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 💭

Shoutout to Sydney Thomas, Sam Saad, and Abel Tiong for the recent intros! Also, huge congrats to the Leaf Logistics team for their recent raise (scroll to the Fundraises and M&A section to learn more).

Oh, how could we forget? Happy Valentine’s Day! We sure do ❤️ and appreciate all the support from all of our readers. If we could send flowers and a box of chocolates to each one of you - we would.

We Are Dynamo,

Clay, Santosh, Jon, and the rest of the Dynamo team

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

Supply Chain 📦

Do Robots Really Destroy Jobs? Evidence From Europe. Combining industry-level data on employment by skill type with data on robot adoption in the manufacturing industry, the study finds that robot use is associated with an increase in aggregate employment. Results are robust across a wide range of assumptions, estimator choices, sector selections, and time periods and they hold whether looking at absolute numbers of robots, robots per 1K workers, or the percentile of robot density. The study analyzed data between 1995 and 2017 in more than 40 countries, including all EU-28 countries except for Cyprus and Luxembourg. Despite Robots Making Cocktails, Coffee, Even Food At Beijing Olympics, fears of unemployment still persist as Warehouse Workers Weigh In On Automation In The Workplace.

The Future Of Autonomous Trucking. An expected shortage of 160K drivers in the local trucking space by 2030 and the pandemic-induced online spending surge have accelerated interest in autonomous trucking. According to Gatik’s CEO, “autonomous trucking would cut logistic costs by up to 35%,” while 21 states in the US already allow for driverless operation despite a lack of a federal policy. With companies such as Knight-Swift Embarking On Trucks Autonomous-Tech Collaborations, startups such as Gatik and TuSimple Are Making Driverless Testing Permanent In Route To Commercialization.

To No Surprise, Port Congestion Continues. Congestion remains on both US coasts, with the Port of LA reporting 40 ships waiting to dock. With Lunar New Year factory closings in Asia and the consequent drop in export production, North American terminals hope to reduce existing congestion. Moreover, US Ports Are Expected To Handle 13M TEUs During 1H2022, increasing 1.5% y/y and topping a record 35.7% increase during 1H2021. Imports for 2021 totaled 25.8M TEUs, a 17.4% increase over 2020’s record high of 22M TEU. Billions Of Dollars Set To Boost US Port Projects hope to tackle existing challenges such as equipment shortages, worker availability, and lack of space.

Full Customs Controls At EU Borders Cause Chaos For UK Logistics. Brexit continues to be an enormous deterrent to trade, especially for small businesses. Following the recent implementation of full customs controls, international trade for companies such as Diamond Logistics is down 70%, which is primarily attributed to shipments from the EU. Challenges faced by companies include last-minute notifications of changes in countries' requirements and commodity codes leading to goods being held up or returned. Services that normally take 3-5 days are taking more than double that time, increasing concerns for shipments of perishable goods. For a change of pace, check How Shippers View The Current Freight Market and 6 Key Elements Identified By The World Shipping Council To Decarbonize Shipping.

Supply Chain Issues Decimate US Truck Manufacture And Maintenance. North American trucking is being hobbled by shortages of parts, keeping fleets off the roads, while drivers are still in short supply. Many carriers have reported 6%-10% of their fleet being out of service, with one carrier with a fleet of 2.5K trucks having 11% of them side-lined at one point. In addition, downtime for trucks has recently doubled to seven to 10 days. Operators are also facing challenges getting hold of new or second-hand trucks as orders for Class 8s were down 50% y/y in January - the average price almost doubled over the past year topping $70K. Despite driver shortages being addressed by initiatives such as Yellow Corp’s Driver School Aiming To Train 1K Drivers In 2022, demand for trucks doesn’t seem to be stopping anytime soon as Retailers Look To Have Their Own Trucking Companies. 

Wing Drone Delivery Heads To First US Metro Area. The Alphabet-owned company has been trialing drone-delivery services in several cities globally, with more than 130K commercial deliveries completed to date. In the coming months, Wing plans to launch in North Dallas to enable residents’ orders for a range of goods from local businesses. The company also plans to use the trial to test a “new model for drone delivery” where employees at each local business — beginning with Walgreens — will operate their own drone hub, rather than wasting time transferring orders to a central hub. On more news in the air cargo space, DHL Eyes Major Air Hub Expansion In US and Logistics Provider Flexport Interested In Self-Flying Cargo Jets.

