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 💭

We had a stale link in last week’s Dispatch. For those looking for the details on The First 10 Systems, here you go.

Thank you to Farah and Allison for the startup referrals this 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 📦

Using Data to Understand the Truck Driver Shortage. A shortage study finds that a higher number of job postings for truck drivers are going unfilled when compared with other blue-collar jobs. Potential truck drivers prefer short-haul work, with more long-haul trucking positions staying unfulfilled. Related; Strong LTL Market Still Comes with Growing Pains and Truck Driver Availability Tghtens to Three-Year Low.

Lasership: Online Spending Levels Will Continue Post-Pandemic. This survey found that 77% of consumers will spend the same amount of money, or more, on online shopping after COVID vaccinations, and eased restrictions allow them to return to brick-and-mortar stores. Along with this, 80% of consumers still prefer home delivery of their goods purchased online. Elsewhere, Adobe predicts US eComm to Hit $1T in 2022 while Fedex’s Quarterly Profit Tripled and Revenue Jumped 23% Despite Winter Storms.

Regional and Long-Haul Trucks are Primed for Electrification. Dramatic declines in battery prices and improvements in their energy density have created new opportunities for EV trucking. However, strong policy support and coordinated investments are required to back their implementation and adoption due to the high upfront capital costs of both vehicles and charging infrastructure. This week, Industry Insiders Opined on Feasibility of Sustainability Goals in Biden's Infrastructure Plan and a study on the Implications of Replacing the Fuel Tax with Vehicle-Miles-Traveled Tax.

Amazon Expands Effort to ‘Gamify’ Warehouse Work. An increasing number of Amazon warehouse workers around the US can spend their shifts earning rewards as they compete in games that they control by completing repetitive tasks necessary to fulfill customer orders. The games are part of an “FC Games” program, which Amazon began testing at a single facility in 2017 and has since grown to offer the games to workers in at least 20 states. Amazon’s largest landlord discusses how the Logistics Real Estate Landscape Altered Due to COVID.

Packaging Automation Hits Fast Track in 2021. The pandemic and increasing demands to keep up with competitors have skyrocketed the use of packaging automation far faster than expected. Still, 85% of manufacturers are looking to expand their current portfolio of automated solutions in the exterior packaging sector (outer protection for receptacles or inner packaging), as it often demands continuous and repetitive tasks that robots could do. Related, Robots Making Distribution Centers Safer, Speedier, and Smarter and Automated Unloads and Storage are Coming to a Canadian Distribution Center.

Amazon’s Playbook on AVs. Estimates indicate that AV-based deliveries will become an impactful sector for Amazon by 2030 with over 1B packages being delivered by sidewalk AVs, 945M packages by road AVs, and 727 packages by drones. However, human-delivered packages will still be in the forefront with 11.8 packages. Also related to commercial AVs, Advanced Driver Assistance Systems Reduce Heavy Truck Crashes by 23%.

COVID Pushes Japanese Firms to Overhaul Supply Chains. When China went into lockdown following the COVID outbreak, supply chain dependence on the country was diminished. The loss of Chinese sources and Japan’s heavy reliance on cars, auto parts, and medical PP, resulted in Japan facing shortages. Japanese companies have now begun to retool their supply chain to become more efficient and less dependent on outside counties for vital materials, especially in the medical field. But the reality is that The Global Supply Chain Is a Mess and Shipping Logjams are Spreading Due to the Crush of Imports.

Walmart Retools Dallas Store Into Fulfillment Center. The new facility aims to allow more customers quicker access to general merchandise and fresh groceries. Customers will place their orders online and pick up merchandise and groceries at the fulfillment center. It will be Walmart’s first Market Fulfillment Center in Texas and only the third in the US.

Mobility 🚗

Highlights from VW’s Battery Event. VW Group said it would reduce the costs of producing its batteries by up to 50%, build multiple battery factories worldwide, expand its network of charging stations, and transition to solid-state technology to cut costs and boost efficiency. The goal is to make EVs with longer ranges and quicker charging times. Check out some noteworthy pieces diving deep on VW’s plans to Build Six EV Battery Factories in Europe and VW suddenly Cutting-off Korean Battery Cell Suppliers.

Audi Abandons Combustion Engine Development. Audi justifies the decision as a response to the EU plans for a stricter Euro 7 emissions standard, which is the final standard before all cars become zero-emission. Due to regions of the world where energy supply and charging infrastructure are less well developed, Audi will continue to sell combustion engines but will not develop an entirely new generation of petrol or diesel engines. But cross-country rival BMW Has No Plans to Stop Developing Internal Combustion Engines while ICE-happy America sees a bill proposing Government Incentives for Purchasing an eBike.

