Dynamo Dispatch. 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 💭

Say hello to Milk Moovement, the newest member of the Dynamo family!

We Are Dynamo,

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

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Supply Chain 📦

Partial Strike at Port of Montreal as Union, Employers Dig In. Longshoremen at the port of Montreal--Canada’s second largest port--are set to start a partial strike after their employers moved to suspend guaranteed minimum pay in response to an 11% dive in cargo volumes. The Canadian Union of Public Employees stopped short of a full strike. Longshoremen won’t work overtime on weekdays or at all on the weekends, but will handle containers related to the pandemic and provide grain offloading services. Related Port of Montreal: Why it Matters and What a Full Strike Could Mean. 

Pandemic-driven Stockpiling Left American Consumers Flush With Some Household Goods. A year ago US consumers were stockpiling household goods such as toilet paper and hand sanitizer. The impact of this panic-buying is beginning to show in data where bath tissues sales in January have declined 4% from a year earlier, prior to the pandemic. America’s paper making mills which were operating at 100% for most of the last year are now operating at 90%-95%. Now that the supply chains have adapted to the increase in demand and the end of the pandemic is on the horizon, US consumers are now going through their stockpiles instead of buying more toilet paper.  In construction supply chain, Lumber Frenzy Drives Up Home Prices as Suppliers Can’t Keep Up and in case your pup isn’t ready for athleisure season There is a Dog Leggings Shortage. 

Kroger Is Amassing a Robot Army to Battle Amazon, Walmart. The largest traditional supermarket chain in the US is making a big, risky bet on robotics and fulfillment centers. Kroger is investing $50M a pop in “sheds” where robots as big as dishwashers, that can pick 50 item orders in less than 5 minutes, will retrieve customer orders. These items will then be sorted and delivered to homes by humans. This bold move comes as shareholders and investors are increasing the pressure on Kroger to get grocery delivery right. In case you needed some more news about robots delivering food Nuro, Domino’s Team up for Autonomous Pizza Delivery and Chick-Fil-A is Testing Robot Delivery. 

UPS stretches ‘Afternoon’ to Midnight with Return to Delivery Guarantees. UPS and FedEx have announced service guarantees for overnight air and international parcel shipments. In UPS’s case, the guarantee for afternoon deliveries has been stretched to 11:59 p.m.. FedEx is offering the same guarantees, but it is unclear if their definition of afternoon is as broad as UPS. Both integrators had previously suspended service guarantees due to the COVID-19 pandemic. Related Convey Releases March Data for FedEx, UPS, USPS & Regional Carriers On-time Performance. 

🌟📊MHI: Tech Spending Helping to Boost Resilience. eCommerce has been the biggest beneficiary of the pandemic, with sales up 44% in 2020. This rapid transformation has led 49% of supply chain leaders to accelerate spending in digital technologies that make their supply chains more resilient. The digital tools that are the most sought after by supply chain leaders are cloud computing and storage, inventory and network optimization tools, and sensors and automatic identification. Robotics is gaining more momentum in the industry through use cases such as picking and packaging and receiving and put away, but 25% of the supply chain leaders surveyed said they had no plans to use robotics operators. Related How The Pandemic Drove Retailers to On-Demand Warehousing and Amazon to Test White-Glove Delivery Service of Furniture, Appliances. 

Manufacturers Approach to B2B eCommerce Selection. 70% of industrial companies will implement a B2B eCommerce solution by 2023 compared to just 50% today. This means that the industry is primed to go through rapid digital transformation. Flexibility and automation will be two essential parts of this transformation. B2B eCommerce must be flexible so enterprises can adapt to their clients needs and automation--especially for time consuming processes like RFPs--can improve the B2B eCommerce for every stakeholder. Related Levi’s CFO Plans to Increase Capital Spending on Digital Initiatives. 

📊Manufacturing Industry Outlook.  The manufacturing industry forged ahead while COVID-19 turned the US economy on its head and 63% of executives are optimistic about the future of the industry. Some of the reasons for this optimism include, advances in solving supply and demand forecasting, digital investments for supply chain resilience, and how the industry could react to workforce agility. The lessons learned from the pandemic have forced the industry to prioritize and experiment with new technology and there could be a lot of innovation in this sector for years to come. Related Fed Sees Supply Chain Issues Growing Despite Better US Outlook. 

