Dynamo Dispatch (2024/12/16)
Issue 312 | Skydropx, Rebel Foods, Car Dekho
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 đ
After 8 years and more than $10B from GM, the company is exiting the robotaxi business and will be folding Cruise into the companyâs other autonomous driving initiatives. GM CEO Mary Barra cites the high costs of fleet operations as key to this decision during a year in which cost trimming has been central to the automakerâs efforts. This decision comes a year after a Cruise vehicle injured a pedestrian, resulting in a tumultuous period for the automakerâs reputation, a crackdown from regulators, and the resignation of Cruise founder Kyle Vogt. While GM pulls back on Cruise, other robotaxi companies are charging ahead with Waymoâs expansion into additional cities and Teslaâs planned launch in 2026.
đ„ Dynamo portfolio company Skydropx is making inroads into the Brazilian market with its recent acquisition of Frenet. Frenet integrates carriers with eComm platforms and will enable Skydropx, a shipping platform for eComm and retail, to serve large sellers in Brazil.
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Supply Chain đŠ
â China Gears Up for US Trade Fight by Showcasing New Tools. As Donald Trump threatens additional tariffs, China is ramping up its trade-defense measures such as introducing export bans on rare materials and drone components while investigating Nvidia. These moves are carefully calibrated to challenge the US without severely disrupting China's economy, signaling Beijing's readiness to leverage its supply chain strengths in escalating tech competition. Additionally, a weaker yuan is being considered to offset the impact of a potential trade war. With limited time before Trumpâs inauguration, Beijing is under pressure to assertively respond while navigating the economic and political challenges of the transpacific rivalry. Closer to home, Ontario Premier Says Canada Could Cut US Energy Supplies in Retaliation for Trump Tariffs while Trump âCanât Guaranteeâ Americans Wonât Pay More if Tariffs Enacted.
Trump Backs ILA in Port Labor Standoff. Donald Trump has publicly sided with the International Longshoremenâs Association (ILA) in its opposition to port automation, advocating for more dockworker jobs instead of implementing semi-automated container cranes. Trump echoed the union's concerns that automation would eliminate jobs, urging foreign-based terminal operators to prioritize employing American workers over investing in expensive machinery. Talks between the ILA and the United States Maritime Alliance (USMX) have stalled over the automation issue, with a potential strike looming in January. While employers argue that automation is essential for increasing port efficiency and creating long-term job growth, Trumpâs comments suggest he may not intervene in a strike, signaling alignment with union priorities over port modernization. On the waters, US Navy Repels Second Houthi Attack on US-Flagged Merchant Convoy and Maersk Sees Global Trade Growth Rising As Much As 7% in 2025.
To Fight Forced Labor, Shein and Patagonia Dig Into the Atomic Makeup of Their Clothes. Companies like Shein and Patagonia are increasingly turning to isotopic testing to verify the origins of materials in their products, aiming to ensure their supply chains are free of forced labor, particularly from China's Xinjiang region. This forensic method analyzes unique chemical signatures in materials to determine where they were sourced, offering a scientific alternative to traditional documentation, which is prone to fraud. While tests have provided valuable insights, scientists caution against over-reliance on this technology, as isotopic fingerprints can overlap across regions and require further verification. Despite its limitations, isotopic testing has emerged as a promising tool for enhancing supply chain transparency and meeting regulatory requirements.
DoorDash Steps Up Driver ID Checks After Traffic Safety Complaints. DoorDash is intensifying its efforts to prevent unauthorized account sharing by requiring more frequent identity verifications for its drivers. In response to safety concerns and complaints from cities like Boston and New York, the company will now implement real-time identity checks after deliveries in select cities, with plans for broader adoption next year. DoorDash is also leveraging ML to detect suspicious account activity, requiring drivers to re-verify their identities when anomalies are flagged. The measures aim to address issues such as account sharing and unauthorized drivers, while meeting regulatory pressures and demands from lawmakers to improve accountability and safety on delivery platforms. On the earlier stage, Ex-Amazon Executive Dave Clarkâs New Supply Chain Startup Eyes Acquisitions.
How Amazonâs New Robotic Warehouse Balances Automation and Human Workforce. Amazon has launched its most automated warehouse to date in Shreveport, Louisiana, a 3-million-square-foot facility integrating advanced robotics and AI to optimize the fulfillment process. Despite this high level of automation, human workers remain critical for tasks requiring decision-making, adaptability, and precision, such as picking items and managing robotic systems. The facility currently employs over 1,400 workers with plans to grow to 2,500, reflecting the balance Amazon strikes between leveraging automation and maintaining a significant human workforce. This warehouse underscores Amazon's approach of blending human expertise with cutting-edge technology and is expected to expand these innovations to other locations in the coming year. For more automation, Volvoâs VNL Autonomous Fleet Begins Hauling Freight For DHL in Texas.
