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 💭
We wish everyone a Happy Thanksgiving. If you’re looking to mix up the dinner table conversation, have a listen to Jon and Santosh on the latest FoSC podcast discussing sustainability.
We Are Dynamo,
Santosh, Jon, Barry, Ted, Katie, Clay, Skyler, and Lukas
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Supply Chain 📦
Tesco To Partner With Gorillas For Quick Customer Delivery. UK’s grocer giant is looking to offer faster access to their products by starting a pilot partnership with instant delivery provider Gorillas. While Tesco’s products are already available for Gorilla users, this pilot partnership will establish 5 microfulfillment sites at Tesco locations. Tesco executive Jason Tarry shared, “We are committed to being easily the most convenient choice for our customers, enabling them to shop whenever and however they want.” Tesco already has a 60-minute delivery service named “Whoosh” which is offered around 50 locations and 100 by end of the year. In other related news, Meijer To Offer Free Grocery Delivery At Cincinnati & Dayton Locations while Chase Adds Credit Benefits For Gopuff Users.
Appeals Court Finds Trailers Not Covered By GHG Regulation. In 2016 a new rule was created named the “Greenhouse Gas Emissions & Fuel Efficiency Standards for Medium-and Heavy-duty Vehicles-Phase 2” through the collaboration of the EPA and NHTSA. Within this rule, it required trailer manufacturers to utilize known aero-dynamic technologies such as side skirts and automatic tire pressure systems on newly built trailers. Following the creation of the rule, the Truck Trailer Manufacturers Association countered in court to dismiss the specifications around trailers as the newfound statute is directed towards vehicles or tractors, not trailers. The Truck Trailer Manufacturers Association was able to win their case, although policymakers are already directing efforts to articulate new statutes that would tie the tractor and trailers closer together. In other trucking news, Trucking Fleets Will Continue To Enjoy Strong Demand Into 2022 as Pitney Bowes Increases Trucking Capacity To Reduce Risk In The Spot Market.
Congestion On The Tarmac as Air Shippers Experience Growing Backlog. With ports backed up, beneficial cargo owners look to find alternative routes to getting their goods into the country, many turning to the air. This shift in demand is catching up to air carriers as cargo in LAX and JFK is now being delayed up to two weeks. This has led cargo to pile up on the tarmac leading to dwindling excess capacity and lost cargo that further delays shipments. Moreover, this has led to delays in exports which can be seen as China Cargo Airlines indicated delays of up to 10 days for cargo recovery. Labor shortages are attributed to the slowdown and have led airports to reduce the free storage time for shippers and implement earlier close-outs for exports. Over the ocean, Federal Maritime Commission To Study Data On Improving TEU Delivery Time.
🌟Wayfair’s Logistics Service Fuels Capacity Growth and Boosts Carrier Relations. "‘We can take possession of products in Asia, break the shipments in bulk to go to different locations, arrange for transport over the water and to population-adjacent fulfillment centers,’ Shah said. ‘We optimize the supply chain for our suppliers who cannot do it on their own.’” On the shipper front, Target, TJX Report Strong Sales & Prepare For Black Friday and Nvidia CEO: Supply Chain Mess ‘Was A Wake-Up Call For Everybody’.
California Increases Truck Weight Limit to Increase Port Container Flow. With container yards piling up across California ports, regulators have increased the trucking weight limit by 8K pounds to 88K. This weight lift will be in the act through June 30th and was put into place through the partnership of a Washington-led task force and local authorities. Governor Newsom believes that it may not provide immediate relief but help in the long run for industrial and manufacturers waiting on containers. In the realm of AVs, Waymo Becomes Second Partner To Test Autonomous Big Rigs For UPS.
