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
Electrification continues to be a leading topic across both our focus areas of supply chain and mobility. A recent report found that the cost of electrifying commercial trucking will reach $1T, highlighting the importance of collaboration between industries and governments. This report comes off the back of recent launch of the Biden Administrationās National Zero-Emission Freight Corridor Strategy, as highlighted last week. Now the DOE and the EPA have released new emissions standards and fuel measures which are expected to meaningfully boost the growth of EVs, although the ramp up to the 2032 targets is less intense than the rules proposed last April. For electrification across industries, it doesnāt appear that the foot will be taken off the gas (pun intended) anytime soon.
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Supply Chain š¦
āĀ FedEx and Amazon Discussed Partnership as Competition for Returning Packages Intensifies. After ending its official partnership back in 2019, FedEx and Amazon have recently explored new business opportunities including discussions about FedEx accepting Amazon returns at its retail locations. These talks reflect FedEx's efforts to boost parcel volumes amid industry challenges and Amazon's focus on improving its customer experience. However, the negotiations did not lead to a deal. Still, it highlights the growing focus on returns in the complex and competitive delivery landscape. On a separate front, Temu and Shein Replace Walmart and Target as Amazonās Competitive Focus while Shein to Add āSupply-Chain-As-A-Serviceā Offering Amid Regulatory Challenges in US.
Report Pegs Cost of Electrifying US Commercial Truck Fleet at $1T. The Clean Freight Coalition's report estimates that electrifying the US commercial truck fleet would cost close to $1 trillion in infrastructure alone, posing a significant investment challenge for the industry and utility companies. It underscores the massive investment gap required to transition to battery EVs for heavy-duty trucks, which face higher costs and infrastructure challenges. To effectively decarbonize the commercial trucking industry, thereās a clear need for collaboration among industries and governments, financial support, and alternative paths to effectively decarbonize the commercial trucking sector. One such alternative tech, Nikolaās Rollout of Hydrogen Trucks Is Hitting Supply-Chain Hurdles.
Shipping Giants and Customers Like Big-Box Retail Are Far Apart on Price In Peak Ocean Freight Contract Season. Thereās a waiting game developing in this peak season for annual freight contracts between shippers and carriers as the Red Sea crisis has pushed the spread between spot market rates and long-term contract rates to its highest level since September 2021. Sitting at a spread of $2.5K, shippers do not want to commit to contracts at the higher short-term rates, especially as spot rates have dropped for a sixth-consecutive week. However, carriers are also happy with waiting for contracts signed last year to expire, as then shippers may need to ship all of their products on the spot market. Itās a negotiation to keep an eye on as final agreements can have tangible impact on either sideās financials. On the topic of maritime, BNSF and UP Working Through Rail Container Backlogs in Southern California and Nike Agrees To Use Biofuel For Some Cargo With CMA CGM.
Container Shipments From China To Mexico Skyrocketed in January. China's container exports to Mexico have seen a significant surge, growing by nearly 60% YoY in January. This growth suggests a potential strategy to circumvent tariffs, as some goods may be redirected into the US market through Mexico. Mexico's ports, particularly those on the West Coast, have witnessed a substantial uptick in container activity, underscoring the strengthening trade ties between China and Mexico. This shift in trade dynamics is reshaping global trade patterns, with Mexico emerging as a pivotal player in trade routes to the United States. In other trends, China Is About To Transform South American Trade With Port In Peru and Demand Soars For Asia-Europe Sea-Air Option To Avoid Longer Africa Transit.
Drought Threatens To Snarl Mississippi River Traffic for a Third Year. The Mississippi River faces potential bottlenecks due to warm, dry weather and low snowpack, posing risks to critical transportation routes and commercial interests. While spring temperatures are forecasted to be warmer than average and major flooding is not expected, drought conditions may persist in certain regions, impacting water levels and navigation. Monitoring Mississippi's water levels closely is crucial for assessing potential impacts on freight transport and agricultural exports, highlighting the increasing vulnerability of vital trade routes to climate change.
