The market for electric vertical take-off and landing (eVTOL) aircraft has seen significant growth in recent years, with Joby Aviation being one of the first players to enter the market with their S4 eVTOL. This aircraft can carry a pilot and four passengers, travel up to 100 miles on a single charge, and reach a maximum speed of 200 miles per hour. Its unique tilt-rotor propellers allow for faster travel compared to its competitors, such as Archer Aviation’s Midnight eVTOL which uses separate propellers for lifting and cruising.

Joby Aviation has attracted notable investors and customers, including Toyota and Delta Air Lines. However, their most important partnership is with Uber, who plans to use Joby’s eVTOLs for their air taxi services. With this partnership, Uber and Joby could potentially kick-start the eVTOL revolution in the near future.

The relationship between Uber and Joby began in 2015 when Uber invested $50 million in Joby’s Series C financing round. In 2020, Uber sold its Elevate aerial ride-hailing business to Joby and invested an additional $75 million in the company. This was part of Uber’s efforts to streamline its business, while Joby saw it as an opportunity to accelerate the development of their own aerial ride-hailing network. Later on, Joby acquired Blade’s passenger helicopter-hailing service and integrated it into Uber’s ride-hailing app.

With 202 million monthly active platform customers, Uber plans to collaborate with Joby’s top air taxi partners, including Delta, Virgin Atlantic, and All Nippon Airways. In February, Uber and Joby officially launched Uber Air, with plans to launch their first eVTOL flights in Dubai later this year. This would be a significant milestone for both companies.

However, the Federal Aviation Administration (FAA) has yet to fully approve Joby’s S4 and other eVTOLs for commercial flights in the US. Joby expects this approval to come this year, with Delta already working with Joby and Uber to launch air taxi routes in New York and Los Angeles. Uber has also secured a spot as the official air taxi provider for the 2028 L. A. Olympics.

While analysts predict Joby’s revenue to quadruple from 2025 to 2027, with a market cap of $9. 9 billion, the company is already valued at 47 times its 2027 sales. This premium valuation may be justified if the FAA approves commercial flights and their partners expand their air taxi networks quickly. However, delays in approvals or production could impact the company’s growth potential. Additionally, Joby is expected to remain unprofitable for the foreseeable future and will continue to dilute its investors through secondary offerings.

In conclusion, the eVTOL market is expected to grow exponentially in the coming years, and Joby Aviation has established an early mover’s advantage.