Despite the mobility landscape experiencing a downturn in 2024, as per Dealroom data, with only $225M raised, a 71.1% decrease from 2023’s $781M, the industry has shown resilience. Notably, Shift (Saudi Arabia) secured $82.8M in Late VC, Deep Drive (Germany) landed $30M in Series B, and Pony.ai (USA) secured $27M in Late VC, demonstrating the industry’s potential for growth even in challenging times.
A major concern is the drop in investment in shared and air mobility. What can we expect next year? Tech Funding News spoke to several mobility leaders to find out.
David vs. Goliath challenge of EVs and hybrid markets
As we enter 2025, air and shared mobility are brimming with innovation, driven by technological advancements, evolving consumer preferences, and a focus on sustainability.
A key trend is adopting electric vehicles (EVs) and hybrids. In fact, EV demand is rising, with projections of 18.1 million units sold by late 2025. Yet, the sector faces a paradox: growth is slowing compared to previous years due to high costs and insufficient charging infrastructure.
Felix Poernbacher, co-founder and co-CEO of Munich-based DeepDrive, a startup building EV motor tech production lines in Europe, explained to TFN: “The automotive industry is at a turning point. EV adoption is accelerating, but challenges persist: high costs, complex supply chains, and the need for energy efficiency. While Europe’s industry has been slower to adapt, a growing emphasis on disruptive technologies and collaborative innovation is closing this gap. New entrants and established players drive radical changes prioritising efficiency and affordability — crucial for global EV adoption.”
While EV adoption challenges persist, hybrid vehicles are emerging as an attractive alternative for consumers and manufacturers. Some experts see this trend as a “pragmatic transition” from internal combustion engines (ICE) to fully electric vehicles. Poernbacher added, “Young and agile companies are helping bridge the gap between innovation and scale. The key lies in symbiotic partnerships — David with Goliath — where agile, technology-driven companies collaborate with established OEMs to bring solutions to market faster.”
Autonomous driving and flying are more realistic than you think
Another industry trend is the emergence of autonomous driving, with a growing interest in SAE Level 2 vehicles with advanced driver-assistance systems. These technologies will dominate the market, accounting for nearly half of all light vehicle sales in 2025.
Similarly, advances in unmanned aerial systems (UAS) and electric vertical take-off and landing (eVTOL) aircraft are making autonomous flying technologies a reality. One of the most exciting developments in this field is the emergence of the advanced air mobility (AAM) sector, which is gaining momentum. This field is focused on developing eVTOL aircraft designed for urban environments, providing services such as air taxis and cargo transportation.
In a conversation with TFN, Kellen Xie, Senior Vice President at AutoFlight, a Germany-based company developing electric autonomous aircraft that secured $100M from CATL in Late VC, noted: “eVTOL is one of the most influential innovations in mobility technology. Pure electric, vertical take-off and landing capable aircraft present air mobility.”
The startup focuses on developing autonomous eVTOL for urban air mobility. Its flagship model provides efficient, safe, and sustainable transportation within metropolitan areas. AutoFlight stands out with a simplified lift-cruise configuration, superior aerodynamic design, and a more efficient vertically integrated self-developed electric motor and controller. Xie also shared the company’s vision of providing direct and flexible air mobility access for everyone and greatly reducing travel time.
Meanwhile, Nikita Ermoshkin, an ex-SpaceX engineer and co-founder of US-based Airhart Aeronautics, a YCombinator-backed pioneer in personal aviation, noted: “Many companies are focused on distant-future technologies like air taxis, electric aircraft, and fully autonomous aircraft. These innovations are critical but face challenges, including strict safety requirements, heavy regulation, and limitations in battery technology for electric aviation.”
Ermoshkin continued: “Airhart envisions the continuous evolution of air mobility through collaboration with regulatory bodies and technological advancements. We aim to revolutionise personal air travel by developing aircraft that are as easy to operate as driving a car, reducing road congestion and offering new personal transportation avenues.”
MaaS is a feasible solution for residents
Mobility-as-a-Service (MaaS) has transformed urban transportation by integrating public transit, ride-sharing, bike-sharing, and car rentals into a single, user-friendly ecosystem. At CES 2025, Uber announced it will use Nvidia’s new generative world model simulation tool, Cosmos, and its cloud-based AI supercomputing platform to support the development of autonomous vehicle technology. This partnership aims to accelerate the scale of autonomous driving.
Matthew Bezzina, CEO of eCabs Technologies, a Malta-based leader in urban mobility, told TFN: “By 2025, ride-hailing giants like Uber and Bolt will face increased pressure to achieve profitability. The days of endless funding for unprofitable growth are over. This shift will affect their pricing, commissions, and market dominance. As these giants tighten their belts, legacy taxi businesses can leverage technology to compete.”
Bezzina continued, “In Europe, reports like the Draghi report call for significant investment in digital infrastructure and reduced overregulation, which hinders innovation. We expect advancements in Mobility-as-a-Service (MaaS), where users can access multiple transport options via a single platform.”
AI and IoT will drive urban mobility in 2025
In 2025, integrating AI and IoT will shape urban mobility, enhancing transportation systems’ efficiency, safety, and sustainability.
Poernbacher from DeepDrive shared his vision: “In 2025, two trends will shape the automotive industry: efficiency breakthroughs and faster development cycles. Automakers must deliver more value at lower costs, requiring next-gen electric drives, advancements in battery systems, and smart collaborations between startups and established OEMs. The focus will be on accelerating technology development and industrialisation to make electric mobility the clear choice for consumers and a sustainable path for the industry.”
Bezzina noted: “AI will improve route planning, provide personalised services, and enhance customer experience, while autonomous vehicles could reduce traffic congestion and increase operational efficiency. Electric vehicles (EVs) and AI-driven fleet management will reduce costs, increase efficiency, and make transportation more sustainable.”
Poernbacher concluded, “The future of urban mobility must be clean, affordable, and sustainable — yet adaptable to growing urban needs. We need technologies that improve efficiency while reducing resource intensity. Electric motors play a pivotal role. In the long term, cities will transition to fleets of highly efficient, lower-cost EVs powered by systems that eliminate dependencies on fragile supply chains.”
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