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 š
ICYMI: Zeelo, one our portfolio companies, was acquired by mass transit group Swvl two weeks ago. On top of that exciting news, Sam Ryan, CEO of Zeelo, was named as one of Forbeās 30 Under 30 in Europe. Huge congrats Sam!
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Clay, Santosh, Jon, and the rest of the Dynamo team
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Supply Chain š¦
16 States Sue To Block USPS Plan To Buy Hundreds Of Thousands Of Gas-Guzzling Mail Trucks. Several prominent climate activists have also joined the lawsuit against USPS over its plan to purchase 148K gas-powered delivery trucks. The states accuse the USPS of only conducting a superficial review which led to the decision to replace 90% of its fleet with fossil-fuel-powered engines despite other environmentally-friendly alternatives. The USPS defended its practices, noting that it costs more to purchase an EV compared to a gas vehicle and that it would be open to increasing its electric fleet should there be more additional funding. For more on USPS, check out USPS Is Promising More Severe Price Hikes Even As Revenues Grow by Nearly $1B.
šAutonomous Trucking Transition To Drive Job Change, Not Job Loss. Automation has always been linked to mass layoffs regardless of industry. As trucking leans towards an autonomous future, truck drivers across the globe are afraid for their jobs. A growing body of research and expert opinion, however, suggests that the shift to autonomous trucks is unlikely to impact as many truck driving jobs as some headlines proclaim. They believe a set of factors will sustain long-haul trucking jobs for the foreseeable future. One of which is that the responsibilities of a truck operator extend way beyond just driving the truck. For more on autonomous trucking, consider reading The Middle-Mile Delivery Challenge Isnāt Sexy, But Autonomous Trucks Can Fix It and Union Pacific And TuSimple Delay Launch Of Autonomous Truck Service.
Demand For Piece-Picking Robots Gains Steam. eComm growth and soaring demand for more warehouses have led to an increase in robot adoption. Piece-picking robots have also garnered the attention of venture capitalists and investors pouring millions of dollars into the space. According to Aaron Prather, a Tech Lead from FedEx, piece-picking technology has become an increasingly important part of their day-to-day parcel operations. For more warehouse automation news, check out 3PL Fulfyld To Deploy Invia Robotics Automation In eComm Warehouse and Berkshire Grey And Logistex Partner On Robotic Automation Solutions In UK.
Restaurants Are Seeing A Jump In Motherās Day Reservations. To no oneās surprise, COVID put a damper on Motherās Day activity over the last two years. However, according to data from OpenTable, bookings at restaurants are up 39% compared to the same period in 2019. And thatās just the average. Cities in the south, like Scottsdale or Austin, saw reservations rise by over 100%. Some restaurants had to open up earlier to accommodate the high levels of demand. In unrelated, yet surprising news, Nikola Reports Surprise Q1 Revenue.
China Lockdowns Are Not Causing Shipping Chaos, Say Liner CEOs. To clarify, disruption is still taking place, just not as severe as initially thought. As a matter of fact, the average wait time for export containers at the Port of Shanghai has actually decreased by nearly 43% y/y. Time to celebrate? Donāt get your hopes up. Once business gets up and running like normal, expect that queue of ships youāve likely heard about outside of Los Angeles and Long Beach to rise higher again. For more on China and COVID, consider reading Apple Supplier Foxconn Freezes Hiring Of New Workers For Worldās Largest iPhone Factory In Zhengzhou Amid Citywide Lockdown and Shanghai Lockdown Reignites Supply-Chain Problems for US Companies.
How Russiaās Invasion of Ukraine Is Stressing the Neon Supply Chain. Here are a couple of cool facts that will impress your friends: (1) Around 85% of the semiconductor chips made today use neon gas. (2) Nearly half the worldās neon gas supply is processed in Ukraine. The conflict between Ukraine and Russia has further complicated the supply of semiconductors since Ukraineās largest neon processors have halted production. Thankfully, large chipmakers have enough neon supply to carry on for the time being, but smaller players are already feeling the heat. For more on the situation in Ukraine, check out Dutch And Swedish Dockers Refused To Unload A Tanker Carrying Russian Diesel Because Of 'International Solidarity' Over The Ukraine Invasion.