📊Review of the TMS landscape.  Besides rising logistics cost and challenges in the last mile, supply chain leaders have an otherwise optimistic outlook. Nearly 70% of respondents said that they had trouble finding transportation partners to meet growing last mile demand, but 91% said that their third party providers will adequately meet their needs in 2021. 37% of respondents also said that they expect transportation costs to continue to rise in 2021. 84% of respondents said they have seen an increase in demand for last mile services, but in order for that demand to pay off they must find the right partner. This will be a critical area for innovation in the future. Related Shipping Rates Rocketing Again, with Contract Talks A Game of Musical Chairs

Shipping Rates will Stay High Through 2021. Importers are locking down container shipping prices that are up to 50% higher than they were a year ago to avoid volatile and even more expensive prices. Capacity is still stretched and there are no signs of that ending any time soon, which makes analysts think that rates will stay this high into Q3 of this year. These prices are sparking fears of inflation and creating headaches for business owners around the world. In other shipping news Ship Logjam at California Ports Is Easing After March Import Deluge and Port of Savannah Container Moves Jumped 48% in March

Unreliable supply of Moderna COVID-19 Vaccine Disrupting Provincial Vaccination Programs. Delays in the delivery of the moderna vaccine are disrupting vaccination programs across Canada. The last on-time shipment was on March 11 and before March 11 the last shipment to arrive on-time was in January. Both Pfizer and Moderna cut shipments in February as they needed to adjust production. While Pfizer shipments have since arrived like clockwork, Moderna’s have not. Canada’s procurement minister has said this is due to quality control issues. Totally unrelated Walmart Establishes Supplier Policy to Protect Pollinators. 

Mobility 🚗 

France is Giving Citizens $3K to Get Rid of Their Car and Get an eBike. This week France announced a “cash for clunkers” plan which gives citizens a $3K grant to buy an eBike if they hand over diesel-powered cars. This measure is a part of a climate bill that aims to reduce greenhouse gas emissions 40% by 2030. If this becomes law, France would  be the first country that offers people a chance to trade an aging car in for an eBike. Related New York City Selects Bird, Lime, and VeoRide for its Coveted eScooter Pilot and Portland Will Pilot Nike’s Recycled Rubber Bike Share Stations.

Consumers Warm up to EVs but Remain Wary of Price. In a new survey, more than half of respondents in the UK, Italy and France said that they would consider an EV as their next purchase, while in the US and Germany nearly half of the respondents said the same thing. The biggest reason that consumers in the US and Europe don’t purchase EVs is the price relative to a gas-powered car. This shift in attitudes comes at an inflection point for the auto industry, which is releasing more EVs than ever before and highlights the importance of government subsidies for EVs. Related Almost Two-Thirds of Urban Residents Support Banning the Sale of New Fossil-Fuel Cars in Europe after 2030 and Shell Reveals Charging Network Plans for the UK.

🌟The Next Electric-Car Battery Champion Could Be European. Europe’s explosion in EVs has created an epic rush to build an EV battery supply chain that crosses the continent. European governments have pledged more than $7.3B for this effort. Traditional car making countries such as the UK, France, and Germany see this as a way to be competitive with battery technology while supporting their traditional manufacturing industries. With this palpable interest and capital infusion, BloombergNEF estimates that Europe could see its share of global battery production rise to 31% by 2030 from just 7% last year. In other EV battery news Lego-style Battery Swapping System for EV and Rivian secures Samsung SDI to Supply Batteries. 

GM to Launch New In-Vehicle Navigation System. GM plans to launch Maps+--a more convenient in-vehicle navigation system--in about 900K 2018 model year and newer vehicles. This navigation system is part of customer’s connected service plans which range from $15-$45 per month. GM sees this as a way to deliver a highly-personalized user experience. Elsewhere in Detroit, Ford’s Hands-Free BlueCruise Driving Feature Coming Soon to the F-150 and Mustang Mach-E. 

Intel in Talks to Produce Chips for Automakers Within Six to Nine Months: CEO.Intel is in talks with companies that design chips for automakers about manufacturing those chips in Intel’s factory network. This move comes as Intel, one of the last companies in the semiconductor industry that designs and manufactures its own chips, said it would open factories up outside customers and build more chips in the US to counter Asian dominance in this area. Intel also told the White House officials that the company would open its existing factory network to provide immediate help to American companies with assembly line disruptions such as Ford and GM. Related Huawei to Invest $1B on Auto Technology and Daimler Hiring 1K Programmers. 

