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 💭

Catch up on the Future of Supply Chain podcast as we get ready to release new episodes later this month!

We Are Dynamo,

Santosh, Jon, Barry, Ted, Katie, Clay, Skyler, and Lukas

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Supply Chain 📦

Shipping Act Rewrite Defers to FMC to Define ‘Unreasonable’ Export Rejections. The purpose behind the bill, introduced last Tuesday, is to strengthen US enforcement of container lines’ common carriage responsibilities regarding exports, but it’s up to maritime regulators to decide when it’s reasonable to deny new bookings. 2021 has seen an influx of import volumes so carriers have been selective on what they carry in an effort to free capacity for imports. Consequently, carriers are choosing higher-paying import cargoes, leaving exporters scrambling to get exports booked. The World Shipping Council (WSC) believes the bill unfairly blames carrier lines for port congestion and ignores that carriers and other transportation providers are doing all they can to ease it. Check out Cold Chain Summit: Containerized Ocean Shipping Tech Undergoing Major Evolution and US Port Chief Calls for ‘Amazon Mentality’ to Ease Congestion – Working 24/7.

Driver Shortage Has Trucking Companies Looking Abroad. Business is booming for eCommerce, but what good is high demand if trucking agencies can’t source the drivers needed to fulfill delivery demand? This driver shortage is arguably the worst shortage we’ve lived through according to Jose Gomez-Urquiza, CEO of Visa Solutions, an immigration agency focused on the transportation sector. Demand for Visa Solutions has nearly doubled since the pandemic, but immigration policies create quite a hurdle to overcome. To provide some perspective of the severity of the shortage, the US was short 60,000 drivers in 2019, according to American Trucking Associations, and that number is expected to reach 100,000 drivers by 2023. For more on the global shortage, consider reading, Army is On Standby to Restock Britain’s Shelves Amid Truck Driver Shortage and Truck Driver Shortage ‘Is About As Bad As I’ve Ever Seen’: US Xpress CEO.

Amazon Opens It’s $1.5B Air Hub in Kentucky in Latest Push to Speed Deliveries. The terminal at the Cincinnati/Northern Kentucky International Airport was strategically chosen to serve as the major artery for the Amazon Air network. The hub has been under construction for more than four years and now allows Amazon to improve its same-day delivery capabilities. At peak performance, the facility can coordinate 200 flights per day and has a capacity of 100 planes. Amazon currently has 75 aircraft but is expected to expand the fleet to a total of 85 planes during Q4 of 2022. On a more sobering front, Amazon Loses Bid to Halt New York’s Warehouse COVID Probe.

IPCC: Sixth Assessment Report. The Sixth Assessment Report seeks to find the physical science basis of climate change. Working Group 1 (WGI), the report contributor, has undoubtedly attributed human influence to climate change, specifically the warming of the atmosphere, ocean, and land. WGI also predicted that the global surface temperature will continue to increase until at least the mid-century and that many changes in the climate system become larger in direct relation to increasing global warming. How can we address these global warming issues? In short, supply chains should aim to meet net-zero CO₂ emissions. Be sure to check out the rest of the report for more information regarding climate change attributions and solutions. Also, How Much Carbon Comes From a Liter of Coke? Companies Grapple With Climate Change Math.

Global Supply Chains Are Being Battered by Fresh COVID Surges. Earlier this year the WTO forecast Asia to increase their global goods trade by 8%. Now the delta variant has led to the closure of the Meishan terminal at Zhoushan port. A closure similar to this at the Yantian port in which the closure lasted 1 month. Vietnam is experiencing surges of 16,000 cases per day that has forced the government to allow factory workers to sleep at facilities to reduce transmission. Although, this approach still has not prevented factory closures, as Vietnam only has 1.3% of the population fully vaccinated. Combined with record freight prices, COVID-19 will continue to be a disruption for global trade. In other supply chain disruption news, COVID Surge in Vietnam Hits Global Supply Chains and Record-Breaking Supply Chain Disruption and Supply Shortages.

Lesson Learned: Pitney Bowes to Focus More on Lightweight Parcels as Capacity Grows. Logistic companies are handling more packages than ever before which can be attributed to high consumer demand in wake of the pandemic. Parcel carriers are prioritizing higher-yielding volumes since demand is not an issue. Marc Lautenbach, President and CEO of Pitney Bowes, the largest workshare partner for the Postal Service, said on the company’s Q2 earnings call that their focus has shifted to lightweight parcels after handling more volume than expected last year. Maintaining the highest commitment to service levels in the most economical and profitable ways is the key strategy at play for Pitney Bowes. In other parcel news, USPS Rolls Out Its Proposed 2021 Peak Temporary Rate Adjustments and Startup Couriers Snatch Toehold in Biggest Shake-Up of FedEx Era.

