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Uber has descended from heaven to earth: the company sold the division for the development of air taxi
09.12.2021 [12:59],
Gennady Detinich

Yesterday, Uber agreed to sell its latest promising project, Elevate’s vertical takeoff and landing electric air taxi business. Uber Elevate business will go to Joby Aviation, also creating a new type of urban air transport. Additionally, Uber invests $ 75 million in Joby Aviation and will take part of the shares of a promising company.

Image Source: ROBYN BECK / AFP / Getty Images

The acquisition of Elevate, its related development and team of specialists is expected to help Joby Aviation to deliver a commercial product faster. Previously, Joby Aviation planned to organize an urban air taxi service in the United States by 2023. Buying Elevate can accelerate the availability of such services. By the way, Uber secretly invested in Joby Aviation back in January of this year, investing $ 50 million in it in the next round of fundraising series C. Joby Aviation has raised $ 820 million to date, of which $ 125 million belongs to Uber.

Under the deal, which is expected to close in early 2021, the two parent companies have agreed to integrate their respective services into each other’s apps. “This deal allows us to deepen our partnership with Joby, the clear leader in this field, to accelerate time to market for these technologies,” said Uber CEO Dara Khosrowshahi.

It should be said that a year ago, Uber was full of plans and developed almost the entire range of promising services from self-driving taxis, food delivery by drones and ending with the design of air taxi. But the COVID-19 pandemic and the company’s goal of maximum profitability forced to get rid of all side developments, of which the sale of the Elevate division was the last nail in the coffin of independent futuristic Uber projects. We emphasize that they are independent, since the company retained shares in the divisions given away during the “sale 2021”.

Air Taxi Project Joby Aviation

So, in the spring, Uber invested $ 170 million in the startup Lime, selling it its Jump division. The latter was engaged in electric scooter rental services – this is the so-called micromobility. Earlier this week, Uber signed an agreement to sell its autonomous vehicle division with Aurora Innovation, in which it will invest $ 400 million in Aurora and in return will receive a 26% stake in the company. And in October, Uber sold a stake in Freight’s truck rental business to a group of investors for $ 500 million, but retained a controlling stake in it. All of these deals led to Uber becoming a passenger transportation and food delivery company.