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 💭

👋Goodbye July and hello August. Before we know it, the kids will start heading back to school and the house will be quieter during the work day once more.

If haven’t listened to our podcast in a while we recommend catching up! In our latest episode, Santosh interviewed Tim Henry from Haul on the topic of Providing Flexible Assignments to Truckless Drivers.

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Supply Chain 📦

Walmart Cuts Profit Outlook As It Lowers Prices To Move Goods. A surprising release of their current profit outlook proves unfavorable for the state of the US economy, as Walmart reported lower sales and higher inventory levels. Walmart blamed rising prices for both fuel and food for the lack of consumer buying, which could lead to problems for an economy that is heavily reliant upon high household spending through rising inflation. However, it appears that this may be temporary, as most retailers aren’t struggling to grow their top lines, but rather are unable to reach the profitability of their COVID figures. For more information, consider reading Walmart Tumbles Most In S&P 500 As Forecast Warning Sows Gloom.

US Bank: Truck Freight Spending Increases Across All Regions In Second Quarter. The US Bank Freight Payment Index reported this week that spending has increased substantially during Q2 2022, reaching 19.7% y/y. Spending was up from the Q1 3.3%, with the volume of truck freight shipments up 2.3%. Truck freight spending was up the most in the Southwest region at 4.8% while the West reported the least growth at 2.1%. In fact, the Southwest region had its 5th consecutive quarterly gain in spending, ending up at 29.7% y/y. For more, consider reading FTR Trucking Conditions Index Falls Back Into Negative Territory and DSV Raises Outlook As Global Supply Snarls Keep Freight Rates High.

Coal Far From Dead: Global Trade Thrives, War Reroutes Shipping. Despite announcing it would cease funding overseas coal projects in 2019, China has since increased its coal usage, with overall production rising 10% y/y in the first half of 2022. The combination of the looming EU ban on Russian imports and rising demand for coal in India and China (which imported 195.1 M and 284.2 M tons of coal in the first half of 2022 respectively). Furthermore, China plans to re-enter the market for Australian coal, with reports that they may end the long ban on Australian thermal and met coal. However, China is not alone in increasing its coal production as India, Indonesia, Germany, South Korea, Japan, and much of Eurasia have either hiked production or delayed closures of coal-fired power plants. For more information, consider reading Climate Change Setback: Coal Rebounds To A Record and Global Coal Demand To Match Record High This Year, IEA Says.

UPS Earnings Rise As It Ships Fewer Amazon Packages. Although its largest customer by revenue, Amazon, has faced decreasing demand, UPS reports higher earnings this past quarter with revenue rising 5.7% to $24.8B. Average daily shipping volume fell 9.2% internationally and 4% in the US from last year; however, by focusing on smaller, more profitable packages rather than pursuing volume growth, UPS has been able to pull off this stunt. Amazon will make up less than 11% of UPS’s total revenue in 2022, down from 13% in 2020, forcing UPS to transition its focus on gaining more profitable, smaller to medium-sized shippers. This has resulted in profits rising 6.5% to $2.85B, allowing UPS to raise its share-repurchase target for the year to $3B from $2B. To read more on how UPS is performing, consider reading UPS Puts Limit On Amazon Deliveries Amid Focus On Bigger Returns and Shares Of UPS Fall After Company Says Higher Rates Offset Lower-Than-Expected Volumes In Second Quarter.

🌟Germany’s Falling River Rhine Adds to Shipping and Economic Woes. One of Europe’s major waterways is becoming dangerously shallow for cargo barges to pass through, with only 14.5in preventing continental disruption of the supply chain caused by massive heat waves. In fact, the bottleneck of the Rhine, known as the Kaub, is sitting at 27in (69 cm) which is a seasonal low since 2007. Spanning from Switzerland to the North Sea, millions of tons of commodities are in danger of being held up; particularly, mineral, sand/gravel, chemical, and food products will be heavily impacted. With the Rhine being a crucial player in many major European markets, such as Germany, France, and the Netherlands, the challenges ahead for global supply chains only continue to get more complicated. To understand how the drying up of the Rhine could further impact supply chains, consider reading Germany’s Falling River Rhine Adds To Shipping And Economic Woes and A Critical Shipping Lane In Europe’s Economic Heart Is Drying Up In The Searing Heat.