From Coffee To Ketchup, Retailers Seek Price 'Shields' As Inflation Runs Riot. Price increases have been anywhere between 6% and 20% according to Reuters. Grocers are looking to freeze the price hikes until July to protect customersā wallets who are having to pay on average 8% higher than last year. The pricing pressure will then shift to suppliers upstream who might have to deal with lower margins. Want more on the grocery sector? Check out Amazon Will Close Six Whole Foods Stores In Four States and The Middle-Mile Delivery Challenge Isnāt Sexy, But Autonomous Trucks Can Fix It.
Mobility š
Buttigieg: Congressional Action Needed To Expand AV Deployment. Last Tuesday, Transportation Secretary Pete Buttigieg told a Senate panel that both the Department of Transportation (DOT) and Congress would need to expand their AV testing and deployment. The DOT and Congress are responsible for developing a legislative framework that handles widespread AV use. Buttigieg also said he would work on granting exemptions to the standard vehicle requirements for companies that request. The National Highway Traffic Safety Administration (NHTSA) can only authorize 2.5K vehicle exemptions per applicant per year. In other news, consider reading GM Patents Autonomous Cars That Can Teach Trainee Drivers and Robotaxi 'Ghost Driver' Surprises San Francisco Police in Traffic Stop.Ā
āWeāre Just Robotsā: US Airline Workers Stranded Amid Staff Shortages. Staff shortages are continuing to be a major problem at many airlines. JetBlue is the latest in a long line of airlines to have flight delays and cancellations as a result. The airline is also facing union disputes over poor working conditions. Many unions are reporting attendants sleeping on airport floors and being given a lack of consideration given the long hours. The pandemic seems to have fractured labor relations in aviation. This could be an area we see a lot of disruption in the coming months. In other news, Nigerian Carriers To Shut Down Operations Due To Rising Fuel Costs.Ā
šBiden to Provide $3.1B to Support Domestic Production of EV Batteries. The White House announced it would also set aside a separate pool of $60M in grants for battery recycling initiatives. The big reason, outside of investment in sustainability initiatives, is to continue to decrease the USā foreign dependence on battery production. While it will likely take years before the US could have sustainable battery production, this is a good sign for players in the space looking for government investment. In related news, check out More Details On EV Battery Production Forecasts For The Future and Cars Manufacture the Modern Middle Class.
Apple Snags Longtime Ford Exec as the iPhone Maker Powers up EV Car Project. Apple is reinvesting in its efforts to build an electric AV. The project has been delayed due to regulatory issues and executive departures. Apple previously announced that it would bring an AV to market by 2024. Not much else is known about the functionality of the car but this is a signal that the project is still alive. In related news, check out Michigan Funds Six New Services To Support EV Adoption and Batteries Have Become VC and PEās Most Electric Investment Opportunity.
Lyft Brings Shared Rides Back To More US Cities In Bid To Win Riders. Lyft is bringing back its carpooling service post-pandemic. This is most likely to offset the recent surge in ride-sharing prices due to a combination of driver shortages and fuel supercharges. This may or may not be effective depending on how many people engage in the service but an interesting way to try and lower prices. For related information, consider reading Uber Loses $5.9B As Asia Investment Values Fall and People In Beijing Can Now Book A Taxi With No One At The Wheel.
