Dynamo Dispatch (2024/08/05)

Dynamo Dispatch (2024/08/05)Issue 296 | Sennder, Sora Fuel, Altana
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Dynamo Dispatch (2024/08/05)
Issue 296 | Sennder, Sora Fuel, Altana
Madelyn O'Farrell and Derrek Li
Aug 5

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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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🎙 Check out Dynamo's podcast series, The Future of Supply Chain.
🤝 Interested in meeting with Dynamo? Schedule here with Derrek and Madelyn.
Weekly Commentary 💭
💥 Dynamo portfolio company Sennder has purchased the European ground transportation assets of CH Robinson, the second-largest logistics provider globally after Amazon. The move puts Sennder in the top 5 of FTL services in Europe, and is a great example of how the team continues to build scale through inorganic efforts in addition to its organic growth. We’re grateful to be a part of this journey to transform the freight brokerage industry in Europe! For more, check out this Techcrunch article.
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Madelyn, Derrek, and the rest of the Dynamo team
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Supply Chain 📦
⭐ China Factory Activity Shrinks for Third Month in Hit to Growth. China's factory activity contracted for the third consecutive month in July, with the official manufacturing PMI hitting 49.4, slightly worse than June's 49.5 and below the 50-mark indicating contraction. The non-manufacturing measure, covering construction and services, also fell to 50.2, suggesting a slowdown. The trade surplus hit a record high last month, driven by surging exports and declining imports, which has raised concerns among China's trade partners. This weak data underscores the challenges Beijing faces in sustaining faster economic growth, as domestic consumption remains weak and exports face external headwinds. Similarly elsewhere, America’s Post-Covid Factory Boom is Running Out of Steam and Mexico’s Economic Growth Undershoots Forecasts as Woes Mount.
Riding With a Trucker, Witnessing India’s Past and Potential. India's logistics sector is grappling with significant challenges despite recent infrastructure improvements under Prime Minister Modi's government. The national highway system has expanded and tax payment processes have been digitized, but transporting goods remains slow and unpredictable due to road hazards and congestion. This situation poses a major impediment to India's ambitions of boosting manufacturing and exports, especially as global companies seek alternatives to China. While the government's infrastructure projects have made progress, India's logistics efficiency still lags behind other major Asian economies, underscoring the need for further development to support economic growth. Over in the US, Isuzu to Enter US EV Truck Market Ahead of Tougher CO2 Rules.
After Years of Raising Prices, Food Companies Hit Consumers’ Limits. Food companies are implementing strategies to counteract consumer pushback against high prices while maintaining their substantial profits. Restaurants are launching various deals, and manufacturers are slowing price hikes, offering discounts, and introducing new products to attract customers back. Despite experiencing increased profits during the pandemic, food companies now face pressure from consumers and politicians criticizing their pricing practices especially as consumer spending continues to show signs of tightening. Unrelated, Gen Z Getting Into Supply Chain Management.
Power Problems Disrupt Port of LA’s Green Transition. The Port of LA is struggling with power reliability as it transitions to green technology, posing challenges for the mandate to phase out diesel-powered machinery by 2030. Terminal operators report frequent power surges and lulls that disrupt electric cranes, automated gates, and computer systems, halting cargo operations. The Los Angeles Department of Water and Power attributes these issues to unusual events and plans a $500M project to improve power reliability by 2029. Meanwhile, the Port of Long Beach, served by Southern California Edison, experiences fewer power problems but still anticipates a significant increase in power needs by 2030. Data-wise, Port of Long Beach ‘Supply Chain Information Highway’ Gets $7.9M Grant.
Amazon Has to Recall More Than 400K Dangerous Products. The US Consumer Product Safety Commission (CPSC) has held Amazon legally responsible for recalling over 400K hazardous products sold by third parties on its platform, citing serious risks including death and electrocution. The products in question include highly flammable children's pajamas, faulty carbon monoxide detectors, and unsafe hair dryers. The CPSC unanimously voted to classify Amazon as a "distributor" of these products, making it legally accountable under the Consumer Product Safety Act. Amazon must now create a CPSC-approved plan to properly recall these dangerous items and notify consumers about the risks after its initial efforts were deemed insufficient. Amazon plans to appeal the ruling, maintaining that it has proactive measures in place to ensure product safety and immediately addresses any issues when they arise. In more positive news, Amazon Pushes Fast Delivery Into Rural Areas in Challenge to Post Office.
Mobility 🚗
⭐ US Likely to Ban Use of Chinese Software in Autonomous Cars. The US is planning to impose a ban on the use of Chinese software in autonomous and connected vehicles with Level 3 automation and above due to national security concerns. This proposal will require automakers to verify that their vehicle software is not developed by foreign entities of concern, particularly China. The ban also targets vehicles with advanced wireless communication modules from China, addressing fears that data collected by these vehicles could be accessed by Beijing. The move has drawn criticism from China, which argues that such measures hinder fair competition and international trade. Also on China tensions, VW and BMW Chiefs Warn on EU’s China EV Tariffs Amid Falling Profits.