Mobility š
āĀ Bidenās Newest Rule on Auto Emissions Set to Boost Electric Car Sales. The Biden administration announced stringent tailpipe emission limits for cars and light trucks, aiming to push automakers towards rapid adoption of battery-electric and plug-in hybrid models. Despite initial pushback, the EPAās mandates require a significant shift towards zero-emission vehicles. This move represents one of President Biden's major climate regulations, impacting decisions from manufacturers to consumers across the US. While praised by environmentalists for its climate benefits, some industry groups and analysts express concerns about affordability, infrastructure challenges, and consumer demand for EVs. The regulation is part of broader efforts to reduce greenhouse gas emissions in the transportation sector and align with the country's commitments under the Paris Agreement. For more, New EPA, DOE Fuel Regs Give Automakers Longer to Reduce CO2Ā Emissions.
Boeing to Spend $4B Plus to Fix Safety, Supply Chain Woes: CFO. Boeing is expected to spend between $4B to $4.5B this quarter to address production line issues and safety concerns following the recent mishaps such as the midair door plug blowout on an Alaska Airlines plane in January. The company is slowing down production of 737 Max units to under 38 per month, with plans to ramp up later in the year pending FAA approval. Boeing's CFO, Brian West, acknowledged the need to prioritize safety over production speed and emphasized the importance of improving the supply chain to ensure compliance with quality standards. Despite facing margin pressures and organizational challenges, Boeing expects to remain financially capable of completing its acquisition of Spirit AeroSystems. Related, Boeing, Boeing Gone! Airbus Scores Big Wins in Japan & South Korea.
Nissan and Honda Confirm Cooperation ā Including on Electric Cars. Nissan and Honda have officially announced a strategic partnership for electric cars and other areas, aiming to strengthen environmental and electrification technologies as well as software development. This collaboration follows leaked information about their intention to work together. The partnership aims to address common challenges in the automotive industry and explore opportunities for cooperation, potentially including joint powertrains, procurement, platform development, and even the joint development of electric vehicles. The move comes as both companies face competition from Chinese rivals in the electric car market and seek to leverage each other's strengths for sustainable growth. Related, Chinaās Super-Cheap EVs Offer Hope for Average American Buyers and ****Hondaās Hydrogen Fuel Cell-Powered CR-V Isnāt as Dumb as You Think.
GM Stops Sharing Driver Behavior With Data Brokers And Insurers After Lawsuit. GM has decided to end its relationship with data brokers LexisNexis and Verisk following a lawsuit and investigation uncovering the practice of sharing customers' driving data with the insurance industry, potentially leading to increased premiums. The lawsuit, filed against GM, OnStar, and LexisNexis by a Florida resident, alleges that data shared about his driving habits resulted in significantly higher insurance premiums. While GM emphasizes customer trust and privacy as priorities, the move comes after revelations of data misuse, raising concerns about privacy breaches and potential financial consequences for drivers. This decision reflects a broader issue within the automotive industry, with multiple automakers implicated in similar data-sharing practices, highlighting the need for clearer privacy standards and consumer awareness. Completely unrelated, UAW Wants Vote to Unionize Volkswagen Plant in Tennessee.
F1ās Pursuit of Sustainability Drives Pirelli to Unveil Forest-Friendly Tires. Formula 1 (F1) has been undertaking a variety of sustainability initiatives, from switching to carbon neutral synthetic fuels,Ā improving their logistics to cut freight emissions, and running race tracks entirely on solar power. Next, the sport is tackling tire sustainability. Pirelli, the official tire supplier for F1, has received certification from the Forest Stewardship Council (FSC) for using sustainably sourced natural rubber in its tires, marked by a tree logo on the sidewall. This move aims to address concerns about deforestation and human rights abuses associated with rubber farming. Additionally, Pirelli is exploring the use of more sustainable materials for synthetic rubber and implementing innovative strategies to reduce tire waste, contributing to a more environmentally friendly F1 program. Elsewhere in F1, Formula 1 Management Shocked Team Used Excel for 20,000-Part Inventory, Now Replacing 'Impossible to Navigate' Sheet.
The Future of Supply Chain šļø
Check out our podcast series thatās 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.
Fundraises and M&A šø
Blitz Raises $1.6M in Seed Extension Funding. Blitz is a logistics solutions company that offers EVs and fleet optimization software for sustainable, optimized deliveries. The round will enable Blitzās expansion across Indonesia. The funding comes from the Asia Development Bankās ADB Ventures as well as Iterative VC, FiveFortyAlpha, Third Derivative, BonBillo Fund, Bansea, and Satvik Investments.
