Dynamo Dispatch (2024/10/28)
Issue 306 | Paccurate, Zip, Waymo
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 💭
The big news of the week was Waymo’s gigantic $5.6B funding round as it continues to expand its robotaxi services. Especially with the timing of just two weeks after the Tesla Cybercab robotaxi reveal just two weeks ago, the self-driving space continues to push ahead. Of note, Waymo hinted at “business applications” that could be referencing other parts of the supply chain including food and package deliveries or trucking.
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Supply Chain 📦
Stability in Freight Markets Is Reviving Logistics Dealmaking. The logistics sector is seeing a revival in M&A as pandemic-driven earnings volatility gives way to more stable market conditions. With valuations now more consistent, companies like DSV and DB Schenker, and UPS's Coyote Logistics are making significant deals. M&A activity had slowed due to inflated valuations during the pandemic when booming cargo volumes made price agreements difficult. Now, with freight demand steadier, industry experts report a rise in deals — especially those exceeding $100M — along with renewed interest from PE firms looking to exit. For the latest in innovation, DHL Getting Two Nikola Hydrogen Trucks and They Aren’t in California and China’s Air White Whale Unveils Biggest Unmanned Cargo Aircraft.
Feds Clear Way for EVTOL Startups to Bring Flying Vehicles to US Airspace. The FAA has issued a final ruling that clears eVTOL aircrafts to operate in US airspace alongside planes and helicopters. This decision supports the eVTOL industry's plans to launch air taxi services by 2025 and ongoing efforts around delivery. The new rules establish specific guidelines for powered-lift aircraft, defining pilot training standards, certification requirements, and flexible operating rules that allow eVTOLs to operate under both helicopter and airplane guidelines. Joby Aviation, which is in the final stages of receiving its FAA type certification, expects the ruling will enable commercial operations once certified. On the ground, Amazon to End Same-Day Delivery Service From Retailers’ Local Stores and Survey: 53% of eComm Orders are Late, Damaged, or Misplaced.
As Boeing Strike Continues, A Major Sticking Point for Union Members is Revealed. Boeing factory workers are pushing for the return of pension plans, a demand central to their strike that began last month. Boeing had previously frozen its traditional pension plan for union members in 2014 in exchange for keeping production in Seattle, citing the rising cost of pensions. While Boeing has increased its wage offer over the course of negotiations, it remains firm against reintroducing pensions, deeming them too costly. The strike has halted production of Boeing’s jetliners, costing the company approximately $50M daily. Not the only strike, Montreal Dockworkers Begin 24 Hour Strike to Press Demands.
UPS Forecasts Softer Peak Shipping Season. UPS reported strong revenue and profit growth in Q3, showing a rebound after two challenging years. UPS’s domestic parcel volume rose by 6.5%, driven by demand from retail clients like Shein and Temu, though domestic air volume fell as Amazon shifts more transport to its own network. International and air cargo segments also grew, supported by new flights for Asia-Pacific and Europe and a new partnership with the USPS for domestic air cargo. While revenue guidance was lowered slightly due to the sale of Coyote Logistics, UPS cautioned that in-store shopping and economic headwinds may dampen holiday shipping ahead. Related, Retailers Grasp for Holiday Magic Amid Raucous US Elections and Shorter Season while LA and Long Beach Ports Just Smashed Pandemic-Era Cargo Volumes in September.
Walmart and Amazon Threaten US Drugstores in Prescription Delivery. Walmart and Amazon are intensifying competition in the $600B US prescription market by introducing same-day delivery services, which could significantly impact traditional drugstores. Walmart aims to launch nationwide same-day prescription delivery by January, leveraging its vast network of nearly 4,600 stores within 10 miles of 90% of the US population. Amazon also plans to expand same-day delivery to cover 45% of US customers by 2025, adding new pharmacy service sites in major cities. This shift comes as pharmacy chains like CVS and Walgreens face mounting pressures while independent pharmacies have historically underserved "pharmacy desert" areas. In the semiconductor industry, TSMC’s Arizona Chip Plant Yields More than Taiwan Equivalent.