Mobility đ
â GM Ends Its Cruise Robotaxi Experiment. GM is exiting the robotaxi business, with CEO Mary Barra emphasizing that operating Cruise's autonomous fleet is expensive and not central to GM's goals. Competitors like Tesla, Amazon, and Google remain focused on developing robotaxi services, though profitability remains elusive due to high development costs and technological challenges. GM is now focusing on its Super Cruise system, a partial automation technology, as full self-driving cars remain unavailable. Despite advancements in autonomous technology, surveys show significant public distrust of self-driving cars, with many Americans ranking them as among the least desirable car features. Related, Microsoft Sees $800M Loss on Stake in GMâs Cruise.
Inventory Management Key Amid EV Uncertainty, Affordability Woes, Experts Say. As US vehicle inventories stabilize near a healthy 85 daysâ supply, automakers face challenges in balancing product mix, particularly with elevated EV inventories and uncertain federal support for EVs under a Republican-led Congress. EV inventory levels remain higher than ICE vehicles despite larger incentives, while affordability issues push many buyers toward older used cars, complicating new vehicle sales. Automakers are cautiously increasing incentives, now averaging 7.7% of transaction prices, but still below pre-pandemic levels, as they aim to protect profit margins amid a more competitive market. Experts suggest cutting production, rather than relying heavily on incentives, as a better strategy to manage inventory costs and maintain pricing stability. Also, US Share of Electric and Hybrid Vehicle Sales Reached a Record in the Third Quarter.
Exclusive: Trump Transition Wants to Scrap Crash Reporting Requirement Opposed by Tesla. The Trump transition team proposed eliminating a car-crash reporting requirement opposed by Tesla, a move that could weaken the government's ability to regulate and investigate automated-driving systems. Tesla, which has reported over 1,500 crashes under the rule, has been the focus of multiple NHTSA investigations into safety issues, including fatal accidents involving its "Autopilot" feature. Critics of the proposal, including former NHTSA employees, argue that the data is essential for identifying crash patterns and addressing safety concerns, with the rule already influencing recalls and investigations across the industry.
Electric Vehicle Battery Packs See Biggest Price Drop Since 2017. The average price of lithium-ion battery packs dropped by 20% in 2024 to $115 per kilowatt-hour, marking the largest decline since 2017. This sharp drop, driven by overcapacity in cell production, lower metal prices, and the adoption of cheaper lithium iron phosphate batteries, could bring EV prices on par with gasoline-powered cars as soon as 2026 when prices are expected to fall below $100/kWh. China is projected to produce 92% of global battery demand in 2024, exerting downward pressure on prices and challenging smaller manufacturers to compete with larger rivals. However, geopolitical uncertainties, shifting EV subsidies, and fluctuating car sales could disrupt future battery pricing and EV adoption trends. Related, CATL Tells its Suppliers Funding Wonât Be an Issue as a Price War Erupts in the EV Battery Market and Dodge Maker Stellantis and Chinaâs CATL Team Up to Build $4.3B EV Battery Plant in Spain.
China Auto Sales Sustain Momentum on Subsidies, Campaigns. Chinese car sales surged in November, rising 16.5% YoY driven by government subsidies, trade-in policies, and sales campaigns tied to events like Singles' Day and the Guangzhou auto show. Retail sales of new-energy vehicles, including electric and hybrid cars, exceeded 50% of total passenger vehicle sales for the fifth consecutive month, with BYD leading the market and Tesla China also contributing significantly. The China Passenger Car Association (CPCA) projects continued growth in the world's largest auto market, with strong consumer interest in vehicle upgrades and replacements. Related, Brazilian Ports Jammed with 70,000 Unsold Chinese EVs as Tariffs Loom.
The Future of Supply Chain đïž
Check out our podcast series thatâs 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 đž
đ„ Skydropx Acquires Frenet for $5.2M. Skydropx is a shipping platform for eComm and retail in Latin America. Frenet integrates carriers with eComm platforms, serving larger sellers in Brazil. The acquisition allows Skydropx to enter the Brazilian market, the regionâs largest logistics hub.