Edgy Air Cargo Market Could See 'A Crazy' Peak Season Rates Boom. Air rates are expected to be on the up as the holiday season quickly approaches. Seasonal patterns suggest a typical rise in prices as demand for cargo capacity increases but a fall in capacity due to canceled flights and already large volumes of unmoved ocean freight have some freight forwarders preparing for the potential of a “crazy” season. In recent air cargo cancellation news, Cargo Airlines Cancel Hundreds of China Flights Amid COVID Outbreak.

Mobility 🚗

Tesla Claims That its Battery Packs Lose Only About 10% of Their Energy Capacity After 200,000 Miles. This is an interesting claim because coming directly from the manufacturer, they have the data to deliver statistically relevant information. Additionally, the incentive for Tesla not to overstate this number is a given, as they would want to avoid over claims that could result in lawsuits. This should help win over some EV skeptics regarding the longevity and ultimately value retention of EVs. It will be interesting to see what other car manufacturers claim as they start reaching those mileage numbers on their vehicles, as this value is a proxy for battery quality. Related, Tesla Model 3 with Salvaged Titles are Regaining Access to the Supercharger Network, and New Tesla Battery Recycling Process Reportedly Produces No Waste.

Elon Musk puts Renesas and Bosch on Blast for Tesla’s ‘Extreme Supply Chain Limitations’. The chip shortage is causing all kinds of havoc and nightmares for car manufacturers, especially with the irregularity of chip deliveries. Both Bosch and Renesas are struggling with shortages and increasing their production outputs. It looks like not even Tesla has been spared problems relating to “‘standard’ automotive chips” in the words of Elon Musk. The interesting subtext of this tweet by Elon Musk is the reliance and stranglehold that Bosch and other large suppliers have even on the most innovative of car companies. In related news, Mustang Mach-E Production Delayed Due to Chip Shortage, GM has 10,000 Full-Sized SUVs Parked in Texas Awaiting Chips, and VW Delivers Certain Small Cars Without Infotainment Systems as a Result of the Chip Shortage.

Daimler & Bosch Give Up On Their Robotaxi Dreams. This announcement by Daimler and Bosch gives an interesting insight into the challenges and dynamics of developing self-driving technology platforms. Bosch has long been a technology provider for many car manufacturers, and the parting of ways with Daimler hints at the importance for the car manufacturers to own this core technology themselves as a product differentiator. It will be worth following future announcements by Daimler in regards to their future AV strategy. In related news, Mobileye Begins Testing Autonomous Cars in New York, and Driverless Cars Are Proving to Be Job Creators, At Least So Far.

In the New Bipartisan Infrastructure, Bill Lawmakers Set Aside the Largest Share of the Money, $110B, for Roads and Bridges. The passing of the bill was one of the largest in US history. In addition to investments in roads and bridges, $66B is set for passenger and freight rail, $39B for public transit, ​​$15B for electric vehicles, and $11B for road safety. It will be the largest investment in bridges and roads since the creation of the interstate system in 1956. Most interesting will be the economic implications down the road. The interstate system returned $6 for every $1 invested, a hint that this current bill could spur large-scale economic growth. Also, Bill Gates Pledges $1.5B for Sustainability Efforts in Infrastructure Bill.

BMW Has Fallen Behind in the Electric Vehicle Race. BMW was one of the leaders in early EVs with the likes of the BMW i3 and i8 but has since failed to grow its EV portfolio in comparison to its competitors. A clear indicator of the disappointment has been the stock price of BMW which has taken a hit despite good profit numbers, and the slow growth of their EV offering (no new full EVs brought to market in 2020). This should come as a warning for all legacy automakers, that an EV future is the path that we are headed down, there is no way around it. If they don’t adapt quickly, they might just join Nokia as a fallen corporate titan. In comparison, Audi Roadmap Delivers a Long Line of New Vehicles in Next Four Years and Mercedes-Benz Just Launched Their EQS Electric Sedan.

Lyft And Uber Prices Are High, Wait Times Are Long, and Drivers Are Scarce. The pandemic has taken its toll on ride-sharing companies with Lyft and Uber still struggling to find drivers, despite offering incentives. The impact is felt across the board, from cities that have seen fares rise 79% from pre-pandemic levels to longer wait times for a pickup. An alarming result of this shortage is an Increasing Number of Drunk Driving Crashes. This is becoming an increasing problem, as life returns to normal in the wake of openings. The data is there that Ride Sharing Contributes to a Reduction in Drunk Driving Deaths, making the driver shortage not only a convenience but also a safety problem.

Fundraises and M&A 💸

Ripe-Guard Raises $930K Led by Terralab Ventures. The Israeli startup is developing a platform for fruit and vegetable shelf life predictions. Ripe-Guard hopes to use its platform to better communicate spoilage risk throughout the value chain. The seed round will provide the startup resources to complete their minimum viable product.

