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 💭
Did you miss our latest podcast drop? Check out last week’s episode of The Future of Supply Chain, where Santosh sits down with Rob Bailey, the founder and CEO at Backbone AI. Santosh and Rob discuss the need for usable no-code data tools in the supply chain and how Backbone provides solutions for their customers.
That’s all for now, enjoy your week! 😎
We Are Dynamo,
Clay, Santosh, Jon, and the rest of the Dynamo team
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Supply Chain 📦
Instacart Launches Amazon-style eComm Platform. The company is launching Instacart Platform, turning the on-demand delivery provider into a hosted omnichannel commerce solution. The new offering includes a range of enterprise technologies such as custom-built eComm storefronts, fulfillment and last-mile delivery solutions, and data tools to help retailers optimize operations. As of last week, Instacart had more than 750 retail partners facilitating online grocery shopping, delivery, and pickup services from more than 70K stores across North America. In similar news, Wix Added Amazon Multi-Channel Fulfillment For eComm Merchants and reports suggest Online Sales Will Grow To $2.4T By 2026.
Sky-High Shipping Costs Could Keep Prices Surging Until Mid-2023. Although tangled supply chains started to worsen US inflation in 2021, shipping costs remain elevated. Reports indicate that it takes 12 to 18 months for those higher costs to make their way to the prices Americans pay, suggesting pricey shipping will keep inflation at worryingly high levels well into 2023 even if container prices start to fall. Moreover, the last few weeks have brought new risks to the outlook following Russia's invasion of Ukraine driving prices for energy commodities higher and soaring infections in China worsening the supply chain's recovery. For more, consider reading US Shippers Brace For Fuel Cost Hikes Amid Oil Market Volatility and Higher Fuel Costs Blunt US Spot Truck Rate Decline.
White House Pushes Supply-Chain Operators to Share Data. The Biden administration launched the Freight Logistics Optimization Works, a pilot program to have ocean carriers, ports, trucks, and major retailers share data to improve the flow of goods through supply chains. The initiative aims to help freight companies operate more efficiently and rein in the rising costs and extensive delays that have hampered US supply chains over the past two years. The project will start with 18 companies including Target, FedEx, Mediterranean Shipping Company, and C.H. Robinson. For more news on the supply chain regulatory space, The Senate Committee On Commerce, Science, And Transportation Approves Ocean Shipping Reform Act and Biden’s Clean Energy Vision Depends On Diesel.
Self-Driving Trucks Could Replace 90% of Long-Haul Jobs. American trucking companies are trying to import drivers and lower the minimum age for interstate drivers to 18 from 21 as the long-haul workforce averages turnover around every 12 months (not to mention the current driver shortage of 61K drivers). As a result, labor concerns are increasing the demand for self-driving trucks, with the University of Michigan reporting that autonomous trucks could replace about 500K humans driving in US long-haul trucking. Despite an increasing number of Companies Deploying Autonomous Trucks, these systems still have to tackle three main challenges: navigation under crummy weather, regulations clearing the way for robot rigs, and the infrastructure for transfer stations. For more news on labor in supply chains, see how Workforce Management Tech Rollouts Keep Employees Engaged.
Einride Partners With Maersk To Electrify Over 1M Shipments Throughout The Next Five Years. The transition will include 300 Einride electric trucks in “the largest operational contract for electric heavy-duty road freight to date.” To begin, Einride plans to deliver the connected eTrucks order between 2023–2025 while simultaneously helping electrify Maersk’s North American warehousing, distribution, and transportation infrastructure. As a result, Maersk will soon have access to both Capacity-and Software-as-a-Service from Einride, including charging stations and connectivity services. Separately, Maersk Will Omit Calls At Shenzhen Terminals Despite China Lifting Lockdowns and Congestion Fears Pull West Coast Share Of Asian Imports To Record Low.
Walmart To Equip $118M Fulfillment Center With Greyorange Robots. The facility will open in September 2022 with GreyOrange’s robotic technology, which is expected to speed up order fulfillment. More specifically, the robots will help employees store, pick and sort items within the facility. Walmart said the new center will allow it to ship more than 20M items annually, expanding two-day shipping to 61% of Canadians. The initiative is part of Walmart Canada’s $3.5B investment to make online and in-store shopping faster and more convenient for shoppers. Additionally, Walmart Plans To Hire More Than 5K Technology Workers And Open Two New Tech Hubs while Kroger Launches Ambitious AI Transformation Program.
