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
Itâs Founders Camp week! Stay on top of social media for the latest and greatest from Chattanooga, TN. A big shout out to our sponsors Chick-fil-a, Lineage Logistics, Schneider National as well as Freightwaves, EPB, Market Street Partners, and Nelson Mullins for the support.
We Are Dynamo,
Santosh, Jon, Barry, Ted, Katie, Clay, Skyler, and Lukas
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Supply Chain đŚ
Autonomous Drone Networks Present Sustainable Benefits. The creation of new infrastructure and services in Rwanda show that autonomous drone networks could be the next step towards âgreenâ supply chains. In Rwanda, Zipline has been performing deliveries of blood, vaccines and other medical equipment to rural parts of Africa over the last five years. As part of their five-year review and through analyzing real deliveries they concluded that their drones could perform the same service while creating 99% fewer emissions than a van. Moreover, their drones created 94% fewer emissions than an electric vehicle. From another source, the Virginia Tech Office of Economic development shared in 2020 that using drones to perform deliveries in metro areas could reduce 294M miles of road use, 580 car crashes, and eliminate 113K tonnes of carbon per year. That is the equivalent of planting 46K acres of new forest every year. In the world of drones, check out Dynamo-portfolio company Manna Aero Pitch a Five-year Old at Web Summit.
Making Post Pandemic Supply Chains Sustainable. With mounting pressure to make positive strides towards climate change, companies are more focused than ever to make their supply chains âgreenâ. A survey performed by Coyote Logistics of 250 global shippers from various countries and organizations about sustainability revealed 71% have established sustainability goals for their supply chains. It also illuminated the industries with the largest sustainable focus are automotive, food & beverage, industrial goods, and technology. When asked about what practices will be primarily adopted the most common themes were alternative fuels and fuel optimization backed by the fleet replacement for alternative and electric vehicles. Others included optimization for routing and forecasting but also improved procurement efforts by seeking environmental partners. In other sustainable supply chain news, Wise Systems Releases Survey on Sustainability and Japanese Designs for Large Ammonia-Fueled Carrier.Â
đSteve Viscelli & Lex Fridman Discuss Trucking And The American Dream. Steve Viscelli interviewed hundreds of truckers while writing his first book, The Big Rig: Trucking and the Decline of the American Dream. Moreover, he became a truck driver for 6 months, allowing him to share how the truck driver market is massively fragmented with wide pay differentials. The two also touched on the current state of affairs in the industry, specifically the labor market. Viscelli shared how there are currently about 145K jobs for California drivers and over 435K licensed drivers. With this gap, he believes the psychological struggles developed in an isolated job are one of the key reasons many donât return to the road. Elsewhere, TuSimple Prepares For Autonomous Runs For UPS Hubs while Kroger is Taking On Publix in Florida Without Opening A Single Grocery Store.
3PL Providers Boost Order Volume in 2021. In a survey by 3PL Central of over 200 warehouse 3PLs, 85% experienced order volume grow with over â growing by over 50%. On another note, over half of the providers shared they are facing âsignificantly increasingâ labor costs. This has led more service providers to lean on technology, with 84% of the survey members sharing they have implemented a WMS to be a central voice for their business. For others, implementing additional systems to integrate with existing WMS to further capabilities has been a strategy for reducing dependency on the dwindling workforce. Adoptions in such areas have allowed more than half of those surveyed to be able to deliver fulfillment in less than 90 minutes. In other fulfillment news, Amazon Looks to Hire 500+ for El Paso Fulfillment Center and Berkshire Grey Expands Availability of Robotic Fulfillment Solution
The CEO Playbook Says Farewell to Offshoring & Outsourcing. The slow down of supply chains have forced strategists to fray away from globalization in favor of resilience. Raw material processors such as Majestic Steel USA, who produces flat-rolled steel for various industries, have added locations in four new states in order to reduce the spatial complexity of their supply chain. Along the same line, Sherwin-Williams acquired one of its suppliers in the gulf of Mexico, highlighting again how operators are tightening the rains of their value chain. Also, Rates For Boxship Charters Drop For First Time in 2021 & Project Aims to Reverse Offshoring.Â
Electric Cargo Bike Delivery Hubs May Be Coming To Portland. The city is considering developing micro delivery hubs to help reduce congestion and promote sustainability. The vision would be to reduce road blockage and vehicle overcrowding in the downtown area. Downtowns are commonly built on older city plans, have small lanes and limited parking that leads to whole backlogs of traffic when delivery vehicles block a lane for deliveries. While micromobility offers more flexibility for parking and navigating. Moreover, the environmental benefits from using lightweight electric bikes could significantly eliminate the use of fossil fuels for urban deliveries, but also help drivers spend less time in traffic. In other last-mile news, Dynamo-portfolio company, Coros on Why Last Mile Delivery Begins with Getting The First Mile Right.