Remato Raises $1.7M Led by Passion Capital. This startup is addressing the need for digitization for small to medium-sized construction companies. Their mobile-first platform will allow contractors to manage resources, materials, and budgets. Remato has shared that they have experienced 10-15% MoM growth and have customers across northern Europe.

Orchata Raises $4M Led by Y Combinator, FJ Labs, Venture Labs, and Investo. The Monterrey, MX-based startup provides quick on-demand delivery services for food and goods. Orchata hopes to offer their own brand of food and goods one day but will focus on expanding into three new cities. From there Orchata hopes to expand into Colombia, Brazil, Peru and Chile.

Car IQ Raised $15M Led by Forté Ventures. Located in Oakland California, Car IQ is developing a contactless payment network for fleets of vehicles. This hardwareless solution will enable connected fleet vehicles to pay for merchants’ fees, fueling, tolling, and parking. The newly acquired capital will be used to expand operations and scale their patent-pending technology.

Parcel Perform Raises $20M Led by Cambridge Capital. This startup is connecting merchants with eCommerce forwarders while enabling transparent tracking. Based out of Singapore, their SaaS platform will provide data logistics, but also enable higher customer touchpoints to increase brand loyalty. The funds will provide Parcel Perform the ability to expand globally with plans to open their first American office and increase their headcount.

HopSkipDrive Raises $25M Led by Energy Impact Partners. Only a year ago, HopSkipDrive had to let go of the majority of their staff as school lockdowns due to COVID-19. Now back in full force, this startup is providing ride-sharing services to school children as an alternative to the traditional bus systems. During the lockdown, HopSkipDrive signed 150 new contracts and will deploy the newly raised capital to invest in electrification which only makes up 19% of their current driver network.

Agora Raises $33M Led by Tiger Global. Their construction platform allows contractors to order, track, and communicate with all involved in the procurement process. The San Francisco-based startup is already processing $140M in annual materials and has experienced 760% YoY revenue growth. The Series B funding will be used to expand to 30 new states, increase the headcount, and enter new customer verticals.

Doxel Raises $40M Led by Insight & a16z. Based out of Redwood City California, Doxel is developing a forward-thinking computer vision for construction sites that will help track and monitor projects. The platform has helped Doxel customers complete projects 11% below budget and increase productivity by 38%. The series B fundraise comes at a time where Doxel is known to be cash-flow neutral and will deploy the capital to double the size of the team through next year.

Voi Raises $45M Led by The Raine Group. The micro mobility operator has scooters in 70 different European cities and is working on developing a next-generation scooter. It is speculated that it will have built-in computer vision that will help keep riders safe. As well, Voi differentiates itself from other operators by providing scooter racks in areas that they operate that keep the sidewalk clear for pedestrians. Voi will use both of these features as they negotiate with partnering cities and expand into new geographies.

Innovusion Raises $66M led by Guotai Junan International Holding LTD. The startup is developing detection systems for autonomous vehicles using LiDAR technology. Innovusion operates out of both Silicon Valley and Suzhou, China, and is preparing to scale sales to global automakers. The newly raised capital will be used to expedite growth and offset potential chip shortage-related risk.

ChargePoint Acquires ViriCiti for €75M. This will be the second acquisition for Chargepoint in less than a month as they acquired has.to.be for €250M in July. Chargepoint, which supports fleet operators in electrification, will gain access to ViriCiti’s 150+ fleet operators, 3,500 connected vehicles, and 2,500 network ports. Chargepoint CEO, Pasquale Romano shares, “Adding ViriCiti’s vehicle management capabilities to our fleet portfolio allows ChargePoint to deliver more functionality to eBus and commercial fleet operators while remaining open to integration with existing telematics systems.”

SPAC Radar 📡

EO Charging to Enter $675M Spac Deal with First Reserve Sustainable Growth Corp. U.K.-based, EO Charging provides hardware, software, and installation services for electric fleet charging stations. The most notable customer includes Amazon, which EO Charging will provide charging infrastructure across Europe. The financing structure will provide this startup with $150M in cash that will further their European expansion.

Company Building 🛠️

Hiring Your First Designer. Some recommendations to hire designer #1 into a startup environment.

When it Comes to These Company Building Blocks, Borrow From Others. “It’s a mistake to be too explicit about the culture and values upfront in the earliest days of a startup. You don’t know yet who’s going to be attracted to your idea or you as a founder.”

Hiring and Structuring a Growth Team. There’s no silver bullet to growth and agree that PLG efforts require a team to own and drive outcomes. It won’t just “happen” as some commentaries could imply.

Who's Hiring? 👩‍💻

Product Manager at Vector AI in London, UK (remote ok).

VP Engineering at Milk Moovement in St. John’s, Halifax (remote ok).

Senior Developer Evangelist at Tangram Vision in San Francisco, CA (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.