We Might Be Having The Completely Wrong Conversation About Truck Parking. With trucker work conditions coming under strong scrutiny, people are beginning to focus on trucker safety when it comes to parking. Nearly half of all commercial truck stops in the US operate at more than 100% capacity on weeknights, forcing truckers to park on federal land without permission. However, more and more federal truck parking areas are being found with dirt piles and signs stating “NO VEHICLES, NO TRESPASSING” to dissuade truckers. This is becoming a financial and safety risk for truckers who spend on average 56 minutes per day looking for parking. This translates to $4.6K in lost wages yearly. For more, consider reading Researchers To Study Truck Parking In Iowa, Wisconsin and Committee Advances Legislation Improving Truck Parking.

LA Is Out of Warehouse Space. According to a news report, the Greater Los Angeles industrial market is now running out of space to lease. The demand for more warehouses and storage facilities is so far ahead of the existing supply that there are now waiting lists of tenants before any space even has a chance to hit the market. This resulted in the 8th consecutive quarter of rising rents, with an all-time high of $1.35 ft² per month in Q2 of 2022. This has resulted in a bottleneck in the LA area for eComm, packagers, and retailers vying for more space as construction costs continue to rise at a rate of nearly 3% per month. Many industry experts predict that markets will thus have to face a recalibration period where demand settles down following the summer. For more on how LA is being impacted currently, consider reading US’s Supply Chain Recovery Leaves LA Port Community In Its Dust.

Mobility 🚗

🌟New Senate Deal Signals EV Tax Credit Expansion. Last week’s newly proposed Inflation Reduction Act of 2022, which is a major breakthrough between Senate Democrats and Democratic Senator Joe Manchin, may mean an extension of the EV tax credits adamantly sought by the likes of Tesla, Toyota, and GM. The bill, as it stands today, would allow automakers to continue offering the $7.5K tax credit to potential buyers, a move that EV supporters argue is crucial to speed up mass adoption. Many EV automakers have already reached this year’s 200K vehicle per manufacturer sales cap, with GM being the latest. In related news, Tesla Has Announced It’s Significantly Increasing Its Investment Plan. More locally, in Chattanooga, Volkswagen Is Set To Begin Production Of Its ID.4.

GM Rolls Out Its EV Conversion Kit. Following fellow American automaker Ford, GM has announced plans to release an EV conversion product, which will allow consumers to convert their old internal combustion engines to electric vehicles with ease. While the timing of release and price point has yet to be announced, the technology is proposed to be a comprehensive approach that can appeal to most non-technical consumers. Speaking with Detroit Free Press, Scott Bell, president of Chevrolet, mentioned that “The technology will soon be available through Chevrolet Performance. This specific offering is part of GM's larger strategy to provide EV component sets to a variety of different industries and applications outside of GM's product portfolio.” For further reading on GM’s future EV growth strategy, check out this piece on its Effort to Educate the Public. In other auto-maker news, Rivian Has Begun Its Layoff Of 6% Of Its Workforce.

Your Car Data Is Being Collected by Companies You’ve Never Heard Of. Like any other piece of modern technology, your vehicle produces and collects data based on your usage. A recent survey by the Automotive Industries Association of Canada found that only 28% of people have a clear understanding of the types of data their vehicle produces. This week, The Markup published a list of 37 companies that are vehicle data collectors, many of which are from the insurance or navigation industries. For further reading, check out this piece on how AI Is Being Trained For Accurate, Real-Time Responses. In other data-related news, The Average Cost Of A New Vehicle Has Ballooned By $13K.

Tesla Is Rewriting Its Software to Subvert the EV Chip Shortage. During the Q2 earnings call last week, Elon Musk announced to shareholders that Tesla is re-engineering its software to allow for different kinds of and fewer chips, in an attempt to lessen the blow of the global chip shortage. Semiconductor shortages have plagued the EV industry for the past few years, and Tesla is no exception. In 2021, semiconductor shortfalls are estimated to have cost automakers approximately $210M in lost revenue, and 7.7M in lost vehicle production. However, not all EV makers have been affected in the same proportion, with French Automaker Valeo Beating Profit Estimates This Week, And Noting That The Shortage Is Improving. For further reading on EV production capacity solutions, check out this piece on The Potential For Battery Swapping.