Bosch Is Latest To Join Hydrogen Investment Wave. The investment in hydrogen is continuing to heat up. Bosch said it will invest as much as $591M in hydrogen tech by the end of the decade. Hydrogen offers a promising solution to a lack of EV uptake in larger vehicles and aviation. This comes on the heels of the Department of Energy (DOE) backing a $504M green hydrogen project in Utah. Even the Air Force awarded a second contract this week for a hydrogen fuel cell power plant. In other news, Ammonia As A Fuel to Decarbonize Transportation and Sila Buys New Factory To Produce Next-Gen EV Battery Tech On Us Soil.Ā
Self-Driving Cars Will Need Smarter Roadways. Despite advancements in AV technologies, there could be a limit to their ceiling without smart road infrastructure. If cars can take in information from both the internal vehicle system and the road then they become exponentially more intelligent about potential threats. Thereās a lot of buzz around the possibility of federal funding for CAV tech in the near future (like the first summary in this section). For related information, check out, Mercedes Opens Sales Of Level 3 Self-Driving System On S-Class, EQS and How To Improve Public Transport With Better Vehicle Connectivity.Ā
Fundraises and M&A šø
GoMetro Raises $1M Seed Extension. GoMetro is a South Africa-based mobility management platform that enables public transport and logistics operators to boost operational efficiency, futureproof their services, and tighten their competitiveness. Investors include Kalon Venture Partners, Hlayisani Capital, Tritech Global, 4Decades Capital, and E Squared Investments. The funds will be used to accelerate its growth, bolster its commercial team and rapidly expand into the South African, UK, and American markets.
RideTandem Raises Ā£1.75M Led By 1818 Venture Capital. RideTandmen provides workplace transport creating new ways for people to get to work from/to towns and small cities. Additional investors include Conduit Connect, Low Carbon Innovation Fund, Ascension, and Seedrs. The funds will be used to grow its team and platform.
Paccurate Raises $2.2M Led By SpringTime Ventures And FirstMile Ventures. Ā Paccurate is a shipping and fulfillment optimization platform. To help shippers reduce labor, material, and transportation costs, Paccurate provides a containerization engine with a lightweight API. This funding round will enable Paccurate to onboard major retailers and 3PLs faster, and expand their suite of fulfillment optimization tools.
Tengiva Raises $4.95M Led By Fonds Ecofuel. Tengiva is a digital supply chain platform for the textile industry. Millions of dollars of inventory are available through the Tengiva platform, including more than 300 different materials that are available to brands in 30 countries worldwide. The funds will be used to commercialize its platform, build a state-of-the-art warehouse, and execute its global expansion strategy.
Gadfin Raises $7M Led By Southern Israel Bridging Fund. Gadfin is a developer of eVTOL solutions for long-range B2B aerial delivery and scanning services. The companyās flagship product is the hydrogen fuel cell-powered Gadfin Spirit-One ā designed for long-range deliveries of up to 250km, at a speed of 100km/h, enabling mission-critical cargo delivery. The funds will be used to obtain its CAA certification approvals and expand its international activities.
Flyp Raises $10M Led By Asymmetric Capital Partners. Flyp is a circular economy platform that uses AI to resell secondhand items through online sellers. The startup estimates there are around 350k power sellers in the US, with the majority of them doing it part-time. Their goal is to turn the part-timers into full-timers and get folks who have never been resellers to try it out.
Mars Auto Raises $12M Led By GFT Ventures. Mars Auto is a self-driving trucking startup based in South Korea. The company has successfully tested South Korea's first self-driving truck installed with cameras and small computers on a highway from Seoul to the southern port city of Busan for five and a half hours without driver intervention. The funds will be used to expand its engineering team, increase its truck fleet, and build the necessary infrastructure to train vast amounts of driving data.Ā
Outerspace Raises $30M Led By Prysm Capital. Outerspace provides fulfillment solutions for high-growth omnichannel consumer brands. Its operational and technology solutions allow brands to transform fulfillment and logistics from a cost center into a competitive advantage. The funds will be used to grow its operations and refine its technology.
Shippit Raises $48M Led By Tiger Global & Tidal Ventures. Shippit provides multi-carrier shipping technology that helps retailers ship smarter, optimizes fulfillment, and creates better post-purchase experiences. The startupās software facilitated more than 40M deliveries in 2021, which represented a 300% increase on pre-pandemic figures. The funds will enable to company to scale in South East Asia.