Zimi Raises $2M in Seed Funding. Zimi is a cross-border eComm platform focused on simplifying the complexities of international sales for vendors in emerging markets. Zimi will use this funding to scale its US fulfillment networks and build and apply AI models to improve the merchant experience. Fearless Fund led the round and was joined by Y Combinator.
BeePlanet Factory Raises âŹ5M in Funding. BeePlanet Factory specializes in energy storage from reused electric vehicle batteries, developing solutions for industrial self-consumption, renewable energy installations, and charging infrastructure. The funding will support its international expansion, new business models, and the construction of a battery recycling plant. Santander Climate Fund and Easo Ventures led the round, with participation from Itzarri, Suma Capital, EIT InnoEnergy, and Sodena.
Cofactr Raises $17.2M in Series A Funding. Cofactr is a supply chain and logistics management platform focused on high-compliance industries such as aerospace. The funding will be used to expand the companyâs product line. Bain Capital led the round and was joined by existing investors Y Combinator, Floating Point Ventures, Broom and DNX.
Electrified Thermal Solutions Raises $19M in Pre-Series A Funding. Electrified Thermal Solutions develops thermal batteries using modified fire bricks to convert electricity into high-temperature heat for industries like cement and steam generation. The funding will support the commissioning of a commercial-scale demonstration by mid-2025. Investors in the round include Clean Energy Ventures, EDP Ventures, GVP Climate, Holcim Maqer Ventures, Starlight Ventures, and Vale Ventures.
Prima Raises $23M in Series A Funding. Prima is a manufacturing and supply chain integrator facilitating procurement for North American companies. The funding will be used for operational and business expansion. Investors include Acrew, Quona Capital, Nazca, Greenoaks, Canary, NXTP, Picus Capital, Endeavor, Fluent Ventures, K50 Ventures, Marathon Ventures, Box Group and WTI.
Embotech Raises $27M in Series B Funding. Embotech specializes in autonomous driving solutions for logistics such as ports, and yards. The funding will support scaling operations in Europe and expansions into the US, Middle East, and Asia. The round was led by Emerald Technology Ventures and Yttrium, with participation from BMW i Ventures, Nabtesco Technology Ventures, Sustainable Forward Capital Fund, RKK VC, and existing investors.
WeaveGrid Raises $28M in Funding. WeaveGridâs platform is designed to assist utilities to manage EV charging demand and help EV owners efficiently charge their vehicles. Woven Capital led the round and was joined by Activate Capital, Collab Fund, Emerson Collective, and Salesforce Ventures participated, with debt provided by HSBC Innovation Banking.
Raptor Maps Raises $35M in Series C Funding. Raptor Maps is a provider of advanced analytics and digital solutions for solar farm productivity and management. The funding will support product development in solar automation, work management, and machine learning, as well as team expansion in software engineering and data science. The round was led by Maverix Private Equity, with participation from MKB, Blue Bear Capital, Congruent Ventures, Buoyant Ventures, and Y Combinator.
Nanoramic Raises $44M in Funding. Nanoramic develops an electrode technology that enhances battery energy density, longevity, and sustainability while reducing costs. The funding will support the commercialization across industries including automotive and consumer electronics. General Motors Ventures and Catalus Capital led the round, with participation from Samsung Venture Investment Corporation, Top Material, Fortistar Capital, and WindSail Capital Group.
Anybotics Raises $60M in Series B Funding. Anybotics develops quadruped autonomous robots designed to perform industrial inspections. The funding, which brings the total round size to $110M, is intended to expand the companyâs core business globally. The round was co-led by Qualcomm Ventures and Supernova Invest, with participation from Bessemer Venture Partners, GP Capital, Swisscanto, Swisscom Ventures, TDK Ventures, and Walden Catalyst.
CarDekho Raises $60M in Funding. CarDekho is a spinout from CarDekho group which offers used car and motorcycle financing, refinancing, and classified listings. The funding will be used to further expand the companyâs presence in Southeast Asia. The round was led by Navis Capital Partners and Dragon Fund.
Rebel Foods Raises $210M in Series G Funding. Rebel Foods is a Mumbai-based operator of online-only ghost restaurant brands. The funding will also support its goal of reaching 800 cloud kitchens in 200 cities by 2029 and preparing for an IPO by 2026. The round was led by Temasek Holdings, with participation from existing investor Evolvence.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Ground Operations Support at Manna in Dublin, Ireland.
Sr. Underwriter at Solvento in Mexico City, Mexico.
Operations Manager at Stord in Las Vegas, NV.