‘DJI Automotive’ Dives Into the World of Autonomous EVs. DJI--a drone maker--is creating sensors and perhaps more for autonomous EVs. Images have emerged which show that DJI would not be making vehicles, but rather making sensors that would be the eyes and brains for the AVs. This move comes at a time when DJI wants to diversify its offerings and find new markets for its autonomous sensing technology. In other automotive news BYD Introduces Four BEVs Fitted with the Blade Battery and Mazda launches its first EV in California. 

Uber Posts Record Demand for March. Uber reported more bookings in March 2021 than in any other month since the company was founded in 2009. This record occurred as vaccination efforts have accelerated in the US. Uber’s matchless month has led to the first-world problem of not having enough available drivers to meet this rebound in demand. This surge in demand has forced Uber to spend $250M on bonuses to boost driver availability in the near term. Meanwhile, at Aurora, The Stakes are High after Uber ATG purchase.

GM and Toyota Take Differing Paths in China. Toyota will be revealing its small, low cost EV and an eSUV for China on Monday. The automaker has long called for small EVs, but the fact that this announcement will be paired with a mid-size SUV shows the challenges that the automakers is having in producing small, safe, low-cost EVs. GM’s Hong Guang Mini EV has been a smash hit in China which means there is a market for small EVs, but Toyota will face stiff competition for its EVs to dominate this market. Closer to home, GM and LG Chem Collaborate on Battery Factory in TN.

Fundraises and M&A 💸

💥Milk Moovement Raises $3.2M Led by Dynamo Ventures. Milk Moovement is the newest member of the Dynamo family and is building software for the dairy supply chain. The startup’s software tracks all milk shipments and delivers real-time insights to producers, processors, transporters, and cooperatives. The fresh capital will be used for product development and international expansion. Welcome to the Dynamo family! 

Anari AI Raises $2M Led by Earlybird. Anari is a cloud-based AI chip factory that makes custom chips. The company’s AI enables them to make chips in weeks instead of 12-18 months. 

Dat Bike Raises $2.6M Led by Jungle Ventures. Dat Bike is a Vietnamese startup that wants to be the top eBike provider in Southeast Asia. Dat Bike offers eBikes with three times the performance and two times the range of most motor bikes on the market. The new funds will be used to expand by building its supply chain in Southeast Asia. 

Paxafe Raises $2.25M Led by Ubiquity Ventures. Paxafe usesAI and machine learning to classify and contextualize supply chain data. The startup’s platform specializes in predictive routing, time to arrival estimation, and adverse event prediction for B2B shipments. The funds will be used to support the rollout of its technology and further develop its AI technology. 

Ampersand Raises $3.5M Led by Ecosystem Integrity Fund. Ampersand is a Rwandan startup that creates eMotor bikes for Africa. The company has a waitlist of more than 7K drivers. The funds will be used to expand its  battery-swap station network in its home country and start to expand beyond its borders. 

Torch Raises $3.5M Led by Maersk Growth. Torch is the first short-haul freight network. The startup’s freight haul technology is tailored for the specific needs of shipments under 550 miles. This investment round will be used to expand Torch’s network, analytical capabilities, and customer service efforts.  

Chain.io Raises $5M Led by Grand Ventures and Mercury. Chain.io is a cloud-based supply chain integration platform that creates data visibility across all systems. The fundraise comes after the startup has doubled in size over the past year. The new capital will be deployed to expand the platform and the team. 

Pickle Raises $5.75M Led by Hyperplane and Third Kind. Pickle is a robotics startup that creates robots that can pick 1.6K units/hour from the back of a trailer. Their robots will be ready to ship in 2022. The funds will be used to further develop their product. 

Saltbox Raises $10.6M Led by Playground Global. Saltbox is a startup that offers eCommerce retailers a place to store items they are selling and dealing with the logistics of operating. Their unique co-warehousing model that provides space for small retailers to operate as well as store and ship goods, all under one roof. The fresh funds will be used to expand into new markets. 

