Dynamo Dispatch (2023/09/25)

Issue 251 | ZeroAvia, Mapbox, Harbinger

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 💭

In reflecting upon a busy climate week in New York, the supply chain’s increasing prominence in conversations is notable, driven by increased customer scrutiny of sustainability alongside rising demand for goods. Particularly with the advancing emphasis on measuring and reducing Scope 3 emissions — the emissions that a firm is responsible for indirectly along its value chain — solutions for scaling sustainability within supply chains are taking center stage.

On that topic, key headlines this week include Apple’s progress on decarbonizing its supply chain via its Supplier Clean Energy Program, takeaways from the first Regenerative Fashion Conference on how to bring fashion supply chains within planetary boundaries, and more.

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We Are Dynamo,

Madelyn, Derrek, and the rest of the Dynamo team

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Supply Chain 📦

⭐ Waabi and Uber Freight Partner to Accelerate Autonomous Trucking. Uberfreight has acquired billions of miles of driverless capacity from autonomous trucking startup Waabi. Waabi’s test fleet will begin moving goods between Dallas and Houston as it rolls out commercial pilots with Uber Freight network shippers, with the aim of quickly expanding beyond these geographies. The partnership is highly integrated, connecting the software systems of both companies and functioning as a “Driver-as-a-Service” bundle by providing carriers with everything from transfer hubs, load matching, roadside assistance, and maintenance. While the autonomous trucking space has seen a number of shutdowns over recent years, partnerships such as this one demonstrate how new, innovative players are filling the gaps and propelling the market forward. Also, California Governor Vetoes Bill Banning Robotrucks Without Safety Drivers and completely unrelated, Pentagon Makes First Major Awards Under Chips Act.

More than 300 Apple Suppliers Have Committed to Clean Energy. Apple continues on its journey to a carbon-neutral supply chain through its “Supplier Clean Energy Program”. Thanks to the new commitment of an additional 50 producers to use clean energy in their operations, 90% of Apple’s direct manufacturing spend is now covered under this decarbonization program. The electronics giant’s efforts in this space are paving the way for others to decarbonize their own supply chains with increased pressure both upstream and downstream, and knock-on effects for other users of Apple’s suppliers. Related, California Truckers Race To Buy Diesel Rigs Ahead Of New Zero-Emission Rule and Can Fashion Future-Proof its Supply Chains?

Where’s the Signal? Warehouse Robots Are Searching for Stronger Internet Connections. As warehouses continue to adopt an increasing level of robotics and automation, access to fast and reliable internet is becoming a key concern. While some logistics companies are able to simply call their internet provider and upgrade their bandwidth, some are having to invest in fiber-optic cable lines, antennas, and server rooms. Given a drop in connection can bring operations to a stop in these highly automated centers, expect to see a greater degree of focus on internet capacity from logistics companies. Related, Logistics Robots Coming into Wider Use in Japan, and in more warehousing news, Boxbot Pivots from Last-mile Trucks to Robotical Parcel Storage.

Papa Johns, Little Caesars take to the skies with Flytrex Autonomous Delivery. Drones as a last-mile solution continue to see expansion, with the latest news that Flytrex will now deploy its delivery services with brands such as Unilever’s The Ice Cream Shop, Papa Johns, Freddy’s Frozen Custard and Steakburgers, and Little Caesars. Deliveries in these partnerships will be fully autonomous: workers will attach food to orders to drop down wires from the drone, which will then fly to customers’ homes to deliver the orders. Flytrex currently serves four communities and has grown to reach 95K customers last year. As players in this space continue to expand their reach, drones keep pace to become a commonplace last-mile delivery solution. On that point, US Grants First Commercial Licences for Long-Distance Drone Flights.

Walmart Wants Employees to Make More Last-mile Deliveries. The lion’s share of Walmart’s delivery volume is currently handled by independent contractors but the company is looking to change that as it builds out its last-mile network. Walmart will grow its third-party fulfillment capabilities in-house, building a larger vehicle fleet and encouraging more of its 1.6M employees to deliver orders to and from their shifts. Walmart originally launched this employee delivery program in 2017 but quickly ended it a year later as employees were difficult to convince to use their own cars and insurance policies for Walmart activities. However, with the growth in eComm, Walmart is re-launching the practice as even a small share of its staff making deliveries makes a difference. These efforts demonstrate the lengths retailers will go to in order to solve the challenging last-mile logistics process. Also, Amazon is Hiring 250,000 Employees for the Holidays, and Making its Largest Ever Annual Investment in U.S. Hourly Wages.