Official: Honda, Nissan, and Mitsubishi Are Teaming Up. The Honda-Nissan alliance, announced in March, has expanded to include Mitsubishi, with the three companies signing a memorandum of understanding to collaborate on electric vehicles and software. Mitsubishi's CEO, Takao Kato, emphasized the importance of partnerships in the rapidly evolving automotive industry, highlighting the potential for new opportunities through this collaboration. Additionally, Nissan and Honda have agreed to jointly develop software-defined vehicles, focusing on autonomous driving technology, connectivity, and artificial intelligence, as well as new batteries and electrically driven axles. They will also share models to complement each other's lineups, including both combustion and electric vehicles, with Nissan already holding a 34% stake in Mitsubishi.
Uber and BYD Partner to Accelerate Global EV Transition. Uber and BYD have entered a multi-year strategic partnership to introduce 100,000 new BYD EVs to the Uber platform across key global markets, starting with Europe and Latin America. This partnership aims to make EV ownership more affordable for Uber drivers by offering competitive pricing and financing options, ultimately accelerating the adoption of EVs on the platform. Additionally, the collaboration will explore discounts on charging, maintenance, insurance, and future deployment of autonomous-capable BYD vehicles. Both companies are committed to promoting greener transportation, with Uber drivers switching to EVs significantly reducing emissions and introducing many riders to their first EV experience. Also in Uber news, Uber and Lyft Reach Deal with the City to Downshift Driver Lockouts.
China’s Robotaxi Dreams Spark Economic Anxiety Over AI’s Threat. In Wuhan, a city of 14M, Baidu's deployment of over 500 electric robotaxis is reshaping the local transportation landscape, with plans to add 1,000 more by year's end. This push aligns with President Xi Jinping's strategy to focus on high-tech industries, moving away from traditional sectors. However, the cautious driving of these robotaxis has led to traffic jams and public frustration, earning them the nickname "silly radishes" from locals. The rise of driverless taxis raises significant economic concerns, especially for the 24,000 human taxi drivers in Wuhan, amid fears of job losses and the broader impact of AI on employment. Related, China Flooded With Robotaxis Causing Traffic Jams.
Volvo Car Sales Rose Over 6% on Year in July. Volvo reported a 6.1% increase in global sales in July, driven by the popularity of its fully-electric cars in Europe. The Swedish automaker sold 57,447 cars in July, up from 54,165 the previous year. European sales surged 40% to 28,390 cars, while sales in China dropped 31% to 9,775 cars, and US sales fell 11% to 9,597 cars. Fully-electric and plug-in hybrid models made up 49% of Volvo's global sales, with fully-electric models alone accounting for 25%. Also, Pricing, Interest Rates Temper Sales Rebound.
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 💸
💥 Sennder Acquires CH Robinson’s European Business. Sennder is a German freight forwarding unicorn. CH Robinson is estimated to be the second-biggest logistics provider globally. The acquisition of the European ground transportation assets CH Robinson allows Sennder to continue to expand its fleet and overall footprint.
Sora Fuel Raises $6M in Seed Funding. Sora Fuel produces sustainable aviation fuel using water, air, and renewable energy. The funding will be used to expand the team, develop commercial partnerships, and fuel technology development. The round was led by The Engie Ventures with participation from Wireframe Ventures.
ElectricPe Raises $8M in Seed Funding. ElectricPe is an India-based EV charging aggregator startup. The capital will be used to expand its operations to new geographies and for tech advancement. Green Frontier Capital led the round, with participation from Blume Ventures, Micelio Fund, and NB Ventures.
Axle Energy Raises $9M in Seed Funding. Axle Energy is a grid decarbonization & stabilization startup focused on connecting flexible assets, such as EVs and home batteries, to energy markets that consumers typically don’t have access to. The funding will enable Axle to expand within the UK and into other markets in the EU. Accel led the round.
Intelmatix Raises $20M in Series A Funding. Intelmatix assists companies in managing inventory, optimizing fleets, and improving workforce utilization through decision intelligence technologies. The funding will be used to expand operations and reach across the MENA region and beyond. Shorooq Partners led the round with participation from Olayan Finacning Company, Rua Growth Fund, Saudi Technology Ventures, and others.
Trio Mobil Raises $26.5M in Growth Funding. Trio Mobil is a provider of AI and IoT solutions for industrial workplace safety and efficiency. The funding will be used to enhance its ability to support customers globally, accelerate growth initiatives, and strengthen operations in both its US and international markets. NewSpring Growth led the round, with participation from existing investors 212 and TIBAS Ventures.
Unspun Raises $32M in Series B Funding. Unspun is a fashion-tech startup that provides 3D weaving technology eliminating waste and emissions and enabling circular production for the fashion sector. The capital will be used to scale its technology. DCVC led the round, with participation from Lowercarbon Capital, E12, Decathlon, and SOSV.
Knowde Raises $60M in Series C Funding. Knowde is an online marketplace for chemicals and polymers. The funding came from new investors Blue Cloud Ventures and Point72 Private Investments as well as existing backe...