Mobility 🚗
⭐ EU, China Agree to More Talks on Potential Alternatives to EV Tariffs. The EU and China have agreed to continue technical negotiations on alternatives to EU-imposed tariffs of up to 35.3% on China-built EVs, set to take effect next week. Both sides are exploring options like minimum price commitments from Chinese manufacturers or Chinese investments in Europe as possible solutions. Despite significant remaining gaps, EU trade chief Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao have reaffirmed their commitment to finding a WTO-compliant resolution. China also suggested creating a bilateral mechanism for managing price commitments and urged the EU to avoid negotiating separately with individual companies.
DHL Highlights Future Trends in the Automotive Industry and their Impact on Logistics. DHL identifies electrification & connectivity, resilience & agility, and shared & digital mobility as transformative forces in the automotive industry, stressing the need for resilient, adaptable supply chains to manage the complex demands of EV production and battery logistics. The company highlights the importance of lifecycle management for batteries, including recycling and second-life applications, as essential for sustainability. Completely unrelated, Boeing Explores Sale of Space Business.
Tesla Had a Good Quarter. Musk Needs More of Them to Fund His AI Future. Elon Musk envisions Tesla evolving beyond a traditional automaker into a leading AI and robotics company, with ambitious projects like self-driving Cybercabs and humanoid robots aimed at raising Tesla’s market cap to unprecedented levels. Recent efforts to improve Tesla's profitability have included cost-cutting measures that made production cheaper, driving third-quarter profits up and boosting investor confidence. However, the company faces challenges from a slowing EV market, rising R&D expenses, and the need to balance innovation with profitability in a highly competitive industry. Analysts remain cautious, noting that Tesla’s substantial investments in AI and autonomy come with high risks, requiring clearer business models to sustain long-term growth and investor confidence. Elsewhere in Tesla updates, Tesla Stock Jumped 22%. Where Shares Are Headed Next, According to History and Tesla Cybertruck Pushes Past Ford Mach-E to Become Third Best-Selling EV in America.
VW's Scout EV Revival Starts with an SUV and a Pickup. VW has revived the legendary Scout brand through Scout Motors, launching two new electric models: the Terra pickup and Traveler SUV, with production beginning in 2027. Inspired by the original Scout, these vehicles feature classic design elements like rounded contours and a “black mask” on the front and back, along with modern updates like LED lighting and a high-tech interior. Both models include body-on-frame construction, AWD, up to 10,000 pounds of towing capacity, and an acceleration of 0-60 MPH in 3.5 seconds. They will offer up to 500 miles of range, include bidirectional charging, and will be sold directly to consumers. Also on VW, Volkswagen Has Still Not Presented Future Plan for Brand, Says Works Council Boss.
Honda Previews Next-Gen Tech for its New ‘0 Series’ EVs. Honda showcased advanced technology for its upcoming “0 Series” EVs, previewing features for the flagship Saloon EV, set for production in 2026. The 0 Series will debut seven models globally by 2030, featuring a “Thin, Light and Wise” design ethos that integrates AI-driven driver assistance, automated capabilities, and adaptive learning of driver preferences. The new EVs will use a high-strength steel platform that enhances crash protection, allows significant weight reduction, and includes an Intelligent Power Unit developed with megacasting to streamline production. Additionally, Honda’s 0 Series EVs will feature compact e-axle technology for a lower center of gravity and innovative steering stability features to enhance cornering and traction. In less favorable Honda news, Honda Recalls 720K Accord, Civic, and CR-Vs over Fuel Pump Issue.
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.
Fundraises and M&A 💸
Universal Fuel Technologies Raises $3M in Seed Funding. Universal Fuel Technologies aims to cut sustainable aviation fuel production cost in half through its proprietary Flexiforming process. The round was led by TO VC and joined by Alchemist Accelerator, Claire Technologies, and World Star Aviation.
Nevoya Raises $3M in Seed Funding. Nevoya is a zero-emissions tech and trucking platform buying electric trucks and optimizing the usage, routing, and operations. The funding will be used to grow operations. Third Sphere and RedBlue Capital led the round, with participation from Necessary Ventures, Ciri Ventures, and Never Lift.