Fresh Food Supply Chains Facing Growing Disruptions. North America’s fresh produce industry shared in a joint statement that since the beginning of the pandemic “supply chains threaten our food security and the long-term economic viability of the North American fresh produce sector.” Disruptions described in the statement included port congestion, logistics price increases, labor shortages which have been experienced across all industries. Although, specific threats to produce growers include consumer stockpiling and input shortages. Of the most concerning is input shortages as goods such as fertilizers, pesticides and packaging are paramount to having perpetual flow of food. Delays such as this will begin to threaten planting season and show potential of disrupting growing cycles. Other food supply chain news, Oatly’s Shares Drop With Slow Revenue Tied to Supply Chain Constraints while Starbucks Outlines Sustainable Dairy Initiatives.
FedEx Forecast Calls For Holiday Package Shipments to Increase 10%. An internal email from within FedEx said that the parcel carrier would move about 100M more packages this holiday season compared to the same time in 2019. Consumers are ordering gifts this year much earlier to avoid having to deal with empty shelves. It also looks like the shift to eCommerce will remain permanent. Before COVID, FedEx predicted it would move 100M boxes a day by 2026. This projection is now expected to take place by 2022, with eCommerce making up 88% of growth. On another note, Empty Shipping Containers Are Creating Additional Stress For US and Foreign Exporters and America’s Booming Demand Shattered Supply Chains.
Mobility 🚗
How Chip Shortage Impacts Car Buyer Behavior. Cox Automotive conducted a survey to quantify trends taking place within car dealerships as the chip shortage continues to throw quite the kink in auto sales this year. Back in April, 42% of in-market shoppers were willing to pay a 13% premium above MSRP, and while this number dropped in August to 35%, it confirms the fact that demand influences pricing currently, not suggested retail price. The research also found that today 48% of in-market shoppers are likely to postpone their purchase with half willing to delay the purchase by 6 months or less. For more on the survey, click the link above, otherwise check out As More Americans Choose EVs, Price and Range Continue to Hold Back the Market.
Airlines Are Gearing Up For a Busier - and Costlier - Holiday Season as Fuel Prices Rise. US airline bookings are up 78% from last year and 3% higher than 2019 which typically points to industry recovery. However, this could be threatened by a rise in fuel costs which have risen by nearly 25% over the last 3 months. Airlines are doing everything in their power to monetize this rampant demand by balancing staff levels in comparison to the number of flights scheduled. Since July, many US carriers, including American, Southwest, and Spirit, have experienced mass cancellations thanks in part to labor shortages. In related news, check out Airlines Are Rewriting the Rules on Frequent-Flier Programs—Again and Thanksgiving Travel: Airlines Prep For Onslaught Of Passengers Amid Threat Of Rain And Snow.
🌟Ford, GM Step Into Chip Business. If you ask Santosh, this is the most important news for the week as Ford and GM are prioritizing control of chip production in a supply-constrained environment against a backdrop of growing EV demand. For more on this topic, GM Working On New Microcontrollers To Curb Chip Shortage and Ford Moves to Ensure Supply of Chips and Guide Their Design.
Apple Accelerates Work on Car Project, Aiming for Fully Autonomous Vehicle. For years now, Project Titan, Apple’s attempt at developing a vehicle, has encountered setback after setback including massive executive turnover and canceled strategies. As of Thursday, Apple announced that it’s car division is pivoting focus on self-driving vehicles that would involve no human interaction whatsoever. The launch of the car is set to take place in 2025, although hitting that target depends on Apple’s ability to master the technology that market leaders, like Waymo and Uber, have really struggled with. Don’t believe us? Check out We Tried Tesla's 'Full Self-Driving.' Here's What Happened to get a grasp on the current state of autonomous tech.
UK's Arrival Unveils Pre-Production Prototype Electric Bus. The bus will start running on roads within a few weeks and is set to begin production in South Carolina in Q2 of 2022. Arrival was able to lower the cost of production by strategically selecting lightweight, durable plastic body panels as opposed to traditional steel or aluminum which allows the startup to sell the bus at the same price of its diesel counterpart. There’s no question that the electric bus market will experience great growth in the future, especially after the US Congress recently passed a $5.25B infrastructure plan for electric buses which is a 4038% increase from the $130M the government spent on electric transit back in 2020. For more on green public transit, US National Parks To Offer Look Into Green-Friendly Transit and MTA Buys 60 Fully Electric Buses For $1M Each; On Path To Biggest E-Bus Fleet In North America.
