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 💭
March flew by faster than a wink of an eye.
Do you know of any startups in the supply chain space? Shoot Clay an email at clay@dyanmo.vc. Otherwise, be sure to check out last week’s podcast featuring Çetin Meriçli, co-founder & CEO of Locomation AI to learn more about autonomous trucking.
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Clay, Santosh, Jon, and the rest of the Dynamo team
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Supply Chain 📦
GoPuff Cuts 3% of Global Workforce in Layoffs Ahead of Potential IPO. The ultrafast delivery company is laying off more than 400 employees of its global workforce. The layoffs affected the corporate side as well as its warehouse operations and comes as the company insinuates IPO ambitions but has no plans to go public in the near term. The co-founders said the move was part of Gopuff's attempt to enter its new chapter as a global company following an aggressive expansion into the UK and Europe this year on the back of some acquisitions it made in the region. On the same note, FedEx Cut Pay By $12.6K For Each Inside Sales Worker and Layoffs In China’s eComm Sector Stoke Larger Unemployment Fears.
Airlines Divert Cargo From Shanghai, Putting More Pressure On Rates. Airlines are canceling cargo flights from Shanghai Pudong (PVG) following the city’s COVID lockdown, with diverted cargo likely to push up air freight rates at alternative gateways. Most recently, Cargolux announced it would suspend PVG flights, with other airlines expected to adjust their schedule at the last minute, without prior notice. Moreover, many freighters are expected to be canceled from/to PVG due to a lack of handling manpower caused by the urgent lockdown, resulting in a more severe shortage of capacity to and from PVG. Similarly, Russia-Free Routes To Europe Add Time And Money For Chinese Rail and European Logistics Go From One Crisis To The Next.
Disruption In The Containerized Logistics Value Chain. COVID led to a boom in US containerized consumer goods demand, causing congestion, and reducing effective container logistics capacity. Global container shipping rates have, on average, increased to four to five times their 2019 levels while some spot markets have seen even higher rates. Shippers have struggled to locate capacity among other things including acute shortages of vessel space, container boxes, chassis, warehouse space, intermodal capacity, and labor. Average container schedule delays have doubled globally and increased by six times on the Far East and North America trade lines from two days in the 1Q20 to 12 days in the 4Q21. In this research report, McKinsey developed four possible scenarios of rate outcomes to help shippers navigate the path towards normalization. For more news on maritime supply chains, Lack Of Equipment Spurs Rail Crisis At West Coast Ports and Container Demand To Remain High On New Vessel Deliveries.
UPS Tries Out 'eQuad' Electric Bikes For Urban Deliveries. Besides making public commitments to cut their carbon footprints, package-delivery companies are seeking new ways to cut the cost of last-mile deliveries given soaring eComm orders. Most recently, UPS announced it is trialing around 100 of the eBikes, designed and built by British firm Fernhay, in seven European markets and will also launch trials in the United States and some Asian markets. Furthermore, the Atlanta-based company sees an opportunity to scale up the use of eBikes in megacities to complement its range of vans and trucks. In other news, Maersk Orders 110 Volvo VNR Electric Trucks For North America and Chargepoint Aims To Power Gatik Autonomous Electric Trucks.
Research Highlights The Supply And Demand Imbalance For Industrial Real Estate Space. High-density automated storage and retrieval systems take advantage of unused vertical ceiling height, increasing capacity in a smaller footprint. The ongoing theme of industrial real estate space being in short supply remains fully intact, according to a report issued today by Chicago-based real estate firm JLL. The report mentions that many tenants are being forced to expand or relocate to secondary and tertiary markets with vacancies at the lowest on record and decreasing availability in the industrial market. Despite the challenges, corporations in warehousing and fulfillment keep expanding with Macy’s Planning To Invest $584M In New Fulfillment Center and Blue Yonder Partnering With Snowflake For Expanded Data Cloud Supply Chain Solution.
Etihad Rail Announces Rail Freight Terminal At Dubai Industrial City. With a capacity of 5M tonnes, rail freight supports the industrial and logistics sector in Dubai. The new terminal, which is part of the UAE National Rail Network, will reinforce the UAE’s international competitiveness as one of the largest trading partners globally. The terminal aims to enhance connectivity between the Emirates and serve vital sectors, including building materials, machinery, cars, metallurgical, and chemical industries. Stretching across 5.5Mft², the terminal will connect major manufacturing centers and warehouses in Dubai Industrial City with a sustainable and efficient rail network. For more news on rail, see Rail Steams In To Rescue South India's Shippers As Haulage Remains Scarce and The USDA Asks The Surface Transportation Board To Adopt Reciprocal Switching And Require Collection Of First- And Last-Mile Data.
🌟Easing Container And Truck Rates Bring Cold Comfort To Shippers. The slight easing of eastbound trans-Pacific container spot rates and US truckload spot rates, coupled with weakening economic indicators, are dangling signs of normalization for ocean and surface transport prices. Container freight rates generally dip after the Chinese New Year, and this year was no different, although the decline was less than in the last five years: Asia–US West Coast container spot rates fell 11% by late March from Lunar New Year, although that was less than the ~18% decline seen in recent years for the period. On the surface side, although weighted truckload rates quoted by brokers to shippers peaked in November, market volatility and higher fuel prices are keeping rates elevated even if they are off their late 2021 highs. For more news on freight, Countries Turn to Canada As Trade With Russia Halts and The Latest Jobs Report Signals A Weaker Freight Market.
Mobility 🚗
🌟US Government Pulls Out 1950's Regulation For Battery Supply Chain. To prioritize domestic production of raw materials needed to make batteries for electric vehicles, President Biden is applying the federal Korean War-era Defense Production Act. The Defense Production Act authorizes the US president to require industries to produce certain goods – in this case, lithium, nickel, cobalt, graphite, and manganese. The move is intended to minimize the US’s dependence on foreign supply chains. The Defense Production Act provides for various financial measures and purchase commitments to enhance domestic production capabilities necessary to support national defense and homeland security procurement requirements. For more news within supply chains related to public policies, consider reading The White House Sets Its Sights On True Energy Independence and The USDA Asks The Surface Transportation Board To Adopt Reciprocal Switching And Require Collection Of First- And Last-Mile Data.
Toyota, Aurora Test-Drive Autonomous Ride-Hailing In Texas. Toyota’s Sienna minivans are to be tested on streets and highways in Dallas. This announcement comes after Waymo said earlier in the week that it is ready to deploy AVs in San Francisco. 2022 has been a productive year so far for the progress of AV implementation and this Toyota partnership is another signal of how roads could look in the coming decade. In other news, Waymo Opens Its Self-Driving Taxis To 'Trusted Testers' In San Francisco and Nevada Pledges To Electrify All New Trucks And Buses By 2050.
Toyota, GM Report Slowing US Auto Sales. A shortage of vehicles in dealership lots has been the biggest dampener on auto sales due to the increased demand for new cars and trucks. However, analysts predict the first-quarter drop by as much as 16% compared to 2021. As we’ve reviewed over the past couple of months, vehicle supply chains are being squeezed at every angle leading to the shortages we’re seeing at dealerships across the country. In other news, check out US Adds 73 Aircraft To Its Russian Export Sanction List and Russia’s Invasion Of Ukraine Will Lower Car Production By Millions Of Units Over Two Years, S&P Says.
Alaska Airlines Cancels 9% Of Its Flights Over Staffing Woes. Dozens of US West Coast flights were canceled Friday as pilots protested in several cities over contract negotiations. Around 120 flights were canceled, impacting over 15K passengers. The Union’s big issues involve quality of life, much of which is impacted by the pilot shortage. Airline labor disputes could add yet another stressor to the airline industry. In related news, check out Travel Subscription Plans From Airlines And Hotels Are Expanding.
Porsche To Build Out Its Own Network Of EV Charging Stations. Porsche has shifted its charging plan from relying on partnerships to establishing its own charging network. The locations will be built in Switzerland, Germany, and Austria starting next year. Porsche still intends to rely on partnerships with existing charging providers but this reflects a long-term goal to try and catch up to Tesla in its investment in charging networks. In related news, check out Porsche Is Reportedly Working With Quantumscape To Develop An Electric 911 Powered By Solid-State Batteries and Rivian Is Building Its Own EV Charging Network, But With An Adventurous Twist.
Ford Recalls 737K US Vehicles Over Software And Fire-Risk Issues. The recalls are coming from its 2020-2022 Ford Escape and 2021-2022 Ford Bronco sports vehicles. This is because of a potential fire hazard due to the oil separator housing cracking. There have also been complaints about functionality issues with other Ford vehicles and their trailer brake control software. For related information, consider reading Ford Recalls More Than 330K Mustangs In US For Camera Malfunction and Change Is Coming: What Ford's Restructuring Means For Its Dealer Network.
Europe: 20% Of New Cars Sold In February 2022 Were Rechargeable. Almost 160K new passenger plug-in cars were registered in Europe last month, a 38% increase from last year. The biggest benefactor of this surge in demand seems to be Tesla with the Model 3 and Y being the most registered plug-ins during the month. This is another indicator that the surge of EV adoption is finally here. In other news, A Fleet Of Tesla Model 3s Is Going To Be Deployed For Uber Drivers In London and General Motors’ US Sales Slumped In The First Quarter, Trailing Rival Toyota.
Fundraises and M&A 💸
Koloni Raises $1.3M Led By Launch Fund. Koloni provides programmable smart lockers for rental, storage, and parcel delivery applications. Additional investors include ISA Ventures, Twelve19 Ventures, Chicago Early Growth Ventures, and Locker One Ventures. The funds will be used to grow its team.
Pi Beam Electric Raises $1.7M Led By Inflection Point Ventures. Pi Beam is looking to develop India’s first vertically integrated EV ecosystem platform. The company currently has 100 EVs on its platform and plans on using the funds to take that number up to 2K.
