Dynamo Dispatch. Weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.

💥 Have you seen any interesting startups recently? Introduce us.❤️ We would love your support. Please forward to friends and share on social media.🗞️ If you were forwarded this and found it interesting, please sign up.🎙 Check out Dynamo's podcast series, The Future of Supply Chain.

Weekly Commentary 💭

If you know any brilliant founders building in supply chain or mobility, we’d love to be introduced. For context, we made a few intros to prospective customers this week for companies we’ve had discussions with. Plus, you could get a shout out here - thanks to TX and Anna this past week.

We Are Dynamo,

Santosh, Ted, Barry, Jon, Rachel, and Emily

Note: please add “[email protected]” to your email client so you don’t miss future issues due to aggressive spam filters.

Supply Chain 📦

ELDs Have Improved HoS Compliance in First Year Since Full Implementation. The regulation requires nearly all long haul carriers to record drivers’ HoS data with ELDs instead of paper logbooks. Data from ELDs eliminates collecting mileage and fuel receipts by automatically calculating them, as well as verifying that drivers are operating within federal regulations that limit them to driving 11 hours with a 30 min break by hour 8. The belief is that this reduces the total capacity in the market since many drivers were driving well north of that per day while also driving unprofitable firms out of market. Related, Trucking Employment Rates Continue Rallying and separately, Kodiak’s AV Trucks Reach Highway Milestone.

Convoy’s New Freight Procurement and RFP Offering. It takes four months on average to complete an annual RFP yet the process and market conditions render the rates obsolete about 6 months after that in a typical year. To fix this issue, Convoy’s Guaranteed Primary is a program that guarantees service to shippers at a market rate and fixed gross margin. Shippers don’t have to run costly administrative processes to ensure they’re paying fair market rates — Convoy’s technology automates price discovery and handles carrier assignments. Also, Lineage and Turvo Announce Collaboration.

📊Deloitte Retail Industry Outlook. It’s interesting to note that supply chain resilience ranks third in priority after investments in ramping digital capabilities and efforts to uphold employee health and safety. This bodes well for supply chain investments but to add detail, we’ve had retail and eComm executives mention prioritizing system modernization, warehousing/fulfillment, and delivery. In the vein of retail, COVID Forcing Online and In-person Retail Tech to Converge namely around in-store fulfillment.

Airfreight Rates Start 2021 on a Decline. Underlying fundamentals coming into 2021 appeared positive for airfreight but renewed concerns around COVID have stunted supply availability. Demand still exists and the lack of capacity has resulted in some companies expanding their internal fleets, such as Amazon. On the ocean, Maersk Sees Little Change in Tight Shipping Supply Near Term while rising container prices have risen Helping the Financial Prospects for the Ocean Container Liners.

🌟US Importers Signing Trans-Pac Contracts Earlier. While signing early-bird contracts is not a new phenomenon in the eastbound trans-Pacific, this year is different because the early signings are more frequent and driven more by space guarantees than freight rate considerations. Related, Lufthansa First to Apply Surcharge on Cargo Trucked from the UK to EU Airports while DB Schenker Suspends Deliveries to UK Due to Post-Brexit Customs Paperwork.

📊Warehouse Rents Could Slow Their Climb in 2021 as Construction Boosts Supply. Warehouse rents are likely to increase at a slower pace in 2021, compared to 2020, as more industrial supply hits the market. Warehouse and distribution rents were up 5.6% y/y during Q4 2020 vs the broader industrial market that saw an increase of 4.6% in the same period. Also, LinkedIn Reports Frontline Warehouse Worker is Top Job on the Rise while XPO Names Leaders for Spin-out.  

FAA Approves First Fully Autonomous Drone Deliveries. US aviation regulators have approved the first fully automated commercial drone flights, granting a small Massachusetts company permission to operate drones without hands-on piloting or direct observation by human controllers or observers. The decision by the FAA limits operation of automated drones to rural areas and altitudes below 400 feet, but is a potentially significant step in expanding commercial applications of drones for farmers, utilities, mining companies, and other customers.

Mobility 🚗

Wireless Battery Management Extends Driving Range in EVs. Texas Instruments released updates in EV battery management systems during CES 2021. Reducing design complexity helps all automotive manufacturers to speed up production, and in this way, wireless battery management systems can be a key element for EVs. Related, Value Creation for EV Charging Deployments.

Mercedes and BMW Global Dominance in Luxury Wanes as EV Brands Ascend. Tesla, Nio, and Li Auto emerged as forces to be reckoned with in China, where BMW, Mercedes, and Volkswagen's Audi have long controlled more than 60% of the luxury segment. Despite giving up share in China, the region still drove growth for the pair. Luxury brand cars came to another hurdle as Vehicle Buyers Craved Familiarity and Affordability During the Pandemic. 

Uber's EV Ride Service Comes to 1.4K North American Cities. Uber is responsible for a large number of cars on the road, and by extension, a large amount of pollution. To reduce that impact, the company recently introduced Uber Green, an option that provides electricity hybrid rides at a slight premium to ICE rides. So far, Uber Green has been available in around 50 cities, but Uber has announced that it’s significantly expanding it to 1.4K new North American cities and towns. This news comes alongside intel that SoftBank Sold $2B of Uber Shares and Uber's Plans to Spinout Postmates’ Delivery Bot.

