Dynamo Dispatch (2024/12/09)
Issue 311 | Vooma, HappyRobot, Tractian
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 💭
With the holiday season imminent, it’s time to begin planning that holiday shopping list. If you end up needing something last minute, fortunately there are now plenty of same-day delivery options. Retailers like Amazon, Walmart, and Target are in an intense race to dominate same-day delivery as a means to foster loyalty and increased spending. Curious how it all works? Read more about the journey of a same-day order here.
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Supply Chain 📦
⭐ China’s Flood of Cheap Goods Is Angering Its Allies, Too. China's strategy of exporting surplus goods to developing nations as it faces potential US tariff increases is sparking tensions with its Global South partners. Developing countries like Brazil, Indonesia, and Thailand are imposing tariffs and other trade measures to protect local industries from being undercut by China's cheap imports, which they say stifle domestic manufacturing and job growth. While Chinese investment and affordable goods benefit some sectors, many emerging economies are frustrated that China has retained dominance in low-end manufacturing, blocking opportunities for their industries. These strains complicate China's efforts to build alliances in the Global South amid escalating trade tensions with the US. Elsewhere, Transpac Liners Report Full Bookings As Shippers Front-Load to Beat Tariffs.
ILA Targets Rail-Mounted Gantry Cranes Amid Impasse in Port Labor Talks. The ongoing labor dispute between the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) is centered on the use of rail-mounted gantry cranes (RMGs) at East Coast ports. The ILA argues that RMGs, which are semi-automated and reduce the need for human operators, threaten jobs, lack proven efficiency gains, and are vulnerable to hacking. The USMX, however, contends that RMGs are essential for densifying land-constrained terminals to meet growing demand and remain competitive. With a January 15 contract deadline looming and no scheduled talks, the dispute highlights the broader tension between technological innovation and labor protections in port operations. In parallel, Port of New York and New Jersey Wants a Bigger Payday From Surging Ocean Trade while Shippers Eye Alternatives As Indian Port Workers Prepare for Indefinite Strike.
Analysts Predict Air Cargo Bull Market Will Cool 50% in 2025. The air cargo industry, currently experiencing a strong year with double-digit growth, is bracing for a potential slowdown in 2025 ranging from flat volumes to modest 4-6% growth depending on trade lanes. Factors contributing to this caution include adjustments to post-pandemic supply chains, stricter US customs regulations on low-value shipments, and geopolitical uncertainties such as tariffs proposed by President-elect Donald Trump. Additionally, capacity constraints caused by aging freighters, manufacturing delays, and reduced passenger flights on key routes could exacerbate supply-demand imbalances. While eComm remains a key growth driver, its influence is masking declines in traditional air cargo commodities like automotive parts and pharmaceuticals, signaling a shift towards ocean freight for certain sectors. However, The No-Frills Service That’s Delivering More and More Packages Driven By Shein Growth.
Holiday Shipping Fees Soar as Peak Season Starts Earlier Than Ever. Holiday shipping surcharges are straining retailers as FedEx and UPS implement unprecedented fee increases during an extended peak-season period now spanning 111 days. Baseline rates at these carriers have risen by 33% since 2021, with additional fees for fuel, rural deliveries, and bulky packages further compounding costs. While carriers justify the hikes as necessary to address rising expenses and weaker shipping demand, some businesses are forced to absorb these charges to maintain customer loyalty, eroding their margins. The surcharges have sparked frustration among small businesses, especially as they increasingly extend beyond traditional holiday periods. Also, Retail Outages Drag Into Second Week After Blue Yonder Ransomware Attack.
Amazon Deliveries Are Slower in Low-Income DC Zip codes, Lawsuit Says. The District of Columbia Attorney General is suing Amazon, alleging that two predominantly Black and low-income ZIP codes in the city experience slower delivery times under the Prime membership program. The suit claims that Amazon excluded these neighborhoods from its expedited delivery service since 2022, citing "driver safety concerns," while failing to notify affected customers or adjust membership fees. Residents report increased delays, with deliveries now often taking four days or more instead of the promised two, prompting accusations of discriminatory practices akin to redlining. Amazon denies the allegations, asserting its practices prioritize driver safety while maintaining transparency about delivery times during checkout. Unrelated, NJ Town Spent $28M to Block Warehouse Construction, What Should It Do With the Land.
