Dynamo Dispatch (2024/09/09)

Dynamo Dispatch (2024/09/09)Issue 300 | Rapido, Seegrid, Agrim
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Dynamo Dispatch (2024/09/09)
Issue 300 | Rapido, Seegrid, Agrim
Madelyn O'Farrell and Derrek Li
Sep 9

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💥This marks our 300th issue of the Dynamo Dispatch! Thank you all for joining us on this journey, we love to nerd out on all things supply chain and mobility with you.
🔍 We’re searching for passionate entrepreneurs and business leaders for a Founder-in-Residence for a project in collaboration with AI Fund. We’ve identified an opportunity to build a startup in the freight brokerage industry given the trends we’re seeing with human-in-the-loop AI. Read more about what we’re looking for here.
🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.
We Are Dynamo,
Madelyn, Derrek, and the rest of the Dynamo team
Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
⭐ The Geopolitics of Supply Chains: Lazard Report. The report highlights how geopolitics is increasingly reshaping global supply chains and foreign investment, with companies needing to adapt to diverging political and trade conditions across countries. While China remains a dominant manufacturing power, the complexity of shifting away from reliance on China is evident, and no single country is likely to replace it. Countries such as India, Vietnam, Mexico, Poland, and Thailand present potential alternatives, each with unique strengths and challenges, such as labor supply, infrastructure, and political stability. Companies must incorporate geopolitical, regulatory, and climate-related factors into their supply chain strategies to navigate these evolving landscapes effectively. In the US, Factory Orders Rise in July After Two Months of Weakness and Why Can’t the US Build Ships.
Typhoon Yagi Wrecks Havoc on Infrastructure, Factories in Vietnam. Typhoon Yagi, Asia's strongest storm this year, was downgraded to a tropical depression after causing significant damage in northern Vietnam, affecting factories and infrastructure in key industrial hubs. The storm led to widespread flooding, power outages, and telecommunications disruptions, particularly in Hanoi and Haiphong, killing 21 people and injuring 229 in Vietnam. Industrial parks in Haiphong were heavily damaged, with at least 80% of factories impacted, and recovery is expected to take weeks as well as broader impact on the supply chain. Elsewhere, Severe Rainstorms Swamp India’s Container Supply Chains.
Nvidia’s Future Relies on Chips That Push Technology’s Limits. Nvidia's latest AI chip Blackwell is twice as large and far more complex than its predecessors, with 2.6 times the transistors. The size and complexity of the chip have led to manufacturing challenges, contributing to narrower profit margins and a $908M provision in the latest quarter and causing Nvidia's stock to fall. The primary issue stems from the difficulty of knitting two large chips together, requiring a new manufacturing process that has faced yield problems in a process that requires near perfection. Nvidia is addressing these challenges with design changes, but challenges will likely persist across the industry going forward as chipmakers continue to add more processing power by increasing chip size. Unrelated on the trucking front, Average Truckload Driver Pay Up 10% in Two Years and California Issues Draft Framework for Autonomous Heavy Trucks.
What the Surge in Empty Container Moves Says About the Freight Market. The movement of empty containers into the Los Angeles market has surged, indicating strong demand outpacing available supply on the West Coast and overseas. The flow of consumer goods from Asia to Southern California primarily serves the eastern US, leading to significant imbalances in transportation capacity as empty containers return to Asia. Intermodal container volumes have grown, relieving some pressure on trucking capacity, which remains abundant for now. However, risks of tightening capacity loom, especially as instability in the trucking sector and strong demand could lead to a more constrained transportation market in the fourth quarter. Overseas, Singapore Increases Night Container Moves to Keep Backlog Low.
China Needs More Factory Robots. Can It Build Its Own? China, once known for its cheap labor, is increasingly turning to industrial robots due to rising wages and an aging population. In 2022, the country installed over half of all global industrial robots, and demand for factory automation is expected to grow as China aims to modernize its manufacturing sector. While foreign companies like Japan's Fanuc and Switzerland's ABB have traditionally dominated the market, Chinese firms such as Shenzhen Inovance Technology are rapidly gaining ground, particularly in collaborative robots. However, long-term growth for both local and foreign players depends on the recovery of China's broader economy. Completely unrelated, FedEx Announces Expansion of FedEx Fulfillment With Nimble Alliance.
Mobility 🚗
⭐ Europe Pulls Back From EV Shift as Consumers Snub Pricey Models. Europe's electric car transition is stalling as automakers like Volkswagen and Volvo scale back their ambitions due to a lack of affordable models and reduced government incentives. The European auto market is still below pre-pandemic levels, and manufacturers face a mismatch between investment plans and actual consumer demand. Chinese competitors, with more affordable EVs, are gaining ground in Europe, while European companies struggle with high production costs. Related, Major Car Brands Risk £12B Fine for Missing Net Zero Goals as EV Sales Slow, Renault CEO Says.
Uber to Partner with Wayve to Deploy AVs on its Platform. Uber and autonomous driving startup Wayve will collaborate to deploy self-driving vehicles on Uber’s ride-hailing network across multiple global markets. Uber will invest in Wayve, though the investment amount was not disclosed, as part of Wayve's $1.05B Series C funding round led by SoftBank, Microsoft, and Nvidia. Wayve aims to use Uber's data to enhance its AI-powered autonomous driving technology and potentially reach over 150M of Uber’s global users. This partnership is part of Uber's broader strategy of working with industry partners, following similar collaborations with Waymo and Cruise for autonomous vehicle deployment.