DoDo Group Raises ā¬60M Led By EC Investments And J&T Capital. DoDo is a Prague, Czech Republic-based provider of a B2B last-mile logistics technology platform. Its platform currently operates with about 2K couriers and 1.25K vehicles in the Czech Republic, Slovakia, Poland, Germany, Austria, Hungary, and Bulgaria. The funds will be used to further develop its data-driven logistics platform and expand into Western and Southern Europe.Ā
Fictiv Raises $100M Led By Activate Capital. Fictiv is a digital manufacturing ecosystem that delivers high-quality parts at unprecedented speeds. Since its founding in 2013, the company has manufactured over 19M parts for 3K early-stage companies and large enterprises. The funds will be used to address some of the aforementioned supply chain issues with its platform.
Zepto Raises $200M Led By Y Combinator Continuity. Zeptois a 10-minute grocery delivery startup based in India. Today, the delivery service is operational in 11 cities across India and processes hundreds of thousands of orders daily. The funds will be used to expand to more cities in India and grow its network of dark stores.
Group14 Technologies Raises $400M Led By Porsche AG. Ā Group14 Technologies is a global manufacturer and supplier of advanced silicon-carbon technology for lithium-silicon batteries. Its next-generation materials help lithium-silicon batteries deliver 50% higher performance than traditional lithium-ion batteries, eliminating range and charge anxiety. The funds will be used to increase manufacturing capabilities and meet the demand of the global EV market.
Shopify To Acquire Deliverr For $2.1B. Shopify has reached an agreement to acquire Deliverr, a leading fulfillment technology provider, for $2.1B. This acquisition enables the two companies to remove supply chain complexity for merchants of all sizes, on and off Shopify, democratizing access to end-to-end logistics for independent brands for the first time. The acquisition will also power Shop Promise, a new service that offers consumers two-day and next-day delivery options with the merchants they love.
American Expediting Acquires Crosstown. American Expedition, a cold-chain logistics and ground transportation company has acquired Crosstown, an on-demand and scheduled courier service. The acquisition of Crosstown will further strengthen the company's network in the Tennessee Valley Region through its 27 years of demonstrated experience there. The terms of the deal were not disclosed.
Lineage Logistics Acquires Mandai Link Logistics. Lineage Logistics, the worldās largest temperature-controlled industrial REIT and logistics solutions provider has acquired Mandai Link Logistics, a Singapore-based logistics solutions provider. This acquisition enables Lineage to strengthen its presence in South East Asia, offering customers an expanded network across Asia and providing a platform for further growth in the region. The terms of the deal were not disclosed.
SPAC Radarš”
Shenzhen State Fuel Cell Corporation Eyeing $1B SPAC Deal. Shenzhen State Fuel Cell is a Chinese provider of hydrogen used in fuel cell vehicles. The company is considering a Nasdaq debut early next year via a SPAC merger that would land it a $1B valuation after listing. If the deal with its undisclosed suitor goes through, the company will become the latest in a long line of electric vehicle companies to choose the short route to an IPO.
Business Building š ļø
Beyond Aggregation: Amazon-aaS. Ben Thompson at Stratechery breaks down the recent effort from new Amazon CEO, Andy Jassy called āBuy with Primeā that takes inspiration from AWS to further scale the Amazon Logistics competencies. Great fodder for those in the midst of business model experimentation or maturation.Ā
SaaS Multiples Are At 3 Year Lows. Jason Lemkin at SaaStr deconstructs the current state of fundraising in SaaS. He does note- āIf you have 24+ months of cash runway, you donāt have to worry about all that much of this on a daily basis.ā
Thoughtfully Building Company Culture. āIf you donāt intentionally set the tone early on, your culture will run away from you ā and youāll likely be too slow to realize it.ā
Who's Hiring? š©āš»
Technical Product Manager at Plus One Robotics in San Antonio, TX.
Software Engineer, Applications at VIZION in Atlanta, GA (remote ok).
Flight Operations Lead - USA at Manna in Dublin, Ireland (remote ok).
š„ Have you seen any interesting startups recently? Introduce us.
ā¤ļø We would love your support. Please forward to friends and share on social media.
šļø If you were forwarded this and found it interesting, please sign up.
š Check out Dynamo's podcast series, The Future of Supply Chain.