its business and platform across Europe.
Moove Raises $105M Series A2. Moove is an African mobility fintech startup that provides vehicle financing to drivers of ride-hailing platforms like Uber and other gig networks. The round was led by Speedinvest, Left Lane Capital, and thelatest.ventures. The funds will be used to scale across seven new markets including ones in Asia, MENA, and Europe.
ââWasoko Raises $125M Co-led By Tiger Global and Avenir. Wasoko is a marketplace for distributing fast-moving consumer goods from suppliers to retailers. Since launching in 2016, Wasoko has delivered 2.5M orders to more than 50K active retail customers in its network. The funds will be used to drive geographic expansion and product offerings across Africa.
Licious Raises $150M Series F Extension. Licious is a Bengaluru-based startup that sells fresh meat, seafood, and other fresh animal protein online. The round was led by Singapore-based Amansa Capital, Kotak PE, and Axis Growth Avenues AIF â I. The startup has built a supply chain network across several Indian cities to be able to procure meat and seafood, keep them fresh and deliver within hours of the order.
Getir Raises $768M Led By Mubadala Investment Company. Getir is a Turkish on-demand delivery platform. This round puts Getir at an $11.8B valuation, making it Europeâs first grocery delivery decacorn. The funds will be used to further lead Getirâs charge as it aims to conquer and dominate its active markets.
Tracsis Acquires RailComm For $11.5M. Tracsis, a provider of software and hardware services for the transport industry acquires rail technology software and services provider, RailComm. The acquisition of RailComm enables Tracsis to extend its rail software footprint and expand its addressable markets. The acquisition comprises an initial cash payment of $11.5M, with an additional contingent consideration of up to $2.7M payable subject to RailComm achieving certain financial targets in the first full year post-acquisition.
Zebra Technologies Acquires Matrox Imaging For $875M. Barcode printing technology company, Zebra is acquiring machine vision system company, Matrox Imaging. This deal expands Zebraâs presence in the automation market.Â
Zomato Acquires Blinkit Through All-stock Deal. Food delivery firm, Zomato acquires instant delivery service, Blinkit through an all-stock deal that values Blinkit between $700M and $750M. The acquisition comes as Blinkit has been struggling to raise funds from new or most of its existing investors for several quarters.
Applied Intuition Acquires Mechanical Simulation Corporation. Applied Intuition, a simulation and software tools provider for AV development acquires Mechanical Simulation Corporation, a provider of vehicle dynamics simulation software. Through the acquisition, the two teams aim to provide the world's most accurate simulation and validation tools for advanced driver-assistance systems (ADAS) and AV development. The terms of the deal were not disclosed.
Veho Acquires QuikReturn. Veho, a technology company that facilitates next-day delivery for eComm brands acquires QuikReturn, a reverse logistics startup serving eComm brands. The acquisition further accelerates Vehoâs returns product offering as well as its geographical expansion. The terms of the deal were not disclosed.
Company Building đ ď¸
Q1 Signaling Softening in the Venture Markets. Crunchbase data suggests that both the average and median Series A raise sizes are down in Q1 to $12.6M and $10.3M, respectively vs $17.7M and $12.0M in Q4. This is corroborated by conversations with investors who are taking a more cautious approach to deploy capital for the balance of the year. We donât think this is a reason for panic since Series As but to focus on demonstrating P/M-fit and the baseline for repeatability and scalability within the business. Great businesses will always be able to raise and this softening will more so cull those businesses who have not focused on the right things for the last couple of years.
How to Collaborate with Legal Better. Regardless of role, we wholeheartedly support the approach to view legal as an advisor vs approver as well as The CEO Test. This helps reduce frustration and drive timely and meaningful outcomes with your legal counterpart.
Designing Defaults. âWhat looks like skill is often just consistency. While you canât snap your fingers and become more talented, you can create your own talent. Consistency creates talent. And you wonât be consistent if you only do things when you feel like it.â
Who's Hiring? đŠâđť
Front End Engineer at Stord in Atlanta, GA (remote ok).
Account Manager at Milk Moovement in Fresno, CA.
Business Analyst at Amitruck in Nairobi, Kenya.
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.