Daimler To Produce First In-House Electric Motor At Berlin Plant. Autoworkers over in the German capital are exhaling in a sigh of relief. Back in September, Daimler announced that the Berlin site would end production of its 6-cylinder diesel motor within a year and offered retraining in software development for those who were interested. The new motor, designed by British-based YASA, weighs a tiny portion of the diesel engine and boosts EV range by 7%. Daimler is expected to pour over 100M euros into the plant over the next 6 years. In similar news, Toyota Eyes North Carolina For First US Battery Plant, Report Says and VW Confirms 8% Battery Capacity Degradation In This ID.3.
Boeing Dreamliner Defects Bog Down Production. The most recent slowdown was caused by what aerospace manufacturers are calling a door issue and is expected to last for a few weeks. This halt is a part of a series of production issues that have taken place over the past year. Most notably, the airline manufacturer has experienced pressure from air-safety regulators after two 737 plane crashes took the lives of 346 people in 2018 and 2019. Boeing is currently producing 2 Dreamliners a month, which is 3 off from its 5 unit monthly quota.
Fundraises and M&A 💸
Coros Raises $6.1M Led By Dynamo Ventures. Coros is a logistic firm that provides transportation, warehousing, fulfillment, global logistics, and supply chain services worldwide. Additional investors include Susa Ventures, Greenhawk Capital, Fontinalis Partners, Engage VC as well as Sean Henry and Steve Swan of STORD.
SVT Robotics Raises $25M Led By Tiger Global. Dynamo portco, SVT Robotics is a warehouse automation software intended to become a bridge between businesses and automation. Additional investors include Prologis Ventures, Dynamo Ventures, Cowboy Ventures, and Schematic Ventures. SVT says that it’ll use the new capital to bolster its product R&D and expand its customer outreach efforts.
Amphora Raises $1M Led By Kapita. Amphora is a company that assists SMBs with technology-driven logistics solutions. Additional investors include BStartup, Encomenda VC, Abac Capital.
Shuttlers Raises $1.6M Led By VestedWorld. Shuttlers is a platform that offers mobility solutions by providing scheduled bus-sharing services for professionals within the region. Additionally, Interswitch, Rising Tide Africa, Launch Africa, EchoVC, Consonance Investment, CcHub Syndicate, CMC 21 & Alsa, ShEquity, Five35, Sakore and Nikky Taurus also participated in the round.
noissue Raises $10M Led ByFelix Capitals. noissue, a New Zealand-based global packaging platform, wants to make sustainable packaging accessible to businesses of all sizes.
GizTix Raises $10M Led By Bualuang Ventures. GIZTIX is an integrated logistics platform for solving problems on speed and fragmented processes of truck sourcing. The round also saw participation from AddVentures, the VC arm of Thailand-based conglomerate SCG, as well as from KK Fund.
Machina Labs Raises $16M Led By Innovation Endeavors. Machina Labs is a mechanical and industrial engineering & manufacturing firm that unlocks manufacturing through AI & machine learning. Additional investors include Congruent Ventures and Embark Ventures.
Helm.ai Raises $26M Led By Amplo. Helm.ai is a scalable artificial intelligence for autonomous vehicles. Additional investors include MPartners, Base Capital Funding, and Freeman Group with participation from ACVC, One Way Ventures, Binnacle Partners, and individual investors.
Flytrex Raises $40M Led By BRM Group. Flytrex develops drone delivery systems that simplify deliveries and enhance efficiency by shortening delivery times and lowering costs. Additional investors include OurCrowd, Lukasz Gadowski, and existing investors Benhamou Global Ventures (BGV), btov, and BackBone Ventures. The company intends to use the funds to ramp up expansion throughout the US and advance partnerships with retailers and quick-service restaurants (QSRs).