Cargo Ship Labor Shortages Emerge As New Bottleneck. Carriers have been experiencing a retraction in the number of seafarersâ applications that has been causing further shipping delays. Of the suspected leading factors is the mental toll from frequent travel to countries deemed high risk for COVID-19. This has created a competitive market for employers who have responded by increasing pay. The pain points for carriers donât stop there as idle time grows to over 25 hours making it more costly than ever to load or offload cargo. Other chaos on the water, Evergreen Sets The Bar Very Low With Schedule Reliability of Just 13.2%.Â
Mobility đ
Tesla Recalls Nearly 12,000 US Vehicles Over Software Communication Error. The error may cause a false forward-collision warning or, even worse, an unexpected activation of the emergency brakes, according to the NHTSA. The cause of the issue was a software communication disconnect between two onboard chips that prompted an issue that could produce ânegative object velocity detections when the other vehicles are present. The cost of the recall is still unknown. In related news, Tesla Opens Charging for Third Parties in the Netherlands while GM To Extend Chevrolet Bolt Plant Shutdown By Three Weeks.
Why Your Car Will Become Even More Like An iPhone. For centuries the automotive industry has operated with the same business model: sell a car and hope the customer returns a few years later. Today, as vehicles become more defined by software, more opportunities are popping up that allow automakers to receive added revenue through subscription services. Results have been mixed/less successful with BMW having to walk back their subscription after attempting to charge for Apple CarPlay. For more on future auto tech, check out Automated Parking Key To Developing AV Trust, Suppliers Say.
đCruise Launches Driverless Robotaxi Service In San Francisco. Kevin Vogt, Cruiseâs CEO, became the first person ever to ride in an autonomous taxi on the streets of SF. Back in October, Cruise received a permit that allows the AV company to deploy its vehicles without a human on board as well as charge delivery fees. However, Cruise cannot charge for robotaxi services until it submits the final permit to the California Public Utilities Commission. For now, only Cruise employees and certain public officials will be able to ride in the driverless AVs. Also, consider reading Waymo AVs Will Begin Mapping NYCâs Streets.
Ford Is First Major Us Automaker To Mandate Vaccines. Employees have until December 8 to be fully vaccinated. Those who refuse and do not have an approved religious or medical exemption could be put on paid leave for 30 days before their job protection expires. The automakerâs previous policy was to encourage the vaccine of its entire workforce rather than enforce it. The majority of Fordâs workforce is represented by unions and will not fall under the mandate immediately. For more on vaccines, consider reading Auto Industry Vaccine Mandates A Mixed Bag As Federal Rules Loom and Mercedes-Benz To Require US Employee Vaccinations By Jan. 4.
