Flying taxis, a concept once relegated to science fiction, were anticipated to make a bold debut during the Paris Olympics last summer, soaring above the City of Light during celebratory events. However, these plans were ultimately shelved due to concerns regarding certification.
Nonetheless, Toyota remains undeterred and is increasing its investment in air mobility ventures. The company has just committed an additional $500 million to Joby, a California-based firm that made waves last November by successfully completing the first-ever test flight of an air taxi over a densely populated U.S. city—New York City. Just last month, Joby also secured an agreement with the United Arab Emirates, potentially paving the way for commercial passenger services in Dubai as early as 2025.
In the United States, plans for commercial operations are gaining traction as well. Delta Air Lines has partnered with Joby to offer air taxi services to its passengers, while United Airlines is collaborating with Archer Aviation.
Air taxis, formally known as electric vertical take-off and landing (eVTOL) vehicles, promise a transportation alternative that is faster, quieter, and environmentally friendly compared to traditional ground travel.
Joby’s electric air taxi is engineered to accommodate a pilot and up to four passengers, with a maximum speed reaching 200 miles per hour. Some eVTOL designs are also in development to operate autonomously.
Toyota’s interest in Joby dates back to 2019. Following this latest investment, the total support from the Japanese automotive giant approaches $900 million, aimed at facilitating Joby’s certification and commercial production processes.
Beyond financial investment, Toyota is also sharing its expertise in process planning, manufacturing, and tooling design to benefit the Joby team in California. Last year, the two companies formalized an agreement for Toyota to deliver key powertrain and actuation components for Joby’s aircraft.
Overcoming safety and certification challenges remains a critical barrier to the widespread rollout of air taxi services, as evidenced by the cancellation of the Olympic flight of Germany’s Volocopter.
However, numerous companies worldwide, including Hyundai and XPeng HT Aero from China, are competing for a stake in the air mobility sector. The global market for ground taxi services and e-hailing is currently valued at about $500 billion, with research from McKinsey indicating that over 20% of users of these services can “definitely imagine” using flying taxis.
Currently, plans for air taxi services in the U.S. primarily involve airport-to-city routes. Nonetheless, Joby is looking further down the road, especially following its acquisition of Uber Elevate in 2020, with aspirations to someday integrate their air taxis with Uber’s ride-hailing application.