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 💭

This is our last Dispatch of the year and what a year it’s been! Santosh was recently on a webinar hosted by Freightos to discuss the state of VC in supply chain technology. As Loadstar summarized it, 2020 Is The Year of Logistics VC Investments.

We wish everyone a Happy Holiday and New Year. It’s been a long, stressful year and we hope you can get some time off with friends and family. Here’s to 2021!

We Are Dynamo,

Santosh, Ted, Barry, Jon, and William

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

Supply Chain 📦

Gatik Makes History With Walmart Partnership. Beginning in 2021, Gatik’s multi-temperature autonomous box trucks will operate an autonomous delivery route in Arkansas. The removal of a safety driver marks a new milestone signifying the first ever driverless operation carried out in middle mile supply chain operations. Gatik will also deploy its autonomous box trucks in Louisiana on a 20-mile route between New Orleans and Metairie enabling customers who live further away from its New Orleans store to benefit from the convenience of Walmart’s pickup service. #proudInvestor #weAreDynamo

Airlines Ramp Up Operations to Distribute Vaccine. Following a brutal year, the aviation industry moves to repurpose planes and boost cold storage infrastructure as the mass distribution commences. In parallel with airlines, airports are boosting security depots that are housing the vaccines. Although transport volumes will be immense, the distribution will likely provide little to no financial cushion to the battered industry as vaccines may account for around 1% of total air cargo shipments industry wide in 2021.As vaccinations begin, Some Doses Are Labeled “Too Cold” and Returnedand Ultra-Cold Freezer Sourcing Jumps 522% y/y. 

Costco Expects Container Shortages to Persist Into New Year. Container shortages at US West Coast ports are delaying Costco inventory replenishment by 2-4 days with no near term relief on the horizon. To counter some of the logjams, Costco is encouraging customers to shop early this holiday season. The crippling bottlenecks have forced FMC to investigate the root causes of port congestion as disruptions reverberate throughout retail supply chains.Related, How Carriers Can Avoid Containers Shortages Going Into February.

🌟The Future of FedEx - Automated Sort Centers and Surcharges. Looking ahead to the medium term, FedEx continues the buildout of last-mile sort centers to support overnight service within FedEx Ground and act as a "relief valve for spillover sortation at peak.” The carrier labels the implementation of surcharges critical to its revenue quality strategy as margin improvement will also be a key focus point in FedEx’s operating model. Expect strategic technology investments and new pricing strategy to be essential aspects of the company's growth strategy going forward. BTW- new rate hikes and burgeoning eComm volumes help FedEx Double Quarterly Profit in Latest Earnings But Gets No Love From Wall Street.

Air Cargo is Slowly Becoming Cargo Neutral. DHL inked a deal with Shell that will support the carrier's carbon neutrality ambitions by supplying sustainable aviation fuel (SAF) out of Schiphol. Despite being 2-3X more expensive than traditional jet fuel, SAF can reduce greenhouse gas emissions by up to 80%. “Flying on SAF is an important step in our decarbonisation journey, both for our operations and reducing the emissions footprint of transported goods for our customers,” said Alberto Nobis, CEO of DHL Express Europe.Also in the skies, HSBC Sees Vaccine Supporting Higher Air Rates.

📊The State of Supply Chain Visibility. There’s no secret that pandemic impacts have contributed to a plethora of business disruptions with supply chain visibility keeping many executives up at night. A recent survey across 200 US food and pharmaceutical supply chain decision-makers reveals 92% of total respondents said they couldn’t fully trust the data coming in from tracking products within their supply chain while 99% of pharmaceutical respondents claimed to be using some sort of manual processes to achieve supply chain visibility. Growing pressure on organizations mounts as the need to invest in greater visibility tools becomes evident. 

Challenges in Mission-Critical Prototype Manufacturing. An array of complexities are shaping the “new normal” within the process hardware and prototyping industry. Manufacturers are turning to a software-first contract manufacturing strategy in what is widely known as an old fashioned, opaque industry requiring a tech forward pivot to drive efficiencies around cost, resources, and output volumes.

