While OpenAI is dominating the race of world’s most valuable startups with a valuation of $157B, apart from GenAI there are emerging technologies that are also reshaping the world. Among these is the rapidly developing field of autonomous electric flying taxis.
Several major players are competing for dominance in the industry, including Lilium, Volocopter, Wingcopter, Joby Aviation and more. These companies are not just building aircraft; they are re-inventing intelligent transport technologies that could transform urban mobility and the way we navigate our cities in the near future.
Looking at this trend, several major car manufacturers are investing in the eVTOL (electric vertical takeoff and landing) industry as it gains traction. Now, announcements are in Toyota has made substantial investments in this space, notably committing $500 million to Joby Aviation.
This latest funding will support the California-based company in its race to bring eVTOL aircraft to market, with commercial flights slated to begin in 2025.
The investment brings the Japanese car manufacturer’s total commitment to Joby’s electric flying taxis to $894M, cementing the partnership between the two companies, which has spanned nearly seven years. As Toyota deepens its role, the focus remains on Joby’s path to certification and scaling up production of its futuristic flying vehicles.
Joby’s electric flying taxis charging ahead with certification and production
The additional $500M will be disbursed in two tranches, with the first arriving later this year and the second in 2025. For Joby Aviation, which has been making strides in the development of its electric air taxis, this funding is critical in helping the company achieve certification from regulatory bodies—no easy feat in the uncharted skies of eVTOL transportation.
“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt, founder and CEO of Joby Aviation. “The knowledge and support shared by Toyota has been instrumental in Joby’s success, and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel.”
As part of its roadmap to get its air taxis off the ground, Joby has completed its third production aircraft and is currently advancing through the fourth of five required steps for certification. The ultimate goal? To begin transporting passengers in cities around the world by late 2025, starting with Dubai as one of the first launch cities.
Toyota ‘s expertise helping Joby’s electric flying taxis take to the skies
Joby’s electric flying taxi. Picture credits; Joby Aviation
Toyota’s involvement extends beyond mere financial backing. The automotive giant, best known for its manufacturing prowess, has been actively contributing to the engineering and production processes at Joby’s California facilities. Toyota’s engineers are embedded with the Joby team, providing invaluable expertise in design, manufacturing, and assembly—skills honed through decades of building some of the world’s most reliable automobiles.
This partnership isn’t new. In fact, it was solidified last year through a long-term agreement that sees Toyota supplying key powertrain components and other critical parts for Joby’s aircraft. According to Tetsuo “Ted” Ogawa, a Toyota executive, “With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production. We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
A flying future within reach
As the world becomes more urbanised, traffic congestion and pollution have become major challenges. Electric air taxis, like those being developed by Joby, offer a glimpse into a future where sustainable flight could ease gridlock and reduce emissions in crowded cities. Joby is at the forefront of this push, but it’s not alone in the race to the skies.
Other global automakers are also investing in flying cars. Hyundai, for example, unveiled its 120 mph (193 km/h) S-A2 air taxi concept earlier this year, while China’s Xpeng and Stellantis have also entered the eVTOL space. Yet, with the backing of Toyota, Joby Aviation may well be among the first to achieve certification and begin commercial operations.
The future of air travel taking shape in Europe
The eVTOL market is projected to grow from $1.2 billion in 2023 to $23.4 billion by 2030, with a compound annual growth rate (CAGR) of 52% with Germany leading the space in Europe.
Taking a look at some major players in the space in Europe, established with the motto of creating eVTOL multi-copter aircraft for well-organised and fast urban travel, German air taxi unicorn Volocopter is quite popular for working on introducing urban air taxi services at reasonable prices across the world. It focuses on short-distance urban air mobility with its VoloCity model, aiming to provide safe and quiet air taxi services in congested cities.
Founded in 2011 by Alexander Zosel, Stephan Wolf, Thomas Ruf, and Thomas Senkel, Volocopter has raised a total of $725 million over nine funding rounds at a valuation of $1.87 billion. The most recent round, a Series E, included an additional $182 million in funding from NEOM and GLy Capital, bringing the company closer to the certification of its VoloCity air taxi and supporting the launch of its first commercial routes. Volocopter has prominent investors such as NEOM, BlackRock, Geely, Intel Capital, Mercedes-Benz, and United Airlines.
Picture Credits: Lilium
On the other hand, another much hyped air taxi company in Munich born Lilium. The electric flying taxi startup founded in 2015 by a group of engineers and Ph.D. students from the Technical University of Munich (TUM) including Daniel Wiegand, Sebastian Born, Matthias Meiner, and Patrick Nathen, has raised a total of approximately $426 million in funding to date and has got backing from investors like Baillie Gifford who are known for their investments in Amazon, Tesla, Airbnb, Spotify, and SpaceX.
The company achieved unicorn status in 2020, with a valuation exceeding $3 billion.
On a global scale, major tech companies are also preparing to enter the eVTOL market. Uber is collaborating with Aurora Flight Sciences, a Boeing subsidiary, to develop its flying taxi service. Meanwhile, EHang from China is partnering with aviation supplier FACC for its air mobility solutions and Airbus, the European aircraft manufacturer, is actively working on its own flying taxi initiatives.
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