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Air taxi startup Joby intends to enter the stock market

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Air taxi start-up Joby Aviation plans to make its technology available by 2023 Description video: Joby Aviation, an electric passenger aircraft developer, is buying Uber’s air taxi unit. Joby Aviation executive chairman Paul Sciarra joins ‘Closing Bell’ to discuss its […]

Air taxi start-up Joby Aviation plans to make its technology available by 2023

Description video:
Joby Aviation, an electric passenger aircraft developer, is buying Uber’s air taxi unit. Joby Aviation executive chairman Paul Sciarra joins ‘Closing Bell’ to discuss its future plans. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi \n\nThe air taxi business is at least a couple of years from taking off, but it’s already seeing consolidation among start-ups. California-based Joby Aviation, which is developing all-electric vertical takeoff and landing aircraft, is acquiring Uber Elevate, the aerial ride-hailing division of Uber.\n\nThