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
If you havenât already, check out our blog for our latest perspectives on the industry, technology, and startup building. Weâve started a weekly series on our blog as we digest the impact of COVID-19 on the supply chain you can find there. Last weekâs perspective centered around Antifragile Supply Chains.
Stay safe, healthy, and sane!
We Are Dynamo,
Santosh, Ted, Barry, and Jon
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Supply Chain đŚ
As Demand Surges, Supplying and Shipping Take on New Importance. Anshu Prasad, CEO of LEAF Logistics (a Dynamo portfolio company) receives a feature this week in the New York Timesâs Fast Forward series. Along with chief executive of Transfix Lily Shen, Anshu breaks down the logistical challenges facing long-haul shippers from driver shortages and health concerns to long turnaround times. Related: Coronavirus Pandemic Widens Divide Between Online, Traditional Businesses
How the CARES Act Will Affect Supply Chains. Offering $2T in economic stimulus, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provides broad funding to support American businesses through the COVID-19 shutdown. Among its measures: $10B in loans to the U.S. Postal Service, $7B for cargo airlines to retain workers, and $60M to help manufacturers. Those with a little more time on their hands can try reading the actual CARES Act itself.
Freight Volumes Plummeting As Fast As They Soared. Truckload freight is now following most of the American economy in grinding to a halt. With consumer spending now down 30%, it appears the panic-buying-pull-forward of demand for home supplies is over. Trucking 101, Whatâs the Difference Between Spot and Contract Rates?
My Family Owns a Grocery Store. The Supply Chain Is a Real Problem. Tori Draeger, director of marketing for Draegerâs Market, a Bay Area grocery store chain, provides a firsthand account of her familyâs coronavirus preparations from temporarily banning reusable bags to making designated shopping hours for seniors. Although toilet paper and frozen foods have suffered the worst supply chain crunch, she reports that produce has proven robust. More reading on food supply chains: Food Supply Chain Slows Around the World on Trucking Bottlenecks, and from our friends at Loup Ventures, COVID-19 Restrictions Are Accelerating Online Grocery Shopping.
Logistics Tech Firms Bolster Last-Mile Sector Straining under Coronavirus Demands. Across North America, logistics startups are retooling their platforms to focus on healthcare and food in place of retail and passenger transportation. Berkeley-based AxleHire has donated some of its same-day delivery capacity to deliver meal kits to workers at a local hospital. Meanwhile, Ontario-based Descartes has offered up its logistics software connecting pool distribution operators to businesses needing to make home deliveries. Also in the last mile, Uber Eats Beefs Up Its Grocery Delivery Offer as COVID-19 Lockdowns Continue while DoorDash Starts Delivering Toilet Paper and Other Groceries.
How Decades of Offshoring Led to a Mask Shortage in a Pandemic. As the surge in demand for personal protective equipment has shown, building not just masks but also more production capacity is difficult in a nation that spent decades offshoring its manufacturing base. However, the coronavirus might cause both businesses and political leaders to rethink the costs of stockpiling such parts and materials. ICYMI, A Million N95 Masks Came From China Courtesy of the New England Patriotsâ Plane.
Manna Gearing Up to Deliver Supplies During Crisis. Although food trials for his drone delivery startup have been disrupted by the coronavirus, Irish entrepreneur Bobby Healy finds additional exigence amidst the current outbreak. Given that its UAVs can deliver straight to someoneâs backyard, Manna (a Dynamo portfolio company) is seeking the go-ahead from regulators to expand its service offering as Healy posits drones as an ideal contact-free delivery option for prescriptions and other essentials. Related, Coronavirus Lockdowns Prompt Smaller Restaurants to Rethink Delivery.
Mobility đ
Cities after Coronavirus: How COVID-19 Could Radically Alter Urban Life. In the wake of COVID-19, urban planners will face a philosophical tension between densification - the prevailing drive to make urban areas become more concentrated and energy-efficient - and disaggregation - which caters to the social distancing needed in times of contagion. Given the expanded capability to work from home, some observers predict a âdeclining cost of distanceâ for workers to live far from historic commerce centers, anticipating the growth of far-flung ânew villages.â Meanwhile in the UK, Bus Companies to Be Promised Coronavirus Bailout This Week while US Sends Funding to City Agencies.
Wuhan Bike Ridership Report. Using Mobike data through March 2020, the Wuhan Transportation Development Strategy Research Institute has published its "Epidemic Riding Report," showing the bike share played a critical role in health care workersâ transportation after public transit and personal car use was restricted. From January 24 to March 12, hospital-related cycling accounted for 41.5% of all active vehicle use. In a related opinion piece, Why Shared Micromobility Will Survive Post-Pandemic.Â
Ford Wants Return of âCash for Clunkersâ to Spur Demand. As new car sales have tanked, Ford is reportedly nudging politicians for a second iteration of the Recession-era car buying program. However, the mixed results of the last incentive program - from limited job creation to the disposal of roadworthy vehicles has Rob Stumpf of The Drive recommending caution. If you missed it, Q1 Auto Sales Were Down 1.3% Y/Y.
Underwriters Laboratories Publishes AV Standard. Global certification company Underwriters Laboratories releases Standard for Safety for the Evaluation of Autonomous Products. Covering applications for drones as well as self-driving cars, the standard prescribes technology-neutral safety practices encompassing data integrity, autonomy validation, and human-machine interaction.Â
Lyft Is Referring Drivers to Jobs at Amazon After Massive Ridership Decline. Through a new partnership with Amazon, Lyft has created a dedicated web portal to help drivers find work with the e-commerce giant. Although the rideshare company does not operate a food delivery network like rival Uber, Lyft has nonetheless leveraged its driver network to also deliver medical test kits in recent weeks. Related, Uber Shipping Disinfectant to Drivers.
GM Rolling Out Wireless CarPlay and Android Auto. GM joins BMW, Mini, and Audi in offering drivers wireless versions of the two systems. The 2021 Chevrolet Trailblazer will be the first GM model to offer both smartphone integrations. On the new release front, Volvo Releases Valent for Remote Maintenance.
Honda Launching 2 EVs On GMâs Platform. In a joint press release this week, Honda and GM announced a partnership that will see two new Honda vehicles built in North American factories on General Motorsâ global EV platform. With GM providing its Ultium batteries, OnStar, and SuperCruise driver assist system, the Japanese company will nonetheless control the exterior, interior, and final tuning of the driving characteristics. The expected on-sale date is not until 2024. Looking for some WFH fun? Learn to Build Paper Car Models.
Fundraises, M&A, Talent đ¸
Via Raises $200M Series E Led by EXOR. The transportation startup provides ridesharing optimization through its app, which connects people and packages with drivers traveling in the same direction. Launched from New York City in 2013, the company has already expanded to more than 20 countries and will use the new funds to weather the coronavirus outbreak while supporting emergency services in the networks where it operates.Â
Enovix Raises $45M from T.J. Rodgers and York Capital Management. The Fremont-based company has developed 3D wave array storage systems for Lithium-ion batteries to significantly increase energy density. Using the new funds to complete its high-volume battery production facility, Enovix is now working with automotive manufacturers to apply its patented battery technology in electric vehicles.Â
Seegrid Raises $25M Led By G2VP. Seegrid builds autonomous mobile robots, fleet management software, and provides professional integration services for clients to better address their material handling needs. The round will be used to ramp go-to-market efforts.
Qcraft Raises $24M Seed Round Led by IDG Capital. Founded in March 2019 by four former Waymo engineers, Qcraft has developed a system solution to train autonomous vehicles for complex urban environments. The fresh funds will be used to further develop the companyâs intelligent simulation platform that requires only mapping, simulation, and validation without the need for large fleets and real-drive data.
RoadSync Raises $5.7M Series A Led by Base10 Partners. The self-described âSquare for the trucking industry,â RoadSync provides a digital payment platform for transportation companies, where the majority of invoices are still made on paper. Launched in 2017, the platform has already processed more than $100 million worth of payments.
Company Building đ ď¸
đ§Invest Like the Best: Bill Gurley and Chetan Puttagunta. Benchmarkâs dynamic duo discuss enterprise and consumer startups, venture funding and growth, and the entrepreneurial spirit in the face of a crisis.
Startup, Hire Me!. An effort for displaced talent pulled together by Pear VC. A great resource to augment your staff (if youâre hiring) and equally guide those looking for work.
Decision Making in Uncertain Times. âOverall Iâm seeing high degrees of anxiety and concern about making the ârightâ decision. Thatâs understandable given the circumstances. Recognize that no one really knows whatâs going to happen here and that your job is to make the best decisions you can. âRightâ doesnât exist in times like these.â
Who's Hiring? đŠâđť
Digital Marketing Manager at Skupos in Denver, CO.
DevOps Engineer at SVT Robotics in Norfolk, VA.
Operations Specialist at Leaf Logistics in New York, NY.
Check out other jobs at Dynamo portfolio companies.
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.