Amazon’s ex-retail boss Dave Clark launches new startup to solve supply chain ‘Franken-software’
Dave Clark
Dave Clark, Amazon‘s former CEO of global consumer, who briefly helmed logistics company Flexport, is returning to the startup world.
Clark on Tuesday launched a new venture, called Auger, which aims to help companies and governments combine the mishmash of “Franken-software” overseeing their supply chains into a single platform.
“At Flexport, I got to see all of these companies in the middle, like the Nikes or Lululemons, and I was amazed at how much of a struggle it is, and how much they still use Excel or Smartsheet or Tableau or something to bring all this disparate data together in such a way that they can do something,” Clark said in an interview. “A shocking amount of supply chain still runs on Excel.”
Clark’s third act follows a short but tumultuous stint at Flexport. Last September, Clark abruptly resigned as CEO of Flexport, allowing for the return of its founder Ryan Petersen. Petersen claimed repeatedly that Clark overspent and overhired during his time at the freight forwarding startup. But documents viewed by CNBC, and sources close to Clark, showed that Petersen and members of Flexport’s board helped implement decisions that Flexport has suggested were ill-advised. Petersen has since taken steps to turn around the business by overhauling its top ranks, implementing layoffs and subleasing excess warehouse space.
Prior to Flexport, Clark developed a storied reputation during his 23 years at Amazon as the architect of its mammoth logistics network. He joined Amazon’s operations division in 1999 and quickly rose through the ranks, becoming one of the most important executives at the company. In 2020, Amazon tapped Clark to head its core retail business after longtime executive Jeff Wilke left the company. Clark departed Amazon for Flexport in 2022.
Clark joined Flexport to bring what he had built at Amazon to “small businesses and other businesses around the world.” He left the startup feeling there was still a gap in the market for supply chain tools, and began to develop the idea behind Auger. The name is meant to convey the drilling tool’s ability to break through things and dive deep.
Robots transport goods to the employees in warehouse at Amazon fulfillment center in Eastvale on Tuesday, Aug. 31, 2021.
the Riverside Press-enterprise | Medianews Group | Getty Images
“I spent the last year with the chance to really sort of step back and think about the best way to tackle this problem,” Clark said. “What do I want to do next? Do I still want to try to tackle this problem? Do I want to do something else? And I just kept coming back to, this should not be a problem for companies with the technology that exists in the world.”
He said a typical company might have “eight to ten to 12 to 20” systems for procurement, forecasting, and enterprise resource planning. The systems can be clunky and are rarely integrated. He wanted to build a platform where companies could manage their supply chain with the “same level of simplicity and intuitiveness as the consumer applications that they use every day.”
Clark, who moved with his family to Texas before leaving Amazon, has returned to his former employer’s backyard in Seattle to work on the new venture, which will be based in Bellevue, Washington. He hopes to pull from the area’s deep bench of tech talent.
Amazon last year rolled out its own supply chain management platform, which can handle the process of transporting businesses’ goods from the manufacturer to customers’ doorsteps. But the service is targeted at businesses that sell on Amazon’s marketplace and use its logistics and fulfillment network.
Auger’s launch comes as venture deal volume has steadily declined over the past few years, aside from investments in artificial intelligence companies. U.S. venture capital exit value this year is expected to reach $98 billion, down 86% from 2021, according to an Aug. 29 report from PitchBook, while venture-backed IPOs are expected to be at their lowest since 2016.
VC activity in the supply chain tech industry has shown recent improvement, although it’s well below the levels seen in 2021 and 2022. Global investment in the space hit $2.4 billion, marking the third straight quarter of growth, according to Pitchbook.
Auger has raised $100 million from venture firm Oak HC/FT. Clark said he soon expects to grow headcount to about 20 employees and intends to launch a “V1” product within nine months.
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Tik Tok creators gather before a press conference to voice their opposition to the “Protecting Americans from Foreign Adversary Controlled Applications Act,” pending crackdown legislation on TikTok in the House of Representatives, on Capitol Hill in Washington, U.S., March 12, 2024.
Craig Hudson | Reuters
The Supreme Court on Friday will hear oral arguments in the case involving the future of TikTok in the U.S., which could ban the popular app as soon as next week.
The justices will consider whether the Protecting Americans from Foreign Adversary Controlled Applications Act, the law that targets TikTok’s ban and imposes harsh civil penalties for app “entities” that continue to carry the service after Jan.19, violates the U.S. Constitution’s free speech protections.
It’s unclear when the court will hand down a decision, and if China’s ByteDance continues to refuse to divest TikTok to an American company, it faces a complete ban nationwide.
What will change about the user experience?
The roughly 115 million U.S. TikTok monthly active users could face a range of scenarios depending on when the Supreme Court hands down a decision.
If no word comes before the law takes effect on Jan. 19 and the ban goes through, it’s possible that users would still be able to post or engage with the app if they already have it downloaded. However, those users would likely be unable to update or redownload the app after that date, multiple legal experts said.
Thousands of short-form video creators who generate income from TikTok through ad revenue, paid partnerships, merchandise and more will likely need to transition their businesses to other platforms, like YouTube or Instagram.
“Shutting down TikTok, even for a single day, would be a big deal, not just for people who create content on TikTok, but everyone who shares or views content,” said George Wang, a staff attorney at the Knight First Amendment Institute who helped write the institute’s amicus briefs on the case.
“It sets a really dangerous precedent for how we regulate speech online,” Wang said.
Who supports and opposes the ban?
Dozens of high-profile amicus briefs from organizations, members of Congress and President-elect Donald Trump were filed supporting both the government and ByteDance.
The government, led by Attorney General Merrick Garland, alleges that until ByteDance divests TikTok, the app remains a “powerful tool for espionage” and a “potent weapon for covert influence operations.”
Trump’s brief did not voice support for either side, but it did ask the court to oppose banning the platform and allow him to find a political resolution that allows the service to continue while addressing national security concerns.
The short-form video app played a notable role in both Trump and Democratic nominee Kamala Harris’ presidential campaigns in 2024, and it’s one of the most common news sources for younger voters.
In a September Truth Social post, Trump wrote in all caps Americans who want to save TikTok should vote for him. The post was quoted in his amicus brief.
What comes next?
It’s unclear when the Supreme Court will issue its ruling, but the case’s expedited hearing has some predicting that the court could issue a quick ruling.
The case will have “enormous implications” since TikTok’s user base in the U.S. is so large, said Erwin Chemerinsky, dean of Berkeley Law.
“It’s unprecedented for the government to prohibit platforms for speech, especially one so many people use,” Chemerinsky said. “Ultimately, this is a tension between free speech issues on the one hand and claims of national security on the other.”
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