Dynamo Dispatch (11/02/20)
Issue 127 | Outrider, Onfleet, WareIQ
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 listened to it yet, check out Episode 69 of the Future of Supply Chain where we hosted Jeff Dangelo from Turvo. Some of our favorite parts:
Why Jeff doesnât see Turvo as a TMS (6:52)
Discussing the fate of the broker over the next few years (13:12)
Productivity gains seen by customers and brokers (17:04)
We Are Dynamo,
Santosh, Ted, Barry, and Jon
Note: please add âdynamo@substack.comâ to your email client so you donât miss future issues due to aggressive spam filters.
Supply Chain đŚ
How the eComm Surge Will Reshape Carrier Strategies. Our friend, Alan Amling penned this piece on the future of last mile delivery. It makes some great points about the structure of the market and how the Big 3 might evolve their delivery operations in face of surging eComm and parcel volumes. The pre-holiday ramp has UPS Encouraging Shippers to Find Alternatives while DHL Anticipates 50% Peak Volume Increase.
IATA Stays Silent on Dynamic Load Factors for Air Cargo. Lobbying to help shippers and forwarders better understand air freight rates, Tiaca urges the air cargo industry to adopt dynamic load factors. The IATAâs silence alludes to the resistance of Tiacaâs proposal that would increase an understanding of aircraft utilization for buyers of air freight, government, and regulatory authorities. In Japan, a New Platform Digitalizating Supply Chain Documentation.
ATRI Outlines Top 10 Issues for Trucking Industry. A shortage of drivers leads as the primary issue plaguing the trucking industry in 2020. The ATRI says a number of drivers have left the industry due to the FMCSA Drug and Alcohol Clearinghouse taking effect this year. Insurance costs/availability appeared on the list for the first time in 15 years, ranking fourth on the carrier concern list and fifth overall. Other issues rounding out the top 10 are: driver compensation, truck parking, compliances, safety, and accountability (CSA), driver retention, tort reform, the economy, detention, and hours of service. On a lighthearted note, Mind Boggling Transportation World Records.
How COVID Shifts Thinking Around Supply Chains. A recent survey shows that 93% of manufacturing execs confirmed they are implementing or strengthening contingency plans to prepare for future disruptions. Results allude to a shift from lean, low-cost inventory supply chains to ones prioritizing stability and resilience. Execs also plan to focus less on sourcing from low-cost suppliers, in turn placing a heightened emphasis on a supplierâs ability to provide a more resilient and flexible process. As a result of COVID, Accenture, MIT Work Toward Supply Chain Stress Test.
Global Robot Sales Driven by Rise in Logistics Applications. Sales values of professional service robots increased 32% from 2018-2019, reaching $11.2B in sales globally. The most notable growth factors include smart factories, warehouse e-commerce, and medical logistics. As one of our portfolio founders said, "IFR seems to be getting more bullish than in prior years." Elsewhere in automation, Drones Could Be a Last Mile Solution.
The Business Case for Cargo Bikes. Recent years have seen FedEx, DHL, UPS, Amazon, DB Schenker, DPD, GLS, and Hermes all add various sized cargo bikes to their fleets. Some reasons why: theyâre quicker, provide greater energy efficiency, and have minimal carbon footprints. Cargo bikes could potentially provide a unique edge across smaller city-center first and last mile hubs as carriers commit to net carbon zero pledges and deal with tightening capacity among various modes of transportation. We're especially interested in autonomous cargo bikes- send us a note if this is you đ. Related, C-stores Play Catch Up With Last Mile Fulfillment.
Mobility đ
Waymoâs Data from 6.1M Miles of Self-Driving Tests. First reports from Waymoâs Phoenix, AZ tests indicate 18 crashes and 29 near-miss collisions during 2019 and the first nine months of 2020. Consisting of fender benders, vehicle swipes, and one T-bone collision, Waymo claims no one was seriously injured and ânearly allâ of the collisions were the fault of the other driver. Also, Daimler, Waymo Join Forces to Build AV Freightliner.
Future of Mobility Commission Unveiled. Qualcomm, FedEx, and auto executives will launch, The Future of Mobility - an organization dealing with complex questions surrounding the future of transportation including self-driving and electric vehicles. The group plans to propose a new regulatory framework to address a global transportation sector âon the cusp of a worldwide transition driven by shared, connected, autonomous, and electric technologiesâ with the ultimate goal of solving tough issues around mobility safety.
Continental Invests in AEye to Industrialize Long Distance Lidar. Continental acquires a minority share in AEye as the duo intends to jointly develop long distance lidar sensors and prepare them for automotive production by 2024. Aiming to be a solution for autonomous highway applications, Continental will pair its short-range lidar with AEyeâs lidar which can detect vehicles at a distance of 300m (328 yds) and pedestrians at 200m (219 yds). Meanwhile, Daimler Announces Partnership With Luminar.