Oxbotica Raises $13.8M Led by Ocado. Oxbotica is a UK-based startup that develops autonomous driving systems. Ocado is a UK online grocer and delivery service and sees this investment as a strategic investment in its future. Oxbotica will use these funds to further develop their AV technology. 

Battery Resources Raises $20M Led by Orbia Ventures. Battery Resources is a vertically integrated lithium-ion battery recycling company. The startup offers a new approach to battery manufacturing by starting with used lithium-ion batteries and ending with the production of finished cathode active materials. The funds will be used for the development of a commercial-scale processing facility.  

Canvas Raises $24M Led by Menlo Ventures. Canvas is a construction robotics startup. The startup’s technology improves the timeliness, safety, and quality of drywall construction. The Series B capital will be used to accelerate the development of its product. 

Xwing Raises $40M Led by Blackhorn Ventures. Xwing is a startup that makes autonomous commercial cargo aircraft. The startup recently completed a fully autonomous gate-to-gate demonstration. The fresh capital will be used to triple its engineering team and further expand its business. 

Kako Raises $44M from Google. Kako is a leading Korean taxi-hailing company. The deal will let the company cooperate in the development of cloud-based AI technology that uses Google’s cloud services and Kako’s mobility platform. 

Seeq Raise $50M Led by Insight Partners. Seeq is a company that creates manufacturing and industrial IoT advanced analytics software. The software helps enterprises improve production and business outcomes. The Series C round will be used to scale their organization. 

Clearcover Raises $200M Led by Eldridge. Clearcover is a Chicago-based digital car insurance startup.  The company has seen increased growth during the pandemic due to the reduced importance of physical networks of insurance agents. This funding round puts the Clearcover’s valuation at over $1B and will be used to grow the team and invest in new products.  

Polestar Raises $550M Led by Chongqing Chengxing. Polestar is Volvo’s standalone electric performance brand aimed at producing fun-to-drive EVs. The new capital will diversify the automakers funding structure and accelerate product development for years to come.  

Cruise Raises $750M from Walmart. Cruise, an AV company, has raised $750M from Walmart as a part of a $2.75B round announced in January which was led by Microsoft. This investment is a part of Walmart’s commitment to AVs and the benefit they can have for their business and their customers. 

TuSimple Raises $1B in its IPO. TuSimple is a company that makes AVs through its proprietary AI platform. The proceeds will be used to invest in their business and to hire at least 400 more employees. 

Blue Yonder Weighs IPO.  Blue Yonder, which by Gartner’s estimate is the third largest provider of supply chain-management software, has confidentially filed IPO paperwork with the SEC. Details such as the number of shares and the price range for the IPO haven’t been determined. 

SPAC Radar 📡

Grab in $36.9B Deal with Altimeter Growth. Grab is a Southeast Asian ride-hailing and food delivery startup. As part of the deal, Grab will receive about $4.5B in cash, which includes $4B in a private investment in a public equity arrangement, managed by BlackRock, Fidelity, T. Rowe Price, Morgan Stanley’s Counterpoint Global fund and Singapore’s sovereign wealth fund Temasek. The company plans to trade on the NASDAQ under the symbol GRAB once the deal is complete. This is the largest ever deal involving a SPAC. 

Company Building 🛠️

How People Get Rich Now. “It's easier now to start and grow a company than it has ever been. That means more people start them, that those who do get better terms from investors, and that the resulting companies become more valuable. Once you understand how these mechanisms work, and that startups were suppressed for most of the 20th century, you don't have to resort to some vague right turn the country took under Reagan to explain why America's Gini coefficient is increasing. Of course the Gini coefficient is increasing. With more people starting more valuable companies, how could it not be?”

How to Get Insanely Well Connected. It might feel weird to read about how to network and build relationships but there’s no better practical tutorial on this. It ultimately comes down to being authentic, thinking in terms of years or decades, and doing the hard work. Note- it has nothing to do with sharing hot takes or promoting snark on social media.

Curated List of CTO and Engineering Management Resources. It’s self explanatory 🤖

Who's Hiring? 👩‍💻

Marketing Lead at Milk Moovement in St. John’s, Halifax (remote ok).

Account Executive at Plus One Robotics in San Antonio, TX.

Senior Software Engineer at Token Transit in San Francisco, CA (remote ok).

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.