Could the Mysterious Drone Sightings be eVTOL Air Taxis?
Mysterious drone sightings in New Jersey, New York, and along the Northeast have garnered worldwide media attention and speculation. While it's easy to lump them all into one category, there are vast differences between the types of sightings. There have been reports ranging from bright coloring changing glowing orbs to drones flashing the Federal Aviation Administration (FAA) required red, white, and green lights at night time.
While there hasn't been one definitive answer to the source and nature of the unidentified drone sightings, it's evident that many of these sightings may actually be manned aircraft and regular drones. When the description of a "car-sized" flying drone is mentioned, it tends to bear a resemblance to electric vertical take-off and landing (eVTOL) aircraft, also called air taxis. Here are two air taxi companies in the aerospace sector with eVTOLs that fit the described sightings.
Joby: Leading the Air Taxi Revolution
Leading eVTOL manufacturer Joby Aviation Inc. (NYSE: JOBY) has been designing aircraft since 2009 with the goal of finally receiving FAA compliance on their air taxis to commence commercial operations in 2025. The company has flown over 30,000 miles with its prototype eVTOLs in the last four years, and it has more trained pilots than any other eVTOL player. Joby's flagship S4 aircraft is a five-seater capable of holding a pilot and four passengers flying at speeds up to 200 miles per hour. The goal of its air taxi network is to replace 45-minute car commutes with a seven-minute air taxi ride, bypassing traffic congestion with zero emissions safely and economically. The company has $710 million in cash and short-term investments and is in the pre-revenue stage.
Partnering with Major Players and Investors
Domestically, Joby has targeted New York and Los Angeles as initial cities for its air taxi service. Joby is partnered with Delta Air Lines Inc. (NYSE: DAL) to integrate its air taxi service with its booking platform to provide air taxi transportation to the airport and back. Delta invested $50 million in October 2022 with the option for an additional $200 million. Joby acquired Elevate from Uber Technologies Inc. (NYSE: UBER) to build a complete software ecosystem, ElevateOS, that customers can use to book air taxis, flights, and Uber rides directly through its mobile app.
Toyota Motor Co. (NYSE: TM) is Joby's largest investor, having already put up $394 million as a supplier of powertrains and actuation components. Toyota committed to invest an additional $500 million in two tranches to support the certification and commercial production of its air taxis.
Locking Down Dubai for Air Taxis
Joby has partnered with the Dubai Road and Transport Authority (RTA) to launch its air taxi services in 2026, with initial operations to commence in 2025. The company has also established four initial vertiport locations in Dubai near Dubai International Airport, Dubai Marina, Downtown Dubai and Palm Jumeirah. It has also acquired the exclusive rights to operate air taxis in Dubai for six years.
Archer Aviation: A Race Towards Air Taxi Launch
Nipping on Joby’s heels is top competitor Archer Aviation Inc. (NYSE: ACHR) and its flagship Midnight eVTOL, which can also carry a pilot and four passengers at speeds up to 150 mph at a range of 100 miles. Auto giant Stellantis N.V. (NYSE: STLA) is the major investor with a $330 million stake. Stellantis is the contract manufacturer, with proceeds directed at constructing a 250,000-square-foot high-volume manufacturing facility in Covington, Georgia. Stellantis agreed to pledge up to an additional $400 million in funding for labor costs to enable Archer to meet its goal of manufacturing 650 eVTOLs annually by 2028. Archer has $051.7 million in cash and cash equivalents.
Archer has secured contracts with the United States Department of Defense worth up to $142 million. They delivered the first Midnight eVTOL to the U.S. Air Force under its Ability Prime program to conduct testing to validate operational and military-specific applications at its Salinas, California facility.
Airline Partners: United, Southwest, Emirates, and ADIO
Not to be outdone, Archer also has airline partners for its air taxi network. Southwest Airlines Inc. (NYSE: LUV) will help Archer develop an air taxi network in California. United Airlines Holdings Inc. (NASDAQ: UAL) has a conditional order of up to $1 billion in air taxis (100 firm and 200 optional) and $500 million in options in its partnership for air taxis. Archer hopes to launch its air taxi service by the end of 2025, initially in New York, San Francisco and Los Angeles. Archer has partnered with the Abu Dhabi Investment Office (ADIO) for commercial eVTOL operations. It’s also the eVTOL aircraft manufacturer for the Emirate’s planned electric air taxi operations.
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