SAIC Motor Plans to Use Luminar Sensors in High-Tech Line of Vehicles. Luminar’s lidar sensors work by bouncing laser beams off the surfaces and objects around a vehicle, then rapidly generating a 3D point map that a vehicle’s on-board computers can read. The new technology will be marketed under “R brand” and is expected to be in production in 2022. Also in the world of high tech cars, BMW's iDrive 8 Assists Drivers Using ML and Natural Language Processing while Geely and SK Invest in $300M Mobility Fund.

Trains Could be Making a Comeback in America. One month after COVID hit America, ridership on the Amtrak passenger rail network was down by 97%. As vaccines roll out, CEO William J Flynn aims to double Amtrak’s pre-pandemic ridership in the next two decades. More frequent rides will be provided on established corridors and new routes will be added such as the Gateway Project (the renovation of the Northeast Corridor rail line between Newark and New York City). Related; Wabtec is Making a Battery Powered Train and Amtrak Fights for Mobile-New Orleans Passenger Service to STB.

UK Government Pledges £3B in Full Bus Market “Shake-Up”. The £3B package includes investments in 4K greener buses powered by electricity and hydrogen that must be built in Britain. The funding helps cities and regions across the country decarbonize public transportation, recover services, and safeguard the UK bus manufacturing industry. As more people begin to commute back to work, it's hard not to ignore The Post Pandemic Future of Shared Mobility. Also, in the UK; Uber Grants Vacation Pay, Pensions to UK Drivers in Change of Job Status while Oxford Becomes first UK City to Introduce Zero-Emission Zone

Foxconn Hints at Making EVs in the US while Nidec Plans to Supply Motors for Foxconn’s EV Initiative. The Apple phone assembler Foxconn not only raised the possibility of manufacturing EVs in the US but hinted at additional partnerships with American companies as it expands into the automotive industry. For now, Foxconn and Japanese company Nidec unveiled a settlement on supplying electrical powertrains that consist of gathering parts together with the motor, gears, and driveshaft that propel a car. Underpinning this is the fact that EV Startups are Forecasting Steep Growth as Plug-in Hybrids Dominate European EV Market.

Price Target for Tesla in 2025. Last year, ARK estimated that in 2024 Tesla’s share price would hit $7K per share or $1.4K adjusted for its five for one stock split. Based on updated research, adjusted share price estimates are approaching $3K in 2025. The new number can be attributed to several new factors including the probability of the company achieving fully autonomous driving within 5 years and assumptions for a human-driven ride-hail service. Speaking of Tesla, Tesla on Autopilot Crashes into Michigan Police Car.

The Current Dealership Management System Playing Field. The new DMS player in the market, Tekion, provides dealers with better pricing, contract terms, improved technology, and flexibility. Historically, Reynolds and Reynolds, CDK Global, and Cox Automotive's Dealertrack dominated the market, but customers say the switch to the new company is more simple than ever before. Tekion is signing up dealers when the overall market for DMS software is in flux, giving dealers more choices for a platform that fits their stores' needs. Totally unrelated, A Salt Monopoly Could Spike Car Accidents in the Midwest.

Fundraises and M&A 💸

Aerovel Raises $2.5M in Series B. The aviation company manufactures Flexrotor, the most advanced Group 2 VTOL unmanned aircraft. Aerovel is using the funds to accelerate growth, increase production capacity and hire additional engineers.

Jiffy Raises £2.6M in Seed Round Led by LVL1 Group. Jiffy is a new on-demand online supermarket that aims to deliver fresh groceries and essentials in around 15 minutes. The funding will be used to aid its launch in the UK.

Flytrex Raises $8M. Food and retail drone delivery service Flytrex was awarded the funding via a grant from the Israeli Innovation Authority. The fresh capital is expected to further expand Flytrex’s US footprint as well as increase production and R&D capabilities.

Unagi Raises $10.5M in Series A Led by Ecosystem Integrity Fund. Unagi makes portable and design-centric eScooters capable of being carried up a three-story walkup. The company plans to expand its subscription service to new cities in the US, including Austin, Miami, Nashville, Phoenix, San Francisco, and Seattle.

Fort Raises $13M Led by Prime Movers Lab. The Philadelphia-based company focuses on safety software for collaborative robotics and other autonomous systems across a wide spectrum of categories from warehouse fulfillment and manufacturing to delivery and transportation. The funds will allow Fort to rapidly scale the company and to ensure that robotic systems are safely deployed across all industries.

Charge Amps Raises $15.3M Led by Swedbank Robu. The Swedish EV charging company develops smart charging stations, cables, and cloud software. The company will use the funding to expand in key European markets including the Nordic countries and the UK, for R&D, and to prepare for an IPO, which is planned for next year.

Fridge No More Raises $15.4 Series A Led by Insight Partners. The instant food deliverer aims to be a go-to replacement for your grocery store. The funding will be used to bring on additional staff and expand across New York City and the East Coast.

Stor.ai Raises $21M in Series A Led by Meitav Dash and Mizrahi Tefahot. The Israeli company is the developer of a grocery delivery platform. It plans to use the funding in part to expand across North America, Latin America, and Europe.