Mobility 🚗
⭐ Why Europe’s Vaunted Car Industry is in Crisis, in Charts. Europe’s carmakers face mounting challenges, including stricter emissions rules at home, rising competition from Chinese EV makers, and potential US tariffs under President-elect Donald Trump. The shift to EVs has been met with slower-than-expected consumer adoption due to high prices and insufficient charging infrastructure, putting financial strain on companies like Volkswagen, which now faces possible factory closures and fines. Global demand for European exports, particularly luxury vehicles, has waned, exacerbated by China’s slowing luxury market and geopolitical uncertainties. Once a leader in global automotive production, Europe is now losing ground to China and the US in EV technology, marking the end of a decades-long supercycle for the industry. Elsewhere, Where Michigan Stands as an Auto Hub in the Electrification Era.
China Automakers Pivot to Hybrids for Europe to Counter EV Tariffs. Chinese automakers are increasingly exporting hybrid vehicles to Europe as a way to sidestep the EU's new tariffs on EV imports, which do not apply to hybrids. Hybrid exports from China to Europe have surged, tripling between July and October 2024, and are expected to grow further as these vehicles gain popularity as an affordable alternative to EVs. Major players like BYD and Geely are introducing competitively priced hybrid models to challenge established European and Japanese brands, while some companies plan local production in Europe to further reduce costs. However, this strategy risks triggering additional tariffs if aggressive pricing by Chinese firms disrupts the European market. Also, EU Aid for EV Batteries Seeks to Stave Off Chinese Competition and GM to Take $5B in Charges on China Venture with SAIC Motor.
Americans’ Cars Keep Getting Older—and Creakier. The aging US vehicle fleet should boost the auto repair and parts market, but inflation, high interest rates, and economic pressures have led many consumers to defer maintenance or opt for cheaper, lower-quality options. Major players like Monro, Genuine Parts, and Valvoline have experienced sales declines as low-to-middle-income consumers trade down or delay services such as tire replacements and oil changes. While maintaining older vehicles is more critical than ever given high used car values, economic constraints and reduced driving during the pandemic have further impacted demand. Industry leaders anticipate a rebound as deferred maintenance eventually becomes unavoidable, a trend that has historically buoyed the sector during economic downturns.
GM Energy Partners with a Texas Utility to Provide Free EV Charging. General Motors' EV subsidiary, GM Energy, and utility company Reliant have partnered to offer free nighttime charging for Chevrolet EV owners in Texas under the Reliant Free Charge Nights program. Customers who charge their vehicles between 11 p.m. and 6 a.m. will receive monthly bill credits, using 100% renewable energy through energy certificates. The program aims to reduce energy costs for EV drivers while alleviating strain on Texas's power grid during peak daytime hours, supporting the state’s growing energy demands. This initiative, alongside similar programs from Ford and Tesla, highlights collaboration between automakers and energy companies to build infrastructure for an all-electric future. Elsewhere in EV charging, EVgo and Meijer Expand Partnership to Install up to 480 New Fast Charging Stalls at Meijer Locations Across Midwest and Rivian Opens its Adventure Charging Network to Other EVs Today.
Consumer Reports Survey Finds Electric Vehicle Reliability Improving but Lagging Gas Models. The reliability gap between EVs and gas-powered cars has narrowed significantly, with EVs reporting 42% more problems than gas cars, down from 79% more in 2023. This improvement is attributed to maturing EV technology, but new automation features in EVs still introduce glitches, which may slow full parity with traditional vehicles. Gas-electric hybrids remain as reliable as internal combustion vehicles, benefiting from decades of refinement, and continue to grow in popularity, leading a 32.6% sales increase compared to 7.2% for EVs. Completely unrelated, Volkswagen’s PowerCo Secures Battery Materials Supply Deal.