🌟Maersk To Completely Leave Russia And Sell Its Russian Assets. The company has stopped accepting new bookings on all of its services (both, sea, air, and land transport) to and from Russia following its decision to sell all of its assets in Russia. Other leaders in the shipping sector have also decided to leave Russia, including Mediterranean Shipping Company and CMA CGM. As it stands, every third container in Russia belongs to Maersk, while these three operators control at least half of Russia’s shipping market. For more news on the ongoing conflict between Russia and Ukraine, see NYC Rapid Delivery Startups Shutter After Russian Sanctions and a thread on What We Are Not Seeing On Russian Trucks In Ukraine.
Mobility 🚗
Call for an Uber, Get a Yellow Taxi. Uber is partnering with two taxi companies in NYC. The partnership with Curb and CMT will allow people to order a yellow taxi on the Uber app. This is the first example of Uber importing its overseas model of collaboration with taxi companies to US markets. This move shouldn’t come as a surprise ever since Uber announced that it wanted every taxi in the world on its app by 2025 in February. For related articles, check out Lyft, Uber Add Surcharge Due To High Gas Prices and Amid Gas Woes, NYC Ride-Hail Drivers Seek Fuel Surcharges.
🌟Electric Cars Are Now Three To Six Times Cheaper To Drive In The US As Gas Prices Rise. The gap in operation costs between EVs and gas-powered vehicles is continuing to rise. US gas prices have become around $4.20 on average and $5 in many areas. As we’ve discussed previously, this trend has caused a boom in demand for EVs and micromobility options. Some analysts are suggesting that this could be the shock that leads to mass EV adoption. For related news, Tesla's Goal Is To Sell 20M EVs Per Year By 2030 and With Electric Bikes Exploding In Popularity In The US, Is A New Wave Of Light Electric Motorcycles Next?
Russia’s Threat to Nationalize Assets Could Cost Auto Industry Billions. Putin is threatening to seize the assets of all automakers that left Russia due to the war in Ukraine unless they return. Mercedes-Benz alone has around 2.2B of assets that the Russian government might seize. Automakers were aware of this possibility but this move is drastically increasing the cost for many of them to stay out of Russia. In other news, check out Leopard Wanders Into Mercedes Factory, Shuts Down Production for Hours and US Dealership Sales Set A New Record In 2021.
US Will Give Airlines A Break On Takeoff Rights In NYC, DC. The Federal Aviation Administration will allow airlines to keep their slots at airports even if they do not use them. Originally the rule was made to protect airlines who had to cut flights due to the pandemic, this has now been extended even if airlines cut some international flights. Currently, international travel to and from the US is down 42% since pre-pandemic times. In related news, check out Russian Airlines Are Planning International Flights In April.
Ford, Amid Internal Reorganization, Creates Unit For Developing Autonomous Vehicles, New Technologies. This is another move to reshape its internal structure to be more flexible in capturing emerging trends. Ford is also restructuring itself to look more like a startup to attract more talent to work on these innovative technologies. It is also yet another positive sign for AV stakeholders that major automakers are seeing enough to make modest investments in the tech. In related news, check out Computers on Wheels: Automated Vehicles and Cybersecurity Risks in Europe and Mercedes To Accept Liability When Autonomous Drive Pilot Is Engaged.
Tesla Supplier CATL Weighs Sites for $5B Battery Plant. The Chinese battery maker is considering various places across North America for its new plant. The plant would have an 80gwh annual capacity and the ability to supply multiple firms. As the world's largest battery supplier, a CATL investment in North America could be big for the long-term health of EV supply chains. Various cities will most likely be lobbying for the potential 10K jobs that would result from the site being built and operated. For related information, consider reading LG Energy Increases Battery Production In The US With $1.4B Investment.
eScooters Fall Head Over Wheels For Battery Swapping. Battery swapping allows operators to avoid the inconvenience of transporting their scooters off the street when in need of a charge. eScooter providers remained reluctant to give up their proprietary battery tech to standardize which has indirectly created a bottleneck for the widespread adoption of swapping. The most realistic path to this model would be increased consolidation and less variation in the design of the batteries. In other news, Micromobility Modes Could Replace 1/5 Of Short Car Trips and Multimodal Solution: UK Rail Stations Get eBike Chargers.
Fundraises and M&A 💸
FreightFlows Raises $1.8M Seed. FreightFlows is a predictive maritime intelligence platform focused on predicting near-term commercial ship operations. Shaun Hon, general partner at Motion Ventures believes FreightFlows’ forecasting tool addresses some of the deepest inefficiencies in maritime and provides transparency across importers and exporters to make better strategic decisions.
Kwik Raises $2M Led By XBTO Ventures. Kwik helps merchants integrate delivery, payment, and eComm tools in a single application. Today, it serves more than 100K merchants in Africa. The funds will be used to scale its platform.