Food Suppliers Wade Into Logistics As Trucking Rates Soar. Shippers encounter a tricky-to-navigate trucking market as a deluge of freight pushes up prices. Spot reefer rates have surpassed $3/mile, with contract rates increasing in lockstep. Meanwhile, LTL prices are historically high and surging demand has led carriers to turn away customers. Besides pricing and capacity issues, reliability and poor visibility into shipment status have worsened shippers’ sentiment in the market. As a result, suppliers are opting to build private fleets despite its asset-intensive nature. Separately, Rising Tire Prices Continuing Throughout 2022 increase Inflation Pressures Threatening More Trucking Bankruptcies. 

🌟To Improve Your Supply Chain, Modernize Your Supply-Chain IT. “Despite the advantages that modern supply-chain-planning IT systems offer, an overwhelming majority of enterprises still use manual or outdated methods.” Nearly 75% of supply chain functions still use spreadsheets today. However, the good news is that 90% of executives surveyed by McKinsey answered that they plan on implementing new solutions within 5 years.

Mobility 🚗

GM Plans Six-Fold Increase in 2022 Electric Truck, SUV Production. GM plans to deliver 400K EVs in North America from 2022-2023. They are also planning to re-start production on the Chevrolet Bolt EVs. These substantial investments emphasize GM’s commitment to a pivot to EVs in response to pressure from both competitors and customers. For related news, check out Ford Is Going to War for More Software Engineers

The US Army Is Going Electric – And Wants To Be Net-Zero by 2050. The US Army released its comprehensive climate strategy, of which a key component is building an EV fleet. The army is planning to reduce emissions to 50% of 2005 levels by 2032. It is also planning to electrify light-duty non-tactical vehicles by 2027 and all non-tactical vehicles by 2035. This is an incredible opportunity for stakeholders in EV tech to partner with the US Army in reducing their emissions. In related news, look at Tesla Delays More Model X Deliveries as Elon Musk Admits To Problems In The Production Ramp and Ram Electric Pickup Will Have A Combustion Range Extender: CEO. 

🌟Trucker Blockade Of US-Canada Border Bridge Forcing Carmakers To Cut Production. The blockade is composed of a group of Canadians protesting the nation’s cross-border pandemic-related restrictions. The Ambassador Bridge is a major trade route with 323M worth of goods crossing daily, a quarter of US and Canada’s trade volume. This blockade has caused delays in production for various automakers including GM. It also creates another headache for the auto industry to deal with as they grapple with the chip shortage and various parts shortages. For other news, check out Siemens, Ford Collaborate On F-150 Lightning Charge Station Pro and Ford’s Mobile App Update Hints At New Driverless Parking Features.

Right to Repair Bill Could Allow More Independent Shops to Work on EVs and Hybrids. The Bill(H.R. 6570) would allow owners and independent shops equal access to tools and data as automakers and dealerships. Currently, limited access to vehicle data is reported to affect repairs for 37% of US vehicles. The bill would be a useful tool for spurring competition in the vehicle repair industry, potentially leading to benefits downstream for consumers. The logistics of what kind of information would be privy for public knowledge is still up in the air and will likely be debated on by various stakeholders, potentially jeopardizing the bill as a whole. In other news, Ford Signs Top Tesla Engineer Alan Clarke To Boost EV Development.

‘Full Self-Driving’ Clips Show Owners Of Teslas Fighting For Control, And Experts See Deep Flaws.  The Washington Post had footage of a self-driving test run reviewed by a group of experts. The footage includes scenes where the Tesla was making critical errors that could be incredibly complicated to patch. Some see these faults as insurmountable hurdles but many, including the experts on the board, appreciate the Tesla experiment of releasing FSD for what it could contribute to our overall understanding of AVs. For related information, check out Tesla Plans To Build New Design Center In Beijing This Year, Transport For London Introduces New, Higher Specification All-Electric Bus Fleet.