The Startup Leading Americaâs eBike Revolution. Based in Seattle, Rad Power Bikes hasnât been able to keep up with pandemic induced demand. After expecting hard times resulting from shutdowns, sales actually tripled in April and by May the companyâs inventory was wiped out. Rad sells more than eBikes as it operates nine mobile service vans that will deliver and assemble bikes for a fee in Austin, Portland, Sacramento, Seattle, and Vancouver. The eBike revolution is here as Bike Suppliers Struggle to Fill Hiring Needs Necessary to Meet Surging Demand.
Kids Influence Parents EV and Hybrid Buying Decisions. A recent Peugeot UK survey shows 54.8% of children pushed their parents to be more environmentally conscious by switching to a hybrid or electrified vehicle. The adolescent influence may be working as 72.2% said they were consulted by their parents regarding large purchases like buying a new car or vacation. A first, EVs Outsell Diesel Cars Across Europe in September.
The State of Travel and Mobility Tech in Asia. Despite impacts from the pandemic, Asia's Travel and Mobility Tech landscape has experienced consistent growth and innovation in the last few years. The report from Lufthansa Innovation Hub touches on deals involving travel- and mobility-related startups, COVIDâs impact on the sector, and ranking, mapping, and profiling the most innovative and promising startups across Asia's Travel and Mobility Tech landscape. Back in the US, Transit Systems Must Get Creative to Rebuild Ridership.
Fundraises, M&A, Talent đ¸
Manna Raises Additional Capital from Dynamo, Greenman, Elkstone, and others. Manna is a Drone Delivery Service âin a boxâ for retailers in suburban and rural communities. Funds will be used to continue its go-to-market expansion.
WareIQ Raises $1.65M in Seed Capital Led by YC. Building on-demand fulfillment infrastructure for online sellers, WareIQ is an Amazon-like next day delivery for eCommerce companies. Ware will deploy the fresh capital to expand its network to tier 2 and tier 3 cities.
Tul Raises a $4M Seed Led by Vine Capital Management. Tul is a Bogota based supply chain logistics developer offering an application where users can buy hardware and construction products directly from their phone. Funding will be used to expand out of Bogota and into the Latin American market.
Canvass Analytics Raises $8.5M in Series A Capital Led by Yamaha Motor Ventures. The Toronto based company enables intelligent industrial operations by putting AI directly in the hands of plant operators - empowering them with data-driven insights to improve production processes and optimize assets â without requiring coding skills. Funding will expand the companyâs go-to-market efforts, accelerate its product development roadmap, and support its existing customer base.
Bipi Raises a âŹ10.5M Series B Led by Adevinta Ventures. Headquartered in Madrid, Bipi is Spainâs fastest growing car-as-a-service startup. With new funding, Bipi will further accelerate its growth in the Spanish market by hiring new talent, investing in technology, and entering new European markets including France.
Onfleet Secures $14M Series A Led by Kennet Partners. Based in San Francisco, Onfleet is an advanced last mile delivery platform powered by smartphone apps for drivers, a powerful modern web dashboard for dispatchers, and automatic notifications and real-time tracking for recipients. Funds will be used to broaden product offerings and expand its global footprint.
Outrider Raises $65M in Series B Funding Led by Koch Disruptive Technologies. Outrider automates all aspects of yard operations for logistics hubs, helps large enterprises improve safety and increase efficiency through the deployment of zero-emission freight transportation. Outrider will use the fresh capital to expand its system that moves trailers between loading docks and parking spots.
Shouqi Raises Series C. One of Chinaâs leading ride hailing service providers, Shouqi targets medium to high end markets in the country. A specific use or amount of capital was not detailed.
Company Building đ ď¸
Market Definitions and Tech Monopolies. Itâs interesting to see technology companies facing increased scrutiny from regulators with regard to antitrust. The irony is that most VCs look for such monopolistic characteristics (think Thielâs Zero to 1) as they fund upstart growth. Good thing the supply chainâs breadth and depth make it hard for any one business to face such issues even if they are successful to the tune of billions-of-dollars of market value.
How to Price Your SaaS Product. We have this discussion with all our portfolio companies as we test business models and mature what works. A must-read for any founder with SaaS - weâre happy to chat through how this might intersect with supply chain.
Exploring HaaS. As supply chain investors, we often see IoT or hardware embedded in business due to the physicality of problems in the space. The reality is that this adds a new dynamic around pricing, integrations, customer success, and on-going cash management. As thinking matures in our space, thereâs much to learn from the success/failures of hardware-driven companies from other sectors.
Who's Hiring? đŠâđť
Account Executive at WorkHound in Chattanooga, TN.
Senior Backend Engineer at Vizion in San Francisco, CA (remote ok).
Product Analyst at sennder in Berlin, Germany.
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.