On-demand ride provider Uber has invested $75m in Joby Aviation, the US-based developer of a vertical take-off and landing aircraft, through a deal that will involve Joby acquiring its Uber Elevate subsidiary.
Joby is working on an all-electric four-passenger aircraft designed to operate as an airborne urban taxi service capable of flying up to 150 miles on one charge. The Uber deal brought its overall funding to $820m, the company said.
Uber has been working on similar technology but has been spinning off its non-core technology to cut costs, taking $500m in series A funding for its Uber Freight unit and merging its autonomous driving technology subsidiary with Aurora to form a $10bn company.
Uber chief executive Dara Khosrowshahi said: “Advanced air mobility has the potential to be exponentially positive for the environment and future generations.
“This deal allows us to deepen our partnership with Joby, the clear leader in this field, to accelerate the path to market for these technologies. We are excited for their transformational mobility solution to become available to the millions of customers who rely on our platform.”
Uber had previously committed $50m to Joby’s previous round, a $590m series C round that closed in January this year with $394m in funding from carmaker Toyota, which also invested in the round through its Toyota AI Ventures unit.
Semiconductor technology producer Intel and airline operator JetBlue took part in the round through their Intel Capital and JetBlue Technology Ventures units, along with Sparx Group, Capricorn Investment Group, AME Cloud Ventures, Baillie Gifford and Global Oryx.
Intel Capital had already led Joby’s $100m series B round in early 2018, investing with JetBlue Technology Ventures, Toyota AI Ventures, EDBI, Allen & Company, AME Cloud Ventures, Capricorn Investment Group, 8VC and various individuals, after Capricorn led its $30m series A two years earlier.
