Joby Aviation, a California transportation company developing an all-electric, vertical take-off and landing passenger aircraft, has announced it will acquire Uber’s electric air taxi business, Uber Elevate.
In addition, Uber has invested $75 million into Joby as part of the deal.
Joby has an ambitious plan to operate as early as 2023.
This investment comes in addition to a previously undisclosed $50 million investment made as part of Joby’s Series C financing round in January 2020.
Under the terms of the deal, Joby Aviation will acquire Uber Elevate, while the two parent companies have agreed to integrate their respective services into each other’s apps, bringing together ground and air travel for future customers.
“We were proud to partner with Uber Elevate last year and we’re even prouder to be welcoming them into the Joby team today, while deepening our cooperation with Uber,” said JoeBen Bevirt, founder and CEO, Joby Aviation. “The team at Uber Elevate has not only played an important role in our industry, they have also developed a remarkable set of software tools that build on more than a decade of experience enabling on-demand mobility.
“These tools and new team members will be invaluable to us as we accelerate our plans for commercial launch.”
Uber Elevate has played an important role in laying the groundwork for the aerial ridesharing market by bringing together regulators, civic leaders, real estate developers and technology companies around a shared vision for the future of air travel, the company said. It was established in 2016.
Its software tools enabling market selection, demand simulation and multi-modal operations are at the center of the company’s work.
Joby will operate an affordable, quiet and clean transportation service, using the revolutionary all-electric, vertical take-off and landing aircraft it has spent the last decade developing. With a range of up to 150 miles and a top speed of 200 mph, the vehicle and the service has the potential to make a significant difference to the lives of travelers.
“Advanced air mobility has the potential to be exponentially positive for the environment and future generations,” said Dara Khosrowshahi, CEO of Uber. “This deal allows us to deepen our partnership with Joby, the clear leader in this field, to accelerate the path to market for these technologies.
“We’re excited for their transformational mobility solution to become available to the millions of customers who rely on our platform.”
The financial terms of the acquisition were not disclosed. The transaction is expected to close in the first quarter of 2021.
Uber’s new $75 M investment brings its all-time total investment in Joby to $125 million and Joby Aviation’s total funding, including previous rounds, to $820 million.