Jeep Joins The Micromobility Revolution, Drops Its First Off-Road, Electric Kick Scooter. Yet another automaker is expanding into the micromobility space as Jeep partners with Razor to create an eScooter. The RX200 has the ability to go both on and off-road, but unfortunately can’t travel far distances or hit high speeds (max 12mph). While not particularly impressive at a moderate price, this is an indicator for the overarching race to truly make micromobility mainstream. For related news, check out Bugatti Goes Full-Electric With Surprise Bytech Scooter and New Zealand's Micromobility Sector Is Gearing Up for Big Things.

Zoox Robotaxis Are Already Mingling With The Public On Semi-Private Test Courses. The Amazon subsidiary is ramping up to potentially begin testing its robotaxis in more dynamic environments. The cube-like taxis can drive bidirectionally and will be able to drive 4 people at up to 75 mph. They’re currently being tested at campus like environments where there is an element of dynamic interaction but not an overwhelming amount. As we’ve discussed in previous articles, the more exposure AVs get to dynamic environments the more reliable they become as AIs improve. In related news, Ford Wants To Hide Spy Drones In Autonomous Cars.

Fundraises and M&A 💸

💥 Leaf Logistics Raises $37M Led By Sozo Ventures. Leaf Logistics was founded in 2017 with the mission to improve transportation planning through strategic use of data analytics and machine learning. The platform connects shippers, providers, and partners to gain network efficiencies and unlock a forward view of tomorrow's transportation market. This milestone comes after a 10x annual revenue increase and the growth of its nationwide transportation network to more than $23B in data. The funds will be used to grow its team. and scale product development and commercial deployment.

Rino Raises $3M Pre-Seed. Rino is a 10-minute grocery delivery platform in Vietnam. Investors include Global Founders Capital, Sequoia Capital India, Venturra Discovery and Saison Capital. The funds will be used to rapidly expand its services to the most densely populated areas in Vietnam.

Redkik Raises $3.3M Co-led By Greenlight Re Innovations and MS&AD Ventures. Redkik is a SaaS insurance provider offering per shipment coverage for all parties within logistics and transportation. Additional investors include Fintech Ventures Fund, Plug and Play, and North Karelia Growth Fund. The funds will be used to accelerate the growth of its platform.

Micropolis Robotics Raises $4M Led By Mindrock Capital. Micropolis Robotics is a UAE-based company building autonomous rover robots. The funds will be used to accelerate commercial production capabilities, R&D, and business development.

BasiGo Raises $4.3M Led By Novastar Ventures. Basigo is an EV technology and financing company bringing electric bus services to Sub-Saharan Africa. Additional investors include Moxxie Ventures, Nimble Partners, Spring Ventures, Climate Capital, and Third Derivative. The funds will be used to launch sales and deploy its EVs.

GoComet Raises $7M Led By Rider Global and Atlas Ventures. GoComet is a multi-modal logistics and transportation platform that enables businesses to automate their end-to-end logistics. GoComet’s leading customers include Sun Pharma, Sapmer, Glenmark, Polyplex, Alliance Tyres, Lupin, and ACG. The funds will be used to further develop its platform and accelerate its customer growth and expansion in the US and Europe.

LandscapeHub Raises $9M Co-led By Klaff Realty and Hyde Park Venture Partners. LandscapeHub is a B2B marketplace that connects landscape and nursery buyers with a network of suppliers. Additional investors include Hersch Klaff, Open Prairie Rural Opportunities Fund, Concentric Equity Partners, Great Oaks Venture Capital, Hyde Park Angels, and Frank Mariani. The funds will be used to expand its US presence and increase platform capabilities.

Odys Aviation Raises $12.4M To Build VTOL Aircraft. Odys Aviation f.k.a Craft Aerospace builds vertical take-off and landing aircraft for major airlines. The funding came from Giant Ventures, Soma Capital, Countdown Capital, Nikhil Goel, and Kyle Vogt. The freshly raised capital will go towards turning its prototype into reality.

Parade Raises $12.7M Led By Menlo Ventures. Parade is a truckload capacity management platform empowering 3PLs to go digital. This milestone comes after a 500% increase in its customer base last year. The funds will be used to accelerate digital adoption, grow its team, and expand capabilities.