Flowspace Raises $31M in Series B Led by BuildGroup. Flowspace, an LA-based on-demand warehousing fulfillment startup, saw the number of orders shipped on its platform increase ten times during the past year. The money will enable them to expand their network of fulfillment centers to build on pandemic-driven growth.

Lightyear Raises €48M Led by Zero Point Holding. The Dutch startup is said to be the solar EV pioneer. The capital is supposed to help Lightyear realize the first customer deliveries of its long-range solar car Lightyear One by the end of this year.

Nimble Robotics Raises $50M in Series A Led by DNS Capital and GSR Ventures. Nimble Robotics is an eComm warehouse automation company that utilizes deep imitation learning. They plan to use the funds to deploy more robots to their customers and expedite hiring for further product and technology development.

Sun Country Airlines Raises $218M in its IPO. Sun Country Airlines is a low-cost hybrid airliner that dynamically deploys shared resources across synergistic scheduled service, charter, and cargo businesses. Net proceeds will be used to repay outstanding amounts under the CARES Act Loan and for general corporate purposes.

Weee! Raises $315M in Series D Led by DST Global. Weee! is an online grocer specializing in Hispanic and Asian foods. The new capital will be used to accelerate their geographic expansion further, build a more robust and diverse product assortment, recruit exceptional talent, and invest in engaging the broader Asian and Hispanic communities with state-of-the-art personalization features.

Olo Raises $450M in its IPO. Olo, which stands for “online ordering,” is a service enabling customers to order food via text message. It has grown into one of the leading eComm providers for chains, offering online ordering, delivery integration, personalization, and other software-based services to more than 64K restaurants across 400 brands. The company said proceeds from the offering would go toward general corporate purposes as well as potential acquisitions.

Momenta Raises $500M in Series C Led by SAIC Motor, Toyota, and Bosch. Momenta is an autonomous driving company from China and aims to build the “brains” for AVs. The investment marks an important step toward the firm’s international expansion, as in a few months, the startup will open its first European office in Stuttgart.

Kunlun Raises $2B Led by CITIC Private Equity Funds Management. Kunlun, a unit of the Chinese search giant Baidu, manufactures chips currently used mainly through its parent company on smart EVs and cloud computing. Baidu is considering commercializing its AI chip design capabilities to make the Kunlun unit a standalone company.

SmartKargo Raises Undisclosed Round Led by M33 Growth. SmartKargo is a leading cloud provider of air cargo solutions, extending markets and enhancing revenue growth for global airlines. The company has recently launched a solution that enables airlines to open new streams of revenue with eComm shipping and package delivery, and the new funding will allow them to accelerate their growth.

Canadian Pacific Merges with Kansas City Southern in $25B Deal. If approved by regulators, the deal would unite two of the major North American freight carriers, linking factories and ports in Mexico, farms and plants in the midwestern US and Canada’s ocean ports and energy resources. This would be the first freight-rail network linking Mexico, the US, and Canada.

Cruise Acquires Voyage. Voyage is the AV startup that spun out of Udacity. The acquisitions will help Cruise, the self-driving car company based in San Franciso, deliver a game-changing self-driving product.

SPAC Radar 📡

Arbe Robotics in $572M Deal with Industrial Tech Acquisitions SPAC. Tel Aviv-based Arbe is developing 4D radar arrays for AVs with potential applications in both the consumer and industrial spaces. Industrial Tech Acquisitions is a blank check company sponsored by Texas Ventures, a leading technology, and venture capital firm.

Helbiz in $30M PIPE Deal with GreenVision Acquisition SPAC. Micromobility company Helbiz expects to go public in the second quarter, becoming the first company in the space to be listed on the NASDAQ stock exchange. The additional funding will help fuel global growth.

Vista and Apollo Halt in $15B SPAC Discussions. Vista and Apollo halt talks centered on a merger featuring Vista's Solera Holdings, DealerSocket, and Omnitracs. The halt comes after the Nasdaq Composite Index of more than 3K tech-related stocks has fallen 4% since February 12 and posted three weekly declines in that span.

Company Building 🛠️

TWiSt: Tobi Lutke of Spotify. Shopify is clearly having an impact on supply chains and is a worthwhile study with regards to philosophy, business model, and go-to market. The sections on shared priorities and technologies of the future are particularly interesting.

Learning from Beyonce's Content Strategy. We can learn from everyone so don’t judge based on the title… this can be relevant to supply chain startups. In particular, the funnel is a great visual and tool to apply for users, customers, etc.

The First 90 Days. A simple and practical framework for executives to ramp up in their first quarter in a new role.

Who's Hiring? 👩‍💻

Dev Ops Engineer at Milk Moovement in St. John’s, Halifax (remote ok).

Senior Decision Analyst at nextmv in Philadelphia, PA (remote ok).

Field Operations Manager at Gatik AI in Dallas/Ft. Worth, TX.

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.