Leaf Agriculture Raises $5M Led By S2G Ventures. Leaf's unified farm data API helps developers upgrade food systems. Additional investors include Cutlivian, Radicle Growth, and SP Ventures. The funds will be used to globally grow its commercial, customer success, and development teams.
Parcelly Raises €6M Led By Scania Growth Capital. Parcelly is a provider of carrier and retailer agnostic Pick-up and Drop-off (PUDO) technology. The company has seen a 450% y/y platform growth over the past financial year. The funds will be used to support platform development and expand internationally.
Emitwise Raises $10M Led By Xplorer Capital. Emitwise is an AI-driven carbon management platform that helps companies measure, report, and reduce their carbon footprint across their operations and supply chain. Additional investors include Outsized Ventures, True Ventures, and ArcTern Ventures. The funds will be used to grow its platform.
SHIPSTA Raises $10M Led By Tricap Investments. SHIPSTA is a freight sourcing and procurement platform. The company is currently serving over 100 enterprise clients, a third of which are Fortune 500 companies. The funds will be used to accelerate its global expansion.
Airhouse Raises $11M Led By DNX Ventures. Airhouse handles eComm operations for DTC Companies. The startup sits between brands creating and selling goods that they want to ship to customers and various 3PLs. Since its launch, Airhouse’s customers have expanded by 600%.
Sourceful Raises $20M Led By Index Ventures. Sourceful provides a sourcing and supply chain platform that helps clients find environmentally sustainable packaging for their products. Sourceful has around 30 customers since it launched the platform in Q1, but says it’s expecting this to step up significantly from here on in. The funds will be used to expand into international markets and grow its presence in Europe, Asia, and the US.
Everli Raises Additional €22M Led By United Ventures. Everli is a Europe-based online grocery marketplace. Everli has fulfilled more than 4M deliveries in 135 cities in Italy, France, Poland, and Czech Republic, partnering with retailers such as Lidl, Carrefour, Conad, Coop, and Kaufland. The funds will be used to accelerate growth and international expansion.
FarMart Raises $32M Led By General Catalyst. FarMart is an India-based startup that helps food businesses digitally source quality produce from farmers. The startup currently works with 60K retailers across 30 states, impacting over 2M farmers. The funds will be used to scale its platform.
Wiz Freight Raises $36M Led By Tiger Global. Wiz Freight is a full-stack digital freight forwarding startup for emerging markets. The company currently employs more than 350 people and has a network of more than 200 carriers and vendors. The funds will be used to grow its team, set up new R&D centers, and expand into new markets.
Dispatch Raises $50M Led By PeakSpan Capital. Dispatch is an on-demand delivery platform that enables businesses to track, manage, and share deliveries as they are ordered. Since its last financing round in 2020, Dispatch doubled its product and engineering teams as it grew 197% year over year. The fund will be used to hire more employees and expand into new markets.
Hadrian Raises $90M Led By Lux Capital and a16z. Hadrian is building large automated factories to transform the aerospace supply chain. According to its CEO, Hadrian has launched Factory #1 and proved that they were able to produce space and defense parts 10 times faster and more efficiently than competitors. The funds will go toward building Factory #2, which is planned to be nearly 100k ft² in Torrance, California.
Zongmu Technology Raises $157M Series E. Zongmu is a Chinese autonomous driving systems developer. Zongmu has partnerships with traditional carmakers including Faw Group’s Hongqi and Chang’an Automobile to provide them with mass-produced ADAS technologies and products. The funds will be used to speed up R&D and build a production base.
Chalo Acquires Vogo. The India-based public transport tech company, Chalo has acquired two-wheeler rental startup, Vogo. The acquisition of Vogo enables Chalo to offer a convenient and cost-effective option for bus passengers to travel to and from bus stops, solving the door-to-door daily commute. The terms of the deal were not disclosed.
Metropolis Acquires Premier Parking. Metropolis, a developer of advanced technology for mobile commerce, has acquired parking solution company, Premier Parking. The acquisition of Premier Parking enables Metropolis to solidify its position in the parking and mobility industry. The terms of the deal were not disclosed.
Tier Mobility Acquires Fantasmo. Ride-sharing micromobility company, Tier Mobility has acquired Fantasmo, a US-based computer vision-powered eScooter parking startup. The acquisition of Fantasmo enables Tier to abate the public nuisance effect of scooters parked on sidewalks. Tier will bring on all of Fantasmo’s 15 staff members and continue to invest in and develop the technology.
Swvl In Deal With Queen’s Gambit Growth Capital. Swvl is an Egypt-born, Dubai-based mass transit and shared mobility provider. The SPAC merger will see Swvl offer 20-30% of its total share. Through this transaction, Swvl raised $121.5M in PIPE.
Who's Hiring? 👩💻
Implementation Project Manager at Vector AI in Chicago, IL (remote ok).
Flight Operations Lead at Manna in Dublin, Ireland (remote ok)
Data Engineer 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.