New York Considers Bike Lane Cameras. Any cyclist will tell you that the most frustrating part of biking in urban areas is cars taking up bike lane space. In addition to the nuisance, bike lane accidents can prove extremely dangerous, and sometimes fatal. The groundbreaking legislation would give the city’s transportation department the green light to install up to 50 bike lane cameras, with violators mailed $50 fines, a much-welcomed policy for anyone trying to navigate bike lanes in the city. For related bicycle news, read this piece on an eBike That Claims To Be Able To Summit Mt. Everest On A Single Charge. And to many eBike supporters’ dismay, The New Senate Bill Does Not Include A Tax-Credit For Purchases.

Jeep Is Pulling Out Of China, Citing Government Meddling. Automaker Stellantis, the name behind Jeep, announced last week that it’s adopting an asset-light strategy in China, shuttering its production factories over alleged government meddling and unfavorable policy. “We have been seeing over the last few years more and more political interference in the world of business in China,” said Stellantis CEO Carlos Tavares. “We don’t want to be a victim of cross-sanctions as has been the case for other companies in other regions of the world recently.” Many automakers around the world are taking a closer look at foreign production, in lieu of changing geopolitical dynamics as a result of the Russian-Ukrainian War. Despite this, New VW CEO Thinks China Is Crucial To The Company’s Global Ambitions. For further information, check out this piece on how China Became The Center Of The Global Auto Chip Shortage.

BP And Iberdrola Take Action On The EV Charging Front. Last week, Iberdrola and BP announced a large strategic joint venture, earmarking €1B in funding for the development of EV chargers, which equates to 11K fast charging points and 600ktpa for hydrogen capacity production across Europe. Currently, BP offers access to a network of over 10K charge points in Europe, mostly in the UK and Germany, while Iberdrola operates 2.5K charging points in Spain & Portugal, claiming that users can access over 100K recharging points throughout Europe via its app. If you’re still not quite up to speed on how EV charging works, check out this primer on Level 1, 2, and DC Fast Charging. In related news, Siemens Has Announced A “Game-Changing” Home EV Charger.

Fundraises and M&A 💸

Dart Raises $1.3M Pre-Seed. Dart is a Manila-based online supermarket that is delivering groceries to customers in the Philippines within 15 minutes. The round was led by Robinsons Retail Holdings Inc. and existing investor Kaya Founders. The funding will be used for the expansion into adjacent Philippine cities.

Frolick Raises $1.8M Seed. Frolick is a meal-delivery app featuring hot, cook-prepared meals. The round was led by GetGroup and a number of angels. The funds will be used to expand service into D.C. and beyond.

Carpool Logistics Raises $2M. The startup, which is based in Atlanta, is a logistics tech platform for transport vehicles that “allows a number of shoppers to share space on one truck, which implies a decrease in value and fewer emissions.” The round was led by Atlanta Ventures. The capital raised will go towards growing operations through dealerships and auto auctions.

Packworks Raises $2M In Undisclosed Funding. Packworks developed a mobile enterprise resource planning (ERP) platform that enables small neighborhood businesses to digitize operations. The round was led by logistics group Fast Group and CVC Capital Partners, with participation from ADB Ventures, Arise, Techstars, and IdeaSpace Foundation. A large share of the funds will go towards the development of its mobile app.

KedaiSayur Raises An Undisclosed Amount In Series A Funding. KedaiSayur is an agritech startup that’s building a farm-to-table ecosystem in Indonesia. The round was led by Kejora-SBI Orbit and included participation from Triputra Group. The funding will be used to accelerate its growth.

Drover Raises $5.4M Series A Funding. Drover is an AI company that helps light EV companies improve efficiency and profitability. The round was led by Vektor Partners. The startup will use the funds to continue building on the next-generation technology in micromobility, business development, and hiring engineers.

Geomiq Raises $8.5M In Series A Funding. Geomiq is a London-based matching platform for manufacturers and suppliers. The round was led by AXA Ventures which saw participation from TechNexus Venture Collaborative and existing investors Samaipata and Fuel Ventures. The capital raised will be used to digitize manufacturing supply chains.