Mobility 🚗

⭐ ”We’re In the Abyss”: How the UAW Strike Could Hit the Economy. While the UAW strike is currently limited to one plant each across the Big 3 automakers, the economic impact of a full 10-day strike could exceed $5B. If that extends to a month, it would likely begin to eat into the automakers’ cash holdings as layoffs have already begun. As threats of additional strikes escalate, the auto market should begin bracing for volatility such as higher car prices. For more strike coverage, UAW Strike Set to Hit Deep Into the Industry’s Supply Base, UAW Is Ready To Strike For Months If Needed, and Wider UAW Strikes Impact Will Spill Over to Steelmakers.

Why Can’t Americans Buy Cheap Chinese EVs. In the US, car buyers have about 50 EV options to choose from while Europe has double that, and China almost triple. That means fewer options for smaller, cheaper EVs in the US as automakers focus on the more profitable trucks, SUVs, and premium models. China has been the leader in manufacturing small and affordable EVs, exporting many to the UK market, but high US tariffs — upwards of 27.5% — and other logistical details have made the US market fully unattractive. Tying this back to the UAW strikes, agreements to higher pay will likely mean even fewer options at even higher prices, so it’s unlikely we’ll see this trend reverse. In other international news, Indonesia’s EV Battery Industry Dream Hitting Obstacles From Lithium Negotiations with US and Spain’s Ministry of Industry Supports Two Battery Plants with Subsidies

US Plan Envisions Factories in Africa for Surging EV Battery Demand. The Biden administration has signed an agreement with Congo and Zambia — both rich in minerals essential to battery development — to develop an electric battery supply chain that’ll build a sustainable industry in Africa. It comes not without controversy, as Amnesty International released a report days before the agreement that the cobalt and copper mining industry is leading to “grievous human rights abuses” and “forced eviction of entire communities”. However, the US seems unlikely to intervene, instead hoping that this agreement will help it catch up in the global race against China for the EV battery market.

EV Sales Growth Signals Oil Demand Peak, So Why is the Oil Industry Doubling Down on Production. With the rapid growth of EV sales, it’s projected that the global demand for oil will peak by 2030. However, major oil companies still plan to increase production and the US Energy Information Administration forecasts continued demand growth. It’s likely explained by the “green paradox” of rationally deciding to extract these resources as quickly as possible to maximize profit before future market value decline. That means there’ll be continued investments in fossil fuel exploration and infrastructure expansion despite the global move towards greener energy. As evidence of the delicate balance, Auto Industry Slams Britain’s Petrol Car Ban Delay and Confusion.

BMW, Ford, and Honda Partner to Create ChargeScape EV Grid Services. BMW, Ford, and Honda are forming an alliance to create an EV grid services platform, providing managed charging services for EVs. Owners will be able to save money by using vehicle-to-grid to transfer EV battery power to the grid during peak hours while charging at lower-cost times. The initiative is expected to start offering the ChargeScape services at the beginning of 2024, awaiting regulatory approvals. It’s another entry in a now crowded space of energy management ecosystems joining GM as another car manufacturer building a service to enable customers to gain greater control of their electricity usage. Related, Shell and BYD Open World’s Largest Fast Charging Park in Shenzhen.

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The Future of Supply Chain 🎙️

Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.

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Fundraises and M&A 💸

Openvolt Raises €1.5M in Pre-seed Funding. Openvolt is an API provider for access to energy data to power applications like better EV charging experiences or electric grid demand response solutions. The funding will be used to accelerate the development of its product and growth of the team. The round was raised by Cavalry Ventures, with additional participation from Übermorgen Ventures.

Green Li-ion Raises $4.1M in Funding. Green Li-ion is a Singapore-based lithium-ion battery recycling startup. The capital will be used to build a plant in Oklahoma. The round was led by TTV.

Aspinity Raises $5M in Series B Funding. Aspinity is a platform providing high-performance, near-zero power AI solutions for automotive applications. The capital will be used to accelerate its global GTM. The funding was provided by current investors Anzu Partners, Birchmere Ventures, Mountain State Capital, and Riverfront Ventures.

Kayhan Space Raises $7M in Seed Extension. Kayhan Space is a provider of software and solutions for space mission operations, focusing on its autonomous space traffic coordination framework. The funding will be used to build out its offering and scale out the team. Space Capital and EVE Atlas co-led the round.

Peregrine Hydrogen Raises $7.8M in Seed Funding. Peregrine Hydrogen is a climate tech startup working on a dual production method for green hydrogen and valuable chemicals. The funding will be used to refine and scale up its technology and expand into commodity chemical markets. The round is led by Bidra with participation from Builders, Gates Frontier, Presidio Ventures, RiSC Capital, and Schox.

Yotta Energy Raises $8M in Funding. Yotta Energy is a provider of solar, energy storage, and EV charging technologies for commercial buildings. The capital will be used to scale up manufacturing and accelerate the deployment of its battery technology. The round was led by Evergy Ventures with participation from BlueScope, Cricetus Felix Ventures, and others.