BMW, Toyota Aim to Make Hydrogen-Powered EVs Mainstream With Partnership. BMW and Toyota are partnering to develop hydrogen-fueled electric cars, aiming to expand the nascent hydrogen vehicle market. BMW plans to release hydrogen-powered versions of an existing model line by 2028, using powertrains developed in collaboration with Toyota. Hydrogen-powered cars, or fuel-cell electric vehicles (FCEVs), generate electricity from hydrogen, offering faster refueling and better towing capability compared to traditional EVs, and they are seen as complementary rather than competitors to battery-powered EVs. Although infrastructure and safety concerns pose challenges, both companies are committed to expanding the hydrogen economy and infrastructure. For more, BMW to Launch Hydrogen Series Model by 2028 and elsewhere, America Opens the Factory of the Future and Smashes EVs: New Engine and 100,000 Units per Year.
Musk Denies Report His xAI in Talks over Tesla Revenue. Elon Musk refuted claims that xAI, his AI startup, would share Tesla revenue for AI technology. The Wall Street Journal reported Tesla would license xAI's models for self-driving tech, but Musk called this inaccurate. He stated Tesla learned from xAI engineers but doesn't need to license their technology. The report also suggested xAI's involvement in developing Tesla's voice assistant and Optimus robot software. Previously, Musk hinted at xAI's potential role in advancing Tesla's FSD and data center projects. Also on Tesla, Apparent Tesla Robotaxi Training Vehicle Sightings are Increasing and Tesla Full Self-Driving Is Finally Coming To Europe And China In 2025.
Texas Utility, Ford Partner to Offer Daily Free Home EV Charging Hours. Ford and TXU Energy have partnered to offer a new retail energy program, "TXU Energy Free EV Miles," for Ford EV customers in Texas. The program allows participants to charge their vehicles at home during off-peak hours (7 p.m. to 1 p.m. the next day) at no cost, with bill credits for the electricity used during these hours. The initiative is aimed at educating consumers about the benefits of EVs and incentivizing charging during lower grid demand periods. Elsewhere in EV charging, DOT Awards $521M in EV Charging Grants Amid Slowing Sales Growth.
The Future of Supply Chain 🎙️
Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A 💸
Trestle Raises $2.3M in Pre-Seed Funding. Trestle is a construction-tech subcontractor and supplier data centralization and performance management solution. The funding will be used to expand operations and the company’s business reach. The round was led by Lerer Hippeau and joined by Metaprop, Laconia Capital, Alumni Ventures, The LegalTech Fund, Redbud VC, and Meridian Ventures.
Signol Raises $3.3M in Funding. Signol is a behavioral science company which aims to decarbonize aviation and shipping by changing workforce behavior. The round will be used to improve the solution and expand the company’s commercial presence, as well as execute a POC in the business travel sector. TMV led the round.
Oxylus Energy Raises $4.5M in Seed Funding. Oxylus Energy is a green methanol startup to make eFuels for aviation and shipping. The funding will be used to build a production-scale reactor. Toyota Ventures and Azolla Ventures led the round, with participation from Earth Foundry and Connecticut Innovations.
Skarper Raises £4.5M in Funding. Skarper is a ultralight and portable drive system that transforms a regular bicycle into an eBike. The funding will be used to support its GTM plan as it prepares to deliver its first products in Q4 this year. Adjuvo led the round, with participation from existing investors including Mobilitech Capital and Starry Group.
Cowboy Raises $5.5M in Funding. Cowboy designs and sells eBikes. The round will enable the company to strengthen its position with Asia-based suppliers. Hong-Kong-based Cypress Capital led the round.
Portex Raises $6.25M in Seed Funding. Portex is an AI freight management platform for SMB shippers. The funding will be used to accelerate its AI-focused product development and GTM. Footwork led the round, with participation from Cowboy Ventures, Susa Ventures, and Base 10.
Demex Group Raises $10.25M in Series A Funding. Demex Group is an analytics and intelligence company facilitating stop-loss insurance protection for severe weather. Congruent Ventures led the round, with participation from Moxxie Ventures, MetaProp, and Blue Bear Capital.
Agrim Raises $17.3M in Series B Funding. Agrim is an India-based marketplace providing farmers better access to inputs like seeds and pesticides. The funding will be used to expand its catalog of agri-inputs from over 30K items to 150K in the next three years. Asia Impact led the round, with participation from Accion Venture Lab, India Quotient, Kalaari, and Omnivore.
Seegrid Raises $50M in Series D Funding. Seegrid builds AMRs for pallet material handling. The funding will be used to accelerate its autonomous lift truck market initiatives. Giant Eagle Incorporated and G2 Venture Partners led the round.
Rapido Raises $200M in Funding. Rapido is an India-based two-wheeler taxi platform. The funding will be used to expand its newly launched four-wheeler taxi service. WestBridge Capital led the round, with participation from Nexus Venture Partners, Think Investments, and Invus Opportunities.
WunderMobility Acquires GoUrban. WunderMobility is a SaaS platform which enables shared mobility providers to optimise daily operations. GoUrban manages the bike-sharing scheme Joco in New York City and others. The acquisition will enable WunderMobility to become the largest independent free-floating and station-based micromobility and car-sharing platform.