Joby Aviation Raises $500 Million from Toyota for Flying Taxi

06.10.2024 - 01:57 / skift.com / Justin Dawes / Joby Aviation

Joby Aviation just closed the largest single round of funding for a flying taxi startup in years.

The $500 million came from Toyota, which is among multiple major transport companies that want to see flying taxis — essentially modern helicopters — as part of everyday commercial travel.

Among others, Archer Aviation has raised hundreds of millions of dollars this year as it develops its own flying taxis and an airport network in California.

Six travel startups announced fundraises over the last week totaling nearly $540 million.

Joby Aviation, which is developing an electric air taxi for commercial service, has raised $500 million from Toyota Motor Corp.

The first half of the funding is expected to close later this year, and the second is planned to close in 2025.

Toyota has now invested $894 million in Joby. Toyota says its investment aligns with its aim to redefine itself as a “mobility company” and  “realize the dream of air mobility for personal or daily travel.” 

Joby has now raised a total of $2.5 billion in funding, according to Crunchbase. The startup went public in 2021 at a valuation of $4.5 billion through a merger with a special purpose acquisition company.

The California-based company is designing an electric vertical take-off and landing air taxi (eVTOL) with a top speed of 200 miles per hour, a maximum range of 150 miles, and space for a pilot and four passengers.

The company intends that its aircrafts will be used in urban settings as a type of rideshare service, bookable through an app. It says its aircraft would take 7 minutes to travel from downtown Manhattan to JFK Airport. 

Skyports, which raised $110 million earlier this year, is designing a vertiport ahead of plans for Joby to begin air taxi services in Dubai by 2026.

Joby’s latest funding will go toward certification and commercial production of the aircraft. The company in August said that the fourth of five stages in its certification process was more than one-third complete. 

Joby recently finished its third aircraft in pilot production at its facility in California, where Toyota engineers work side-by-side with Joby staff. The company has begun construction on an expanded facility expected to open next year. 

Toyota has also been helping Joby with developing the production processes since 2019. The companies signed an agreement in 2023 that Toyota will supply key components for the production of Joby’s aircraft. 

Air Doctor, an app that connects travelers with health care providers, has raised $20 million in series B funding.

The round was led by aMoon, with participation from Tokio Marine Holdings, Samsung Ventures, Lightspeed Venture Partners, Vintage Investment Partners, Phoenix Insurance, and Munich Re Ventures.

Tel