Aerospace manufacturer Boeing invested $450m in US-based flying taxi developer Wisk yesterday, highlighting the interest from the industry in commercially viable vertical take-off and landing (VTOL) vehicles.
Founded in 2010 as Zee Aero, Wisk is working on automated electric VTOL (eVTOL) echnology and is currently in the process of building its sixth generation machine. Zee Aero was acquired by Kitty Hawk Corporation in 2017 and Wisk was formed as a joint venture with Boeing in 2019.
In contrast to other companies working on VTOL technology, Wisk is going straight to automated vehicles as opposed to human-operated taxis. Automation, the logic goes, is the best way for the industry to scale, as it means operating costs will be lower along with the resulting prices.
According to IDTechEx, the market for eVTOL aircraft is expected to reach $14.7bn by 2041, bolstered by the involvement of the world’s largest aerospace companies in the sector, including Boeing, Airbus and Embraer.
Major aerospace suppliers such as General Electric, Rolls-Royce and Raytheon also have active investments in eVTOL developers, and the sector has also seen a strong trend of reverse mergers over the past year.
Joby, an air taxi developer that counts air carrier Jet Blue, chipmaker Intel, automotive manufacturer Toyota and ride hailing service Uber as investors, carried out a $6.6bn reverse merger on the New York Stock Exchange in February with special purpose acquisition company (SPAC) Reinvent Technology Partners.
UK-based eVTOL aircraft developer Vertical Aerospace went public in New York in a $2.2bn reverse takeover with Broadstone Acquisition Corp in June backed by financing from investors including corporates American Airlines, Avolon, Honeywell, Rolls-Royce, Standard Industries and Microsoft.
Another company in the space, Archer Aviation, struck its own SPAC merger agreement in early 2021 with Atlas Crest Investment Corp, at a $3.8bn valuation.
Wisk CEO Gary Gysin said: “Wisk is extremely well-positioned to deliver on our long-term strategy and commitment to safe, everyday flight for everyone. We are incredibly fortunate to have Boeing as not only an investor but a strategic partner, which provides us with access to a breadth of resources, industry-leading expertise, a global reach, extensive certification experience and more.
“As we enter this next stage of our growth, this additional funding provides us with capital while allowing us to remain focused on our core business and our number one priority, safety.”
Photo courtesy of Wisk Aero LLC.