Complete Farmer Raises $10.4M in Pre-Series A Funding. Complete Farmer is a Ghanaian company connecting farmers to global food buyers via an end-to-end agricultural marketplace. Its recently obtained funding will be used to fuel its efforts to develop critical technical and physical infrastructure in the region, with the aim to improve efficiency in the agricultural value chain. The round was co-led by Acumen Resilient Agriculture Fund and Alitheia Capital, with participation from Proparco, Newton Partners via the DP World Venture Fund and VestedWorld Rising Star Fund. The company also received debt financing from Alpha Jiri Investment Fund and Global Social Impact Investments.

Boxbot Raises $12M in Series A Funding. Boxbot is building automation systems for parcel delivery in last-mile logistics. The Series A funding will be used to fuel the company’s deployment of production-level systems into operating environments and scale across multiple facilities and customers. The round was led by Playground Global with participation from Maersk Growth, Toyota Ventures, Pear Ventures, and Artiman Ventures.

Metaloop Raises $17M in Series A Funding. Metaloop is a metal trading marketplace that connects scrap metal sellers (typically industrial entities where scrap metal is a by-product of something else they produce) with buyers. The new funding obtained by the company will be deployed to scale its sales and operations hiring and strategic international growth. The round was led by FirstMark Capital with participation from FJ Labs, Statkraft Ventures, and Silence VC.

Levelpath Raises $30M in Series A Funding. Levelpath is a SaaS platform that enables companies to manage enterprise procurement services. The company will use its new funding to fuel product development and research. The round was led by Redpoint with Participation from Menlo ventures.

Fernride Raises $50M in Series A Funding. Fernride is an autonomous trucking startup focused on the truck yard. The capital will be used to expand its business reach and development efforts. The funding was provided by DTCF, Munich Re Ventures, and Bayern Kapital.

JOKR Raises $50M in Series D Funding. JOKR is an online grocery delivery company that operates in the Latin American market. The funding will enable the company to continue to develop its grocery offerings such as scheduled deliveries and an increased number of products. Convivialité Ventures led the round and was joined by existing investors G Squared, GGV, Balderton Capital, Monashees, Greycroft, Tiger Global Management, and JOKR’s founders.

Mottu Raises $50M in Series C Funding. Mottu is a motorcycle rental company with two key aims of enabling income-generation for delivery gig workers as well as building the power grid for Latin America’s last mile. This new funding will enable the company to improve operational efficiency and customers’ experience as well as expand geographically. QED Investors and Bicycle Capital led the round with participation from Endeavor Catalyst and Caravela.

Harbinger Motors Raises $60M in Series A Funding. Harbinger Motors is an automotive manufacturer. The capital will be used to accelerate the production of its electric stripped chassis for Class 4 to Class 6 vehicles and double its workforce. The round was led by Ridgeline and THOR Industries, with additional participation from Greycroft, Tiger Global, Maniv Mobility, Ironspring Ventures, and others.

Mapbox Raises $280M in Series E Funding. Mapbox builds location-mapping software sitting behind in-car navigation systems of Toyota, BMW, GM, and others. The funding will be used to improve its AI software and decision-making processes. The round was led by SoftBank.

ZeroAvia Raises Series C Funding. ZeroAvia develops zero-emission hydrogen powertrain solutions for aircrafts to enable zero-emission flight. The funding - the amount of which was not disclosed but exceeds the company’s $72M Series B - will allow the company to continue the development of its first product, the ZA600, as well as the 2-5.4MW modular powertrain ZA2000 program. The latter will be used to retrofit a Dash 8 400 76-seat testbed aircraft from Alaska Airlines. Airbus, Barclays Sustainable Impact Capital, and NEOM co-led the round.

Kolors Acquires Urbvan for $12M. Kolors is a mobility company that connects intercity bus riders with drivers. The company has acquired Urbvan to be able to provide a door-to-door solution to its services as Urbvan is a B2B van-pooling provider with over 500 vans and shuttles on its platforms and hundreds of clients. Kolors’ acquisition of Urbvan will allow it to connect business travelers within cities as well as between them.

Rockwell Robotics Acquires Clearpath Robotics for $600M+. Rockwell Automation is an industrial automation and digital transformation company. The firm has acquired Clearpath Robotics, an autonomous robot maker for industrial applications. The acquisition will enable Rockwell to accelerate its end-to-end autonomous production logistics and advanced material handling solutions for customers.

Who's Hiring? 👩‍💻

Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!

Head of Operations at Zeelo in London, UK.

Business Intelligence Analyst at Milk Moovement in Halifax, Nova Scotia (Remote).

Sales Development Representative at Vizion in San Francisco, CA (Remote).