Morai Raises $20.8M Series B. Morai provides AV developers with automotive simulation tools to verify the safety and reliability of self-driving systems. This round was led by Korea Investment Partners, KB Investment, and Korea Development Bank. Additional investors include Naver D2 Startup Factory, Hyundai Motor Group, Kakao Ventures, and Atinum Investment. The funds will be used to enhance their technology and expand globally.

Traxens Raises $25M and Acquires NEXT4. Traxens provides smart-tracking solutions of containers for international transport. The funds will be used to expand globally and develop new partnerships. The acquisition of NEXT4 enables Traxens to develop highly complementary tracking solutions and software applications to offer the best of their functionalities to their customers. 

DOZR Raises $27.5M CAD Co-led By Builders VC and BDC Capital. DOZR offers eComm and marketplace solutions for the online rental of heavy equipment. DOZR.com has become the source of truth and transparency for heavy equipment rentals, welcoming more than 2M website visits last year. The funds will be used to expand into new markets and grow its team.

Xpressbees Raises $300M Co-led By Blackstone, TPG, and ChrysCapital. Xpressbees is an express logistics service provider in India catered towards end-to-end supply chain solutions. This latest round puts Xpressbees at a valuation of $1.2B. The funds will be used to continue scaling its platform.

ElasticRun Raises $300M Led By Softbank Vision Fund II. ElasticRun provides a logistics and distribution platform designed to help businesses in India reach traditionally unserviced consumers. Additional investors include Goldman Sachs and Prosus Ventures. This latest round puts ElasticRun at a valuation of $1.5B. 

Flexport Raises $935M Led By a16z and MSD Partners. Flexport is a full-service global freight forwarder and logistics platform using modern software to enhance the user experience in global trade. Additional investors include Shopify, DST Global, Founders Fund, and Softbank Vision Fund. The funds will be used to accelerate product development, expand into new geographies, and support logistics technology innovation by investing in new startups to make supply chains more efficient, transparent and inclusive. 

Transtura Acquires WazoMoney. Transtura is a ride-hailing and shared mobility startup in Africa. The acquisition of WazoMoney enables Transtura to expand its platform to include payments and a marketplace solution becoming a one-stop shop for all vehicles and mobility needs. The terms of the deal were not disclosed.

Vontier Acquires Driivz. Vontier is a ​​global industrial technology company focused on smarter transportation and mobility. The Acquisition of Driivz’s end-to-end EV charging and smart energy management software platform accelerates Vontier’s strategy to provide smart, sustainable mobility solutions. The terms of the deal were not disclosed.

Maersk Acquires Pilot Freight Services For $1.68B. The acquisition of Pilot will enable Maersk to extend its integrated logistics offering deeper into the supply chain of its customers. The acquisition is subject to regulatory review and approval which is expected to be obtained by Q2 2022. Both companies will operate as independent businesses and run their operations as usual until that time.

Frontier Airlines Acquires Spirit Airlines For $6.6B. Frontier and Spirit are both ultra low-cost carriers based in the US. This acquisition will form the nation’s fifth-largest airline. The airlines said they needed to join forces to compete with the four largest airlines that control the vast majority of the US market and argued that the merger will continue to save consumers money. 

SPAC Radar 📡

Quanergy Completes $175M SPAC Listing. Quanergy creates LIDAR solutions for automotive and IoT applications. That total includes $50M in cash, and $125M in committed funding via Luxembourg-based investor Global Emerging Markets (GEM) Group, from which a $25M advance can now be drawn.

Company Building 🛠️

Pre-Written Company Policies. We stumbled into this pre-written set of company policies (formatted for Notion!) for early stage companies. Could be handy for some.

More Line of Businesses Driving Tech Spend. The TLDR is that ​​IT is still consulted around topics of security and integrations but the line of business needs rule. In our opinion, this is how it should be - tech drives business, not the other way around.

The Dangers of Channel Sales. All of these are relevant but we’d note that channel sales works best when a startup has a reputation in the market. It’s hard for a sales person at another entity, with different incentives, to pitch a no name product - that’s a lot of work. 

Who's Hiring? 👩‍💻

Sales/Business Development Manager - AI - SaaS at Vector AI in Dallas, TX.

Head of Analytics at Nextmv (remote ok).

USA Operations Lead at Manna in the US (remote ok).

💥 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.