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 💸
Cerve Raises £3.5M in Seed Funding. Cerve is a provider of API and infrastructure solutions for the food supply chain, digitizing and standardizing processes to reduce food waste and improve food security. The funding will support its commercial expansion across the UK, Europe, and North America, as well as bolster R&D capabilities through additional hires. SuperSeed led the round, with participation from Zenith, Ponderosa, and The First Thirty.
Reefilla Raises €4.5M in Funding. Reefilla specializes in energy storage and mobile power generation solutions, including second-life batteries and mobile EV charging systems. The funding will support its expansion within Italy and internationally, as well as R&D for new off-grid power solutions. CDP Venture Capital's Green Transition Fund led the round, with participation from HCapital, Azimut, Motor Valley Accelerator, and FinPiemonte.
Fabri Raises $5M in Seed Funding. Fabri offers precision metal castings delivered in days through a high-throughput additive manufacturing process and AI-driven design software. The funding will accelerate its mission to deliver cost-effective, fast-turnaround solutions for customers, enabling quicker market entry. Lavrock Ventures led the round, with participation from RTX Ventures, Tenon Ventures, and SBXi.
Etalytics Raises €8M in Funding. Etalytics, a German startup specializing in AI-powered energy management solutions, helps industries optimize energy consumption and reduce carbon footprints. The funding will support product development, international expansion, and a strategic partnership for joint R&D initiatives. The round was led by Alstin Capital, with participation from ebm-papst and TF H IV Technologiefonds.
Vooma Raises $13M in Series A Funding. Vooma is an AI platform for freight brokers and carriers, automating tasks like quoting, load building, and call handling to streamline logistics operations. The funding will be used to enhance GTM efforts and customer success for its AI-powered tools. Craft Ventures led the round, with participation from angel investors including executives from Motive, Project44, Ryder, and Uber Freight.
HappyRobot Raises $15.6M in Series A Funding. HappyRobot provides AI-powered voice solutions for the logistics sector, helping freight brokers, 3PLs, and warehouses scale operations and automate communication workflows. The funding will support expanding operations and development efforts. Andreessen Horowitz led the round, with participation from YC and RyderVentures.
Carbmee Raises €20M in Funding. Carbmee provides an AI-powered carbon management platform to help organizations measure, reduce, and report carbon emissions, addressing supply chain emissions and compliance with EU regulations. The funding will be used to enhance its platform and expand its global reach. The round was led by CommerzVentures, with participation from Fly Ventures and several angel investors.
ConnectDER Raises $35M in Series D Funding. ConnectDER is a provider of home energy technology solutions to simplify connections for solar, EV charging, and energy storage systems. The funding will support market expansion, manufacturing scaling, and the launch of the new solutions. The round was led by Decarbonization Partners, with participation from MassMutual Ventures, Avista Development, Clean Energy Ventures, Energy Innovation Capital, Evergy Ventures, LG Technology Ventures, and Zoma Capital.
Mintifi Raises $80M in Funding. Mintifi is an Indian supply chain financing startup that partners with corporates to provide distributors with working capital solutions. The funding will support its growth in digitizing supply chains. Prosus led the round.
Amp Robotics Raises $91M in Series D Funding. Amp Robotics operates robotic sorting facilities and provides waste sorting as a service to improve recycling efficiency. The funding will support the expansion of its facilities and further development of its AI and robotic systems. Congruent Ventures led the round, with participation from Blue Earth Capital, California State Teachers Retirement System, Liberty Mutual Investments, Wellington Management, Range Ventures, Sequoia Capital, Tao Capital Partners, and XN.
Tractian Raises $120M in Series C Funding. Tractian provides integrated hardware and software solutions for industrial asset monitoring, maintenance management, and uptime optimization. The funding will accelerate R&D, expand its patented technologies, and scale its team to address industrial maintenance challenges like unplanned downtime. Sapphire Ventures led the round, with participation from General Catalyst, Next47, and NGP Capital.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
QA Engineer (Automation) at Solvento in Mexico City, MX.
HR Generalist at Plus One Robotics in San Antonio, TX.
Business Development Representative at Zeelo in Boston, MA.