Outgo Raises $3.4M Led By Neo and PSL Ventures. Outgo is a platform that provides a vertical banking solution for carriers, allowing them to automate broker relationships as well as functions like invoicing, factoring and collections. Additional investors include Bezos Expeditions, Convoy co-founder and CEO Dan Lewis, Uber Eats founder Jason Droege, and Simon Data CEO Jason Davis. The funds will be used to add staff and scale its platform.
Fishtail Raises $4.5M Led By Thursday Ventures. Fishtail is a solution that allows freight forwarders to offer financing to their customers within minutes. Additional investors include Rackhouse Ventures, Amara Ventures, and project44 CEO Jett McCandless. The funds will be used to expand its operations and business reach.
Tacto Raises €5.3M Led By Cherry Ventures. Tacto offers an automated solution for procurement in medium-sized industrial enterprises. Additional investors include UVC Partners and Visionaries Club.
PIX Raises $11M Pre-series A. PIX is a white-label supplier specializing in automotive skateboards that houses the batteries, drive units, and other key components for self-driving vehicles. The company, however, is no longer content with just being a white-label supplier and recently started offering its own self-driving vehicles. The funds will go toward mass production for its own branded robo buses and skateboard chassis platforms.
Bigblue Raises $15M Led By Runa Capital. Bigblue operates an order fulfillment platform for D2C brands. It has signed partnerships with five different warehouses representing over 60K square meters of storage space. The funds will be used to scale its platform, hire talent, and grow its customer base.
Breedr Raises $15.8M Led By Investbridge Capital. Breedr is a livestock trading and analytics platform. In less than three years, Breedr said it has helped more than 1K farmers in the UK transform their businesses through analyzing the data of 160K registered animals. The funds will be used to improve product offerings and expand to Australia and the US.
Skyports Raises $23M Series B. Skyports is an electric air taxi infrastructure and drone services provider. Investors include Deutsche Bahn Digital Ventures, Groupe ADP, Solar Ventus, Irelandia, Levitate Capital, Kanematsu Corporation, Goodman Group, 2i Aeroporti, and GreenPoint. The funds will enable the company to consolidate its position in the advanced air mobility infrastructure and drone operations markets.
Beep Raises $25M Led By ABS Capital. Beep is a provider of multi-passenger, electric, autonomous mobility solutions. Additional investors include Intel Capital, Blue Lagoon Capital, TDF Ventures, and Hidden Creek Management. The funds will be used to further develop its autonomous software platform while also advancing its flagship public transit autonomous mobility service focused on first and last-mile transportation networks.
Kargo Raises $25M Led By Sozo Ventures. Kargo is a platform that captures and aggregates data from physical loading docks and enterprise software systems. Its product connects the physical and digital environment around freight operations serving as a single source of truth for companies. Additional investors include Founders Fund, Activant, Human Capital, Strike Capital, Lineage Ventures, and Flexport.
Sayurbox Raises $120M Led By Northstar and Alpha JWC Ventures. Sayurbox digitizes Indonesia’s agricultural and food supply chain by using demand forecasting, inventory planning, and route optimization technology. The company currently serves 1M customers in the Greater Jakarta, Surabaya, and Bali areas, while working with more than 10K farmers nationwide. The funds will be used to accelerate growth in existing markets, expand to new cities, and extend its end-to-end supply chain nationwide.
WeRide Raises $400M Funding Round. WeRide is a China-based AV company. Investors include GAC, Bosch, China-Arab Investment Funds, and Carlyle Group. This latest round values WeRide at $4.4B.
Shippit Acquires Premonition For AU$20.5M. Sydney-based logistics software company Shippit has acquired last-mile tech company Premonition. Shippit’s leadership believes the acquisition of Premonition will enable its customers to see an efficiency increase of 30%.
Dropoff Acquires Rightaway Delivery. Same-day delivery logistics platform Dropoff has acquired 23-year-old Rightaway Delivery. The acquisition of Rightaway enables Dropoff to grow and expand deeper into the Midwest. The terms of the deal were not disclosed.
Swvl To Acquire door2door. Swvl, a Dubai-based provider of transformative mass transit and tech-enabled shared mobility solutions, has entered into a definitive agreement to acquire door2door, a Berlin-based leading mobility software company. The acquisition of door2door enables Swvl to expand its European footprint and service capabilities. The terms of the deal were not disclosed.
Ola To Acquire Avail Finance. Ride-hailing and mobility company Ola has reached an agreement to acquire Avail Finance, a financial services startup that serves the blue-collar workforce. The acquisition of Avail will enable Ola to strengthen its play in the credit underserved segments that comprise blue-collar workers such as its driver-partner ecosystem. The terms of the deal were not disclosed.
Who's Hiring? 👩💻
Marketing Operations Manager at Stord in Atlanta, GA.
Account Manager at Milk Moovement in Fresno, CA.
Senior Software Engineer, Backend & APIs at VIZION in Atlanta, GA (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.