SAP to Transition 27,000-Vehicle Fleet to Electric Cars by 2030. Starting in 2025, SAP will no longer order ICE vehicles for its corporate fleet. EVs currently makeup about 20% of SAPâs company cars. The software company also plans on spending an undisclosed amount on charging infrastructure at and around its offices. SAP CFO Luka Mucic anticipates that financial benefits, such as lower repair or fuel costs, will follow alongside the reduction in emissions. In other EV news, VW CEO Faces German Workers As Tesla Tensions Flare Again and Tesla And Hertz Reportedly Have A Disagreement Over How Fast Tesla Can Deliver 100,000 Electric Cars.
Scaling EV Infrastructure To Meet Net-Zero Targets. A few years ago, consumers had two concerns about EVs: price point and battery life. While these issues are being addressed today, two more issues have arisen thatâll hamper EV adoption: (1) demand for EVs is soon expected to outpace the ramp-up of battery cell production and (2) fast-charging infrastructure has to scale in order to avoid a bottleneck of growth. This has led to an estimated $500B needed to build effective infrastructure for public and commercial transport. Other key objectives identified were enabling faster charging to increase throughput and ensuring a seamless customer experience. In related news, Bidenâs Infrastructure Package Will Bring Billions To the EV Market.
Micromobility & Data Privacy. The New Urban Mobility Alliance recently shared its beliefs and principles around micro-mobility data. The group includes members from private companies, public companies, academics, and nonprofits to promote privacy for those using bikes and e-scooters to navigate urban areas. This includes what data is collected, acceptable applications of data, and storage. Methods to create privacy is to only collect location data at certain periods of a trip, maintain anonymity of the user and only utilize it for planning purposes. Elsewhere, Uber Makes First Operating Profit As Driver Shortage Eases & Carvana, Struggling With Robust Trade-Ins, Pandemic, Posts Q3 Loss.
Fundraises and M&A đ¸
BasiGo Raises $1M Led By Climate Capital. BasiGo is an eMobility start-up looking to bring electric buses to Nairobi by sourcing components from BYD and locally assembling them. The startup is looking to build a foundation in Kenya, then expand into other parts of Africa. Additional investors include Third Derivative, an accelerator focused on climate-technology.Â
ShipBlu Raises $2.4M Led By Nama Ventures. ShipBlu operates a platform that is taking on e-commerce shipping and fulfillment for small brands in Egypt. The newly acquired capital will be invested to help grow its service offering and coverage across Egypt. Additional investors include 1984 Ventures, Orange Ventures, Starling Ventures and angel investors.
MilkRun Raises $6M Led By Spark Capital. MilkRun is an online marketplace and grocery delivery service that connects consumers and chefs directly with hundreds of local farmers. Existing investors Revolutionâs Rise of the Rest Seed Fund, Social Impact Capital and Congruent VC also participated in the round.
Opibus Raises $7.5M Led By At One Ventures. This Kenya-based startup is converting diesel and electric buses and motorcycles to electric powertrains. Opibus is currently taking preorders for their $1300 motorcycle but has also performed conversions for mining fleet operators. The funding will be deployed to begin mass production of vehicles.Â
Plan A Raises $10M Co-Led By HV Capital and Keen Venture Partners. Plan A is a GreenTech company that develops a carbon quantification platform to measure, monitor, and reduce environmental footprint. Previous investors Demeter IM and coparion also participated. The funding will be used to open a new office in London and scale operations. Â
Spartan Radar Raises $15M Led By Prime Movers Labure Partners. Spartan Radar is a provider of biomimetic automotive radar solutions. The company intends to use the funds to expand features and make key hires. Additional investors include 8VC and Mac VC.Â
Selazar Raises £20M from Undisclosed Lead Investor. Selazar provides a cloud-based supply chain and logistics platform for eCommerce retailers. The company will use the investment to enhance its UK network and fund its expansion into Europe, the US, and Latin America. Also, the funding will see Selazar offer additional e-commerce fulfilment technology and financial services to customers. The new capital injection adds to an initial seed investment from Foresight Group, Invest Northern Ireland, and angel investors in November 2019.