Cartona Raises $12M In Series A Financing. The Egyptian B2B eComm platform is using the new funds to scale the product into new verticals as it continues its mission of digitizing the traditional trade market, including mom-and-pop stores, FMCG producers, wholesalers, and distributors. “Silicon Badia led the round, which also welcomed participation from the SANAD Fund for MSME, an impact investment fund for the Middle East and North Africa, Arab Bank Accelerator, and Sunny Side Ventures.”

Altruistiq Raises $15M In Seed Funding. Yes, you read that right. The company is now one of the best-funded EU climate software startups to date. The round was led by Molten and included participation from Norrsken and angel investors including Greg Jackson, Mudassir Sheikha and Siraj Khaliq, and Sir Ian Cheshire. The funds are going towards product development.

Topl Raises $15M In Series A Funding. Topl is building a blockchain ecosystem specifically focused on catering to different commodities. The round was led by Mercury, Republic Asia, and Cryptology Asset Group. The fresh capital will be used for hiring and technology development.

Nash Raises $20M In Series A Funding. Nash is a platform that allows businesses to organize and manage their delivery processes. The round was led by Andreessen Horowitz, with the participation of Y Combinator, Rackhouse Venture Capital, 640 Oxford Ventures, and other industry leaders. A bulk of the funds will be used for hiring.

Arable Raises $40M In Series C Funding. The San Francisco-based startup, which specializes in crop intelligence, is on a mission to transform agriculture’s impact on the planet for the better. The round was led by Galvanize Climate Solutions, with participation from Qualcomm Ventures, Prelude Ventures, S2G Ventures, and Ajax Strategies to name a few. “The new funding will support climate resilience initiatives and bolster product offerings trusted by hundreds of global food and agricultural organizations worldwide.”

Onto Raises $60M In Series C Funding. The UK-based startup enables people to sign up for an EV on a monthly contract with a cost that includes public charging, insurance, and other perks that are meant to entice EV adoption. The round was led by Legal & General and saw participation from existing investors including Alfvén & Didrikson, Accelerated Digital Ventures, Cerebrum Tech Limited, and the family office of Jim O’Neill. The funds will go towards product expansion into different geographies in the region, starting with Germany in 2023.

Enko Raises $70M Series C Funding. Enko is a crop health company that built a digital platform that “massively increases the scale and discovery rate for new solutions, screening out off-target organisms from the get-go.” Global agrochemical company Nufarm led the round. The fresh funds will go towards advancing the product pipeline and quicker expansion.

Spotnana Raises $75M In Series B Funding. Spotnana is a business travel platform that targets corporations, travel management firms, and other technology companies with a cloud-based toolset for booking and managing travel. The round was led by Durable Capital Partners LP, with participation from Madrona Venture Group, Iconiq Growth, Mubadala Capital, and Blank Ventures. The new capital will be used to accelerate the development of the company's Travel-as-a-Service Platform and expand the team.

JetBlue To Acquire Spirit For $3.8B. JetBlue swooped in and stole the show from Frontier Airlines, which had reached an agreement with the discount airline earlier this year before calling it off. JetBlue is still awaiting regulatory approval which won’t take place until the end of 2023 at the earliest. Both parties expect the deal to close by the second half of 2024.

SPAC Radar📡

Athena Consumer Acquisition Corp. And Next.e.GO Agree Merger, Go Public. Next.e.GO is a producer of urban electric vehicles which utilizes disruptive approaches to vehicle design, manufacturing, and services to produce urban vehicles with a focus on affordability, convenience, practicality, and smart services. The startup also deploys a unique MicroFactory strategy that allows production to take place closer to consumer demand—the second MicroFactory is expected to begin operations by the end of this year. “Pro forma implied enterprise value of the combined company of $913M.”

Who's Hiring? 👩‍💻

Account Manager, Operations at sennder in Paris, France.

Business Development Representative at Forwardize in Berlin, Germany.

National Sales Representative at LogRock in Chicago, IL (remote ok).

💥 Have you seen any interesting startups recently? Introduce us.❤️ We would love your support. Please forward this to friends and share it 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.