Mobility 🚗

EV Battery Pack Prices Fell 13% in 2020. Average battery-pack prices have fallen 89% from highs of $1.1K/kWh over the last decade and now reach a crucial inflection point of sub $100/kWh prices. Experts widely note that $100/kWh for battery packs is the target price point needed for electric vehicles to be cost-competitive with gasoline-powered vehicles, unlocking a pivotal vector for EV adoption. The declining price of battery packs could mean EV Prices Could Be Similar to Gas Cars by 2023.

🌟Amazon’s Zoox AV Has A Massive Battery Pack. Zoox unveils its autonomous EV equipped with a mega battery, bidirectional driving capabilities, and four-wheel steering. Zoox’s shuttle-like vehicle boasts a 133 kWh battery which is slightly bigger than the packs that currently power Tesla’s most capable vehicles.  The company says the battery allows for up to 16 hours of continuous operation on a single charge.Speaking of Amazon, Did You Catch A Glimpse of The Rivian/Amazon Delivery Van?

Spin Upgrades Its eScooter Software in The Name of Pedestrian Safety. Ford's micromobility unit Spin will equip eScooters with computer vision powered software to alert pedestrians of sidewalk riders with hopes of increasing sidewalk safety. The new software upgrades are intended to provide more robust insights into riding behavior and enable a shift towards more advanced safety tech deployments. Elsewhere in micromobility, Ola Invests €265M in eScooter Plant and A Helpful Illustration of The Sector Landscape. 

The Only Path to Carbon Neutral Flights. While there’s been talks around zero-emissions travel for short to medium distanced flights, long haul travel remains a topic of discussion for aviation companies. United Airlines recently became the first airline committing to carbon neutrality by using a rare technique, carbon removal and carbon-capture technology. The plan sounds nice in theory but permanently removing 1T of CO₂ costs about $800. United emits about 34M metric tons of CO₂ annually, seemingly making the cost to remove that much carbon about $27B per year, the rough equivalent of United’s 2019 gross profits.Focusing on smaller air modals, US Bans DJI due to ties with Chinese government.

Biden’s EV Push Is Taking Shape. Within his first few months in office, a strong push for EVs/electrification is expected from the Biden Administration. Through strategic cabinet appointments, many believe the admin will put the country on a path to capturing more of China’s dominant global EV market share first through targeted and bipartisan legislation.Related, industry leaders praise Buttigieg Pick As Transportation Headas EV Subsidies Double in Japan as decarbonization efforts ramp.

Europe’s Night Trains Prime for A Resurgence. 2013 and 2014 were rough years for European night trains but the recent announcement of new routes across 13 European cities sparks an inclination of optimism for the once dead transit system. Popularity was never a problem for the trains, rather it was questionable profit margins that halted operations. With travelers avoiding cramped air cabins, they’ve turned to a more spacious and economical option, contributing to a recent uptick in ridership.

Can ADAS and DMS Work Together?. A growing consensus around the benefits of DMS is driving new regulation and safety ratings for new model cars. Studies find that the longer a driver uses the partial automation, the more careless he or she gets, creating a desperate need for DMS synergies with ADAS. Analysts note the irregularities DMS is detecting in the driver must translate into core ADAS actions as braking and steering.As electrification efforts ramp, Bosch Preps Its Billion Euro Vehicle Computer Businessas VW Adjusts Production for Chip Shortage.

Fundraises and M&A 💸

HumanForest Raises £1.27M Through Crowdfunding. HumanForest is a London-based micromobility startup. New funds will be used to expand its ebike fleet to 1.5K and relaunch London-wide in Spring 2021.

The Routing Company Raises $5M Led by The Engine. The Routing Company (Routable AI) is an on-demand vehicle routing and management platform that partners with cities to power the future of public transit. New funding will be used to accelerate commercialization of the startup’s rideshare technology and refine its product.