Keel Raises $6M in Seed Funding. Keel provides a customizable ERP platform, automating workflows and integrating tools such as inventory management and order processing. The funding will be used to further develop the platform. Earlybird and LocalGlobe co-led the round.
Paccurate Raises $8.1M in Series A Funding. Paccurate is a packing intelligence platform for parcel shippers. The funding will be used to advance the platform capabilities, forge new partnerships, and support the customer base. The round was led by High Alpha and joined by Tech Square Ventures, Grand Ventures, Hyde Park Angels, Las Olas Venture Capital, Springtime Ventures, and Royal Street Ventures.
Freeform Raises $14M in Seed Funding. Freeform is building a new metal additive closed-loop printing process. The funding will be used to scale up, build out their next generation of printers, and expand the team to around 55. Boeing’s AE Ventures and Nvidia led the round.
Adden Energy Raises $15M in Series A Funding. Adden Energy is developing solid-state batteries with the aim of eliminating the risk of fires or explosions and possibly fully charging an EV in minutes. The funding will be used to scale production and bring the technology to car manufacturers. At One Ventures led the round.
WarrCloud Raises $20M in Series B Funding. WarrCloud is an automated warranty processing platform for automotive dealerships and manufacturers. The round will enable the company’s investments in its AI technology. Centana Growth Partners led the round.
BasiGo Raises $24M in Series A Funding. BasiGo provides electric bus solutions in sub-Saharan Africa. The funding will unlock $17.5M in debt facilities and support its goal of delivering 1K electric buses over the next three years. Africa50 led the round, with participation from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and the Susquehanna Foundation.
Stellapps Raises $26M in Series C Funding. Stellapps is a diary-tech startup based in Bengaluru building a diary supply chain digitization platform. The funding will be used to accelerate growth. Investors include Blume Ventures, the Bill & Melinda Gates Foundation, IDH Farmfit Fund, 500 Startups, and Blue Ashva Capital.
Interos Raises $40M in Growth Financing. Interos maps and monitors organizations’ supply chains for potential regulatory, labor, and cybersecurity risk and issues. The funding will be used to stay ahead of the competition by aggressively expanding. Blue Owl Capital led the round.
Simbe Raises $50M in Series C Funding. Simbe provides an item-scanning robot, powering automated shelf intelligence in retail. The funding will be used for global expansion and advancement of its offerings. Goldman Sachs Alternatives led the round and was joined by Eclipse, Valo Ventures, and more.
Outrider Raises $62M in Series D Funding. Outrider is the provider of autonomous yard operations for logistic hubs. The capital will be used to drive commercial scaling. The round was led by Koch Disruptive Technologies and NEA, and joined by 8VC, ARK Invest, B37 Ventures, FM Capital, Interwoven Ventures, NVentures (NVIDIA’s venture capital arm), and Prologis Ventures.
Nimble Raises $106M in Series C Funding. Nimble enables autonomous fulfillment through an AI robotics platform. The funding will be used to scale robot manufacturing and system deployments as well as fuel R&D. The round was led by FedEx and Cedar Pine.
Zip Raises $190M in Series D Funding. Zip is AI-powered procurement orchestration platform. The funding will be used to accelerate R&D and broaden global expansion. BOND led the round, with participation from DST Global, Adams Street, and Alkeon, along with existing investors Y Combinator and CRV.
Vinted Sells €340M of Secondary. Vinted is a C2C marketplace focused on the fashion industry. The funding will be used for the next phase of growth, which includes the roll-out of a new category for electronics. TPG and Hedosophia funded the investment, alongside Baillie Gifford, Invus Opportunities, FJ Laps, Manhattan Venture Partners, and Moore Strategic Ventures.
Waymo Raises $5.6B in Series C Funding. Waymo is Alphabet’s driverless vehicle unit. The funding will be used to expand its robotaxi services across the US. The round was led by majority owner Alphabet, with previous investors Andreessen Horowitz, Fidelity, Perry Creek, Silver Lake, Tiger Global, and T. Rowe Price joining.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Sr. Underwriter at Solvento in Mexico City, MX.
Technical Field Manager at PaintJet in Texas (Remote).
Product Owner - WMS at Stord in Atlanta, GA (Remote).