Sofar Ocean Raises $39M Led By Union Square Ventures and the Foundry Group. Sofar Ocean is building accessible ocean sensing and exploration tools for collecting data on the ocean environment and vessel visibility. The funds will help expand the number of ocean sensors and expand operations.Â
42Dot Raises $88.5M Led By Shinhan Financial Group. 42dot is a technology company pioneering frictionless and autonomous mobility services through the development of UMOS. The Seoul-based company will use the proceeds to advance its AI-based technology, establish joint ventures and hire staff. Additional investors include Lotte Rental, Lotte Ventures, STIC Ventures, We Ventures, DA Value Investment.Â
Autobrains Raises $101M Led By Temasek. Autobrains is a solution for the next generation of vehicles and mobility with their first-of-its-kind self-learning artificial intelligence technology for assisted and autonomous driving. Additional participants in the round included new investors Knorr-Bremse AG, as well as existing investor BMW and long-term strategic partner, German automotive part manufacturer Continental AG.
Momenta Raise $200M Led By SAIC Motor Corp. Momenta is a developer of autonomous driving technology designed to make real-time decisions from sensory data. Investors such as Toyota and GM are crucial partners for collecting billions of data points for their algorithms. Billionaire Jack Maâs Yunfeng Capital also invested in the round.Â
Nuro Raises $600M Led By Tiger Global. Nuro develops and operates a fleet of electric self-driving vehicles that are built to deliver assorted local goods. With the boost of this new funding, they are turning their focus to commercializing and scaling the production of their third-generation vehicle at their new facility in Southern Nevada.
SoftBank-Backed Indian Logistics Startup Delhivery Files For $1B IPO. Delhivery is a supply chain services company that provides transportation, warehousing, freight, and order fulfillment services. The 10-year-old startup plans to issue new shares worth $669 million, while the rest of the capital will be utilized to buy existing shares. Investors in the company include SoftBank, Tiger Global Management, Times Internet, The Carlyle Group, Steadview Capital , and Addition.
American Eagle Outfitters to Acquire Quiet Logistics to Enhance Supply Chain Capabilities. American Eagle Outfitters announced it has agreed to acquire Quiet Logistics and other unnamed strategic investments, for $350 million in cash. The move marks the next step in AEOâs ongoing supply chain transformation that sees it in-source more capabilities including Quietâs automation-centric fulfillment models.
Tesla Confirmed Acquisition of Colorado-Based Battery Startup SiILion. SiLiion specifically brings advanced silicon anode know-how to Tesla.
SPAC Radar đĄ
Aurora Is Now A Publicly Traded Company. ow trading on the NYSE under the ticker âAUR,â Aurora joins a parade of mobility companies in going public via SPAC. The SPAC provided Aurora with $1.8B in cash to deliver a subscription model for their self-driving trucks in 2023 and autonomous cars in 2024.
Company Building đ ď¸
Why More SaaS Companies Are Adopting Usage-Based Pricing. Weâre seeing more supply chain software companies experiment and implement concepts around usage-based pricing. With buyers who are less willing to experiment or cultures that arenât as risk-taking with startups, this model helps align towards mutual success - a âyou win, I winâ mentality.
25 Tips for Running Executive Meetings. Thereâs nothing worse than a poorly-run or objective-less meeting. Itâs interesting to think of major meetings from the mindset of a designer - maximizing the experience and impact for those involved. In a remote or in-person world, this perspective is also of interest - âSome of the best meetings are the ones where there isnât a lot to cover because those items are getting covered in other communication mechanisms. That gives you valuable unstructured time as a group to dig into an issue you werenât expecting.â
20 Mental Models and Frameworks. We particularly lean on the Eisenhower Decision Matrix and Kat Coleâs Pygmalion Effect. Check it out for yourself.
Who's Hiring? đŠâđť
Technical Writer at Nextmv in Philadelphia, PA (remote ok).
Site Reliability Engineer at Coros in Mountain View, CA (remote ok).
Application Engineer at Vizion in Atlanta, GA (remote ok).
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.