DASH Systems Raises an $8M Seed Led by 8VC. Based in LA, DASH Systems is an innovative solution to delivering commercial packages at a fraction of the cost and at a higher speed than traditional services. Funding will help scale the team and help further the development of its pod tech.

Tive Raises $12M in Series A Funding Led by RRE Ventures. Tive is a Boston-based startup, is building a hardware and software platform to help track the conditions of a shipment. Tive intends to use the funds to accelerate growth and drive product innovation for shipment tracking, alerts and analytics.

Iris Automation Raises $13M in Series B Funding From Bee Partners, OCA Ventures, and Others. Based in the Bay Area, Iris Automation is a safety avionics technology company pioneering Detect-and-Avoid systems and aviation policy services that enable customers to build scalable Beyond Visual Line of Sight (BVLOS) operations for commercial drones. Fresh capital will help improve and extend its tech, and also work to provide demonstrations of its efficacy in partnership with regulators.

GoFor Raises $20M in Series A Funding Led by Builders VC. Based in Ottawa, Ontario GoFor is a last-mile, on-demand and same-day delivery company. The fresh capital will help the company’s ongoing expansion into the US across 11 new cities.

Bionic Secures $20M in Series A Financing Led by Samsung Catalyst Fund. The Ausberg, Germany based company manufacturers smart robotic exoskeletons and related software solutions. Funding will go towards business development and the buildout hardware and the cloud-based software platform.

CloudTrucks Raises $20.5M in Series A Funding Led by Caffeinated Capital. The CloudTrucks app helps truck owners and operators efficiently manage their businesses with technology targeted to the unique needs of their industry. CloudTrucks intends to use the new funding to accelerate product development and recruitment of top talent in data science, engineering, operations, and sales.

ZeroAvia Secures $37.7M in Series A Funding Led by Breakthrough Energy Ventures. ZeroAvia is building the first practical, zero-emission powertrain for commercial air travel. Fresh funds will be used for the ongoing development of its ZA-600 hydrogen fuel cell powertrain.

cargo.one Raises a $42M Series B Led by Bessemer Venture Partners. cargo.one is a digital platform for freight forwarders to search, compare and book air freight capacities across airlines. The new investment will fuel the German company’s expansion in North America.

Sono Motors Raises €45M in Series C Funding Led by Swedbank and DNCA. Sono is the maker of the world’s first solar EV capable of self charging. New financing will help further the development of the automaker’s popular vehicle, the Sion.

Bolt Raises $128M Led by D1 Capital Partners. Bolt is an Estonia-based on-demand transportation platform providing ride-hailing, scooter-sharing and food-delivery services. Funding will help expand its on-demand transportation network in Europe and Africa.

Lalamove Seeks Funds at $8 Billion Valuation. Based in Hong Kong, Lalamove is an on-demand logistics and delivery firm. The company is seeking capital at a valuation at 4X the level it raised funds at last year.

Company Building 🛠️

5 Predictions for 2021. The prediction around blockchain going mainstream was particularly interesting. We think the barring factor is not adoption as a reserve “currency” but interoperability, authentication, and real value-add (many problems can be solved without blockchain).

David Sacks on the Best SaaS Customer. Hint: go where the money is and that’s around team plans rather than individual plans. While individual plans might offer great early wins, group or division-wide usage is how great enterprise SaaS companies ramp.

On Hiring Independent Board Members. “Don’t rush this process. Build rapport over time. Start building these relationships now. Your VCs have a list of loyal candidates at the ready – If they drive the process, it’s unlikely the new BOD member will be truly independent.”

Who's Hiring? 👩‍💻

Visibility Management Analyst at sennder in Berlin, Germany.

Controls Engineer at Gatik in Toronto, ON.

Full Stack Engineer at Backbone AI in New York, NY.

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.