Packhelp Raises €40M Led By Infravia Growth. Packhelp simplifies creating, ordering, and managing custom and sustainable packaging. Trusted by more than 50 000 companies. Additional investors include PortfoLion, FJ Labs, and the European Investment Bank and previous investors Speedinvest, ProFounders, Market One Capital, Inovo, White Star Capital, and business angels. The company intends to use the funds to develop new sustainable products and services, grow operations in the UK and Europe, M&As, as well as develop a new offering for enterprise customers.
8fig Raises $50M Led By Battery Ventures. 8fig provides a development planning and funding platform to help eCommerce enterprises. Additional investors include LocalGlobe and Matt Robinson. As part of the round, Silicon Valley Bank will also provide a credit facility. The company will use the funds to accelerate growth and expand its lending capabilities to more eCommerce businesses.
Nexar Raises $53M Led By Qumra Capital. Nexar develops software to protect the user and their business against car crashes and road casualties. Additional investors include State Farm Ventures, Catalyst Investments, Banca Generali, Valor, Atreides Management, Corner Ventures, Regah Ventures, and Aleph.
Tevva Raises $57M with Undisclosed Investors. A leading British technology company and manufacturer, best known for its zero-emission Battery Electric and H2FC range-extended vehicles. The round was an oversubscribed private placement from new and existing investors to fit out its brand-new London-based production facility and rapidly scale up manufacturing.
Zoomo Raises $60M Led By Grok Ventures. Zoomo is an electric bike rental company that can be accessed via subscription for delivery riders. Additionally Viola Credit. Skip Capital and ArcTern Ventures, as well as existing investors AirTree Ventures, the Clean Energy Finance Corporation (CEFC), Contrarian Ventures, and Maniv Mobility, participated in the funding. The company intends to use the funds to expand its operations into new cities and countries, deepen software integration with its customers, and finalize the development of its vehicles.
Monarch Tractor Raises $61M Led By Astanor Ventures. Monarch Tractor offers a platform that combines mechanization, automation, and data analysis to enhance farmers’ existing operations. Additional investors include CNH Industrial, At One Ventures, and Trimble Ventures. The company intends to use the funds to accelerate production and deployment of its tractor, scaling its sales, service, and manufacturing footprint; expanding its product offerings, and launching international pilot test programs for regional market validation.
Faire Raises $400M Co-Led By co-led by Durable Capital Partners, D1 Capital Partners and Dragoneer. Faire is a company that helps retailers find and buy wholesale merchandise for their stores. Additional investors include Y Combinator, Wellington Management, Velocity, Sequoia Capital, Norwest Venture Partners, Lightspeed Venture Partners, Khosla Ventures.
eScooter Startup Tier Buys Nextbike to Double Down On Commitment To eBikes. Tier and Nextbike did not disclose the terms of the deal, but Tier would have funded the acquisition with the $200 million all-equity Series D led by Softbank Vision Fund 2 it raised last month to scale its multi-modal market presence globally and pursue strategic investments and acquisitions. The move signals Tier’s commitment to the same multi-modal approach that competitors like Lime and Voi have followed to take advantage of existing market share.
SPAC Radar 📡
Integrated Rail and Resources Acquisition Corp. Announces Closing of $230M IPO. While the Company may pursue an initial business combination target in any industry, it currently intends to concentrate its search for a target business operating in bulk commodities, such as North American railroad companies that transport bulk commodities, terminal companies that transload bulk commodities to and from railroads and pipelines, trucks, and ports, and companies that produce bulk commodities.
Company Building 🛠️
Fred Wilson on Seed Rounds At $100M Post Money. Turns out that valuations still matter for investors and from our experience, affords (or limits) optionality for the startup.
Reframing Technical Debt. “If we bake addressing tech debt into our plans, could it become an opportunity to build abundance into our systems?”
Keybanc: Private SaaS Company Survey. Some great data to answer questions like “what is good growth? or “what should retention look like as I scale?”
Who's Hiring? 👩💻
Software Engineer at Coros in Mountain View, CA (remote ok).
SDR at Backbone AI in New York, NY (remote ok).
Backend Engineer at Factored Quality in Brooklyn, NY (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.