DELTA'S "HOME TO AIRPORT' AIR TAXI SERVICE

Delta to Invest Up to $200 Million in eVTOL Maker Joby Aviation

                                    Source:  Joby Aviation

Flying Taxis Are Right on the Horizon

Delta Airlines is making a big bet on the future of flying taxis.  It is partnering with leading, California-based eVTOL maker Joby Aviation to deliver "Home to Airport" flying taxi services.  Delta just made a $60 million investment in Joby for a 2% stake in the company. Delta has the option to invest $200 million in Joby if Joby reaches certain operational milestones. The partnership's goal is to push air taxis forward to become fully operational in the commercial marketplace.  

Tech Specs

Joby's 5-seat aircraft is an electric vertical takeoff and landing (eVTOL) vehicle that's a cross between a helicopter and a drone. It's propelled by 6 tilt-rotors and battery powered electric motors.  It can hit speeds of 200 mph and has a range of 150 miles on a charge. The flying taxi prototype has flown more than 1,000 test flights. It operates with zero emissions and makes very little noise.  The "Home to Airport" air taxi service will start first in New York City and Los Angeles and then roll out in other cities.  The Delta-Joby partnership is mutually exclusive in the US and UK for 5 years with the option to extend the arrangement.  Simultaneously, Joby will also transport passengers from cities to airports.  The time savings is huge. The one-hour trip from Manhattan to JFK Airport would take only ten minutes.  

Opportunities and Challenges

Joby is a leading eVTOL startup with big pockets behind it.  Besides Delta, Toyota and Uber are also investors.  Joby is a publicly traded company.  Joby flying taxis have not been fully approval for commercial operations anyplace in the world.  But the company believes that it will clear regulatory approvals and go into commercial operations in 2024.

Air Taxis Are Attracting Big Bucks

In the past two years, investors have poured $7 billion into air taxi manufacturers.  Other airlines like United are buying vehicles and investing in eVTOL/flying taxi companies like Embraer's Eve.  Delta is not buying any air taxis at the moment.  It is investing in Joby and will rely upon Joby to operate and service a fleet of air taxis for Delta.  For more news stories like this, The Future of Flying

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