GM Will Build Electric Crossovers for Honda and Acura. GM will build two battery-electric crossovers—one sold as a Honda and another sold as an Acura—within the next four years.  Honda's GM-built EV will be assembled at the American automaker's plant in Mexico, the same factory that puts the Chevy Blazer and Equinox together. That crossover will reportedly enter production in 2023. Meanwhile, the Acura will reportedly be built in Tennessee alongside the Cadillac Lyriq starting 2024. As Honda continues plans in their plant in Mexico, they are Suspending Production at its British Factory due to COVID-related supply chain issues. 

🌟Chip Shortage Snarls Auto Output Worldwide as Chips Are in Hot Demand. Semiconductor companies are asking their customers for patience as the industry works through a sharp increase in demand from makers of everything from cars to consumer electronics. The chip shortage has caused prices to rise for certain semiconductors but created massive delays across automotive requiring several to idle factories. If the problems persist, consumers may see delays in getting new cars and some electronic devices and possibly higher prices. Related, Nidec Aims to Win Over Tesla with inexpensive motors.

Aptiv Unveils New Self Driving Platform with Wireless Upgrades. Auto supplier Aptiv unveiled its next-generation technology platform for automated driving, which can be used across a range of vehicles and be updated wirelessly so carmakers can upgrade car features and fix glitches. The platform also allows the supplier to track vehicle problems and provides OTA updates so carmakers can fix issues or upgrade self-driving features in real-time rather than waiting for the next version of a vehicle. On a more fun note, AV Indy Lights Cars Will Race for $1M.

Car-Safety Regulators Urge Tesla to Recall Around 158K Vehicles. The NHTSA has requested Tesla to recall 158K Model X and Model S vehicles after reports that the touch screens fail within a few years of use. This impacts safety functions such as defogging and rear-facing cameras. That request to recall comes as Tesla is Liquidating Model S and Model X Inventory. 

Fundraises and M&A 💸

💥Sennder Raises $160M in Series D. Dynamo portfolio company Sennder raised new funding on the back of their Uber Freight Europe acqusition. The fresh funds will allow them to continue scaling out their digital freight forwarding (brokerage) platform.

Sustainment Raises $2.1M Led by Blackhorn Ventures. Sustainment builds software that helps businesses and governments discover and engage with US manufacturers. The financing will allow Sustainment to expand its software development efforts to offer products to commercial procurement teams.

OneRail Raises a $6.7M Late Seed Led by Chicago Ventures and Bullpen Capital. OneRail is an Orlando-based last mile delivery orchestration and fulfillment platform. With the funding, they plan to scale their business development and marketing efforts.

Weezy Raises $20M in Series A Led by NYC’s Left Lane Capital. Weezy is an on-demand supermarket that delivers groceries in as fast as 15 minutes. Although the company hasn’t made mention of a later US launch, the presence of the US investors would tend to suggest that. 

Shippeo Raises $32M Led by Battery Ventures. Shippeo provides real-time transportation visibility in the European market. The investment will be used to scale go-to-market and product.

Relay Payment Raises $43M Led by Addition. Relay Payment is an electronic payment platform for logistics companies. The new funding to develop new products and expand to a new Atlanta HQ.

Budbee Raises €52M Led by AMF. The Sweden-based startup offers a delivery service committed to maximizing customer satisfaction and the efficiency of the last mile. The company will use the funding for international expansion and to invest in technology and processes that will further enhance the sustainability aspects and customer experience of its services.

Gett Raises $115M Led by Pelham Capital Investments. Gett started as a competitor to the likes of Uber and Lyft but now focuses mainly on ground transportation services for business clients in major cities around the world. The company has been building out a focus on the B2B market for several years now and this most recent round is focused on doubling down on that.

Auto1 Group Announced Plans to Raise €1B in IPO. German online car trading platform Auto1 announced they are planning to list on the Frankfurt Stock Exchange in Q1. The eight-year-old company sold over 615K cars and generated €3.5B in revenue across 30 countries in 2019.

Central Logic Acquires Acuity Link, Valued at Over $100M. Central Logic, a St. Paul-based healthcare access and orchestration company, has acquired Acuity Link, a leading provider of transportation communications and logistics management software. Acuity Link’s technology powers Central Logic’s new Intelligent Transport capability, which was announced today along with the company’s real-time Bed Visibility platform.

Renault to Form JV with Plug Power for Fuel Cell Vans.  Renault Group will form a JV to develop, build, and sell long-range fuel cell electric vans in Europe with Plug Power, a US company that just received a major investment from Korean battery maker SK Group. The joint venture aims to provide "turn-key fuel cell vehicle solutions," including supplying hydrogen, fueling stations, R&D, and sales and services, the companies said.

Company Building 🛠️

Tips for Hiring Remotely. A framework to handle inbound interest in roles, hiring, and culture. In particular, the contract-to-hire could be interesting for companies worried about a candidate’s fit.

Mentors. “The thing about mentors is you can’t really ask someone to mentor you. It kind of happens organically. Someone takes you under their wing. They see something in you and want to bring it out, develop it. That’s how the best mentor/mentee relationships happen. And they are so great.”

Tips for Managing Up. Stakeholder management is an important skill for people to develop - especially early-on in your career. Tactic #6 is especially important - understanding how a superior listens and is persuaded is essential.

Who's Hiring? 👩‍💻

Developer Evangelist at Tangram Robotics in San Francisco, CA (remote ok).

Product Designer at Backbone AI in New York, NY.

Process Automation Associate at sennder in Berlin, Germany.

Check out other jobs at Dynamo portfolio companies.💥 Have you seen any interesting startups recently? Introduce us.❤️ We would love your support. Please forward to friends and share on social media.🗞️ If you were forwarded this and found it interesting, please sign up.🎙 Check out Dynamo's podcast series, The Future of Supply Chain.