Enapi Raises ā¬2.5M in Pre-Seed Funding. Enapi offers a connectivity platform for collaboration in the EV charging industry, specifically focused on building a transaction broker and clearing house. The funding will be used to further build its platformās functionalities. Project A Ventures led the round with participation from Seedcamp and HelloWorld.
Pelikan Mobility Raises ā¬4M in Seed Funding. Pelikan Mobility is a SW-enabled commercial EV leasing solution. The funds will be used to launch its leasing offering. Investors included Pale Blue Dot, Frst, and Seedcamp.
MarineLabs Raises $4.5M in Seed Funding. MarineLabs provides maritime weather intelligence for informed decision-making. The capital will be used to accelerate product development and expand market reach. BDC Capitalās Sustainability Venture Fund led the round, along with participation from Seaspan Shipyards.
G2 Reverse Logistics Raises $9.6M in Seed Funding. G2 Reverse Logisticsās platform offers efficient returns processing, optimized net recovery and automated returns decisions for retailers, manufacturers, brands, and 3PLs. The funding will be used for sales and marketing investments to fuel global expansion. The round was led by Dell Technologies Capital.
Stress Free Auto Care Raises $11M in Series A Funding. Stress-Free Auto Care is a startup acquiring and modernizing auto repair shops. The funding will be used to expand its network of shops, with a goal to stand up one location a month this year. Forerunner Ventures led the round.
Marco Raises $12M in Series A Funding. Marco is a cross border trade finance platform for Latin American SMEs. With this funding, Marco will ālaunch new sustainable initiatives aimed at reaching the segments of the LatAm SME market most underserved by the current financial systemā. The round was led by IDC Ventures and joined by IDB Lab, Barn Invest, SquareOne Capital, Arcadia Funds, Florida Funders, Miami Angels, Kayyak Ventures, and Neer Ventures, and more.
Fuel Me Raises $18M in Series A Funding. Fuel Me is a fuel procurement and management platform. The funding will be used for technology development and execution of service delivery to customers. Pritzker Group VCĀ and Tribeca Venture Partners co-led, and were joined by Bessemer Venture Partners, Interplay Venture Capital, FJ Labs, HPA, Bridge Ventures, Correlation Ventures, Forefront Venture Partners, and Gaingels.
Ingrid Raises ā¬21M in Series A Funding. Ingrid is a Sweden-based last-mile delivery startup for online shopping. The capital will be used to expand the platform and break into new markets. Verdane led the round, with Schbisted Ventures also participating in the round.
NX Technologies Raises ā¬22M in Series B Funding. NX Technologies operates an automotive payment management platform. The funding will be used to strengthen the companyās presence in Germany, fuel European expansion, and grow its platform. PayPal VenturesĀ led and was joined by Seaya Ventures, Walter Ventures, and existing investor Motive Ventures.
Candela Raises $25M in Venture Funding. Candela produces electric boats which use hydrofoils with electric engines mounted on the bottom. The funding will allow the company to scale up production to meet demand. The round was led by by Beneteau, with participation from EQT Ventures, Ocean Zero LLC, and Kan Dela AB.
Coast Raises $25M in Venture Funding. Coast is a expense management fintech focused on field personnel and fleets like trucking or last-mile delivery companies. The capital will be used on product development and expanding GTM capabilities. BoxGroup and Avid Ventures co-led the round, with other existing investors also participating.
Pandion Raises $41.5M in Series A Funding. Pandion is an eComm logistics platform focused on the middle mile of residential parcel delivery. The capital will be used to expand its operations. Revolution Growth led the round, along with participation from Proof, Sentinel Global, and existing investors.
Moove Raises $100M in Series B Funding. Moove is a Nigerian fintech company providing vehicle financing for ride hailing and delivery app drivers. The round will enable the company to expand to 16 markets by the end of 2025, add 45K new vehicles to the platform (with a meaningful focus on growth with EVs), expand operational capacity, and reach profitability.
Wonder Raises $700M in Funding. Wonder is a NY-based food-delivery startup. The capital will be used to open nearly 100 delivery-focused restaurants. Investors include NEA, GV, and Dragoneer Investment Group.
Who's Hiring? š©āš»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Commercial Operators at Manna in Dublin, Ireland.
Customer Success Manager at Factored Quality in New York, NY (Remote).
Head of Strategic Partnerships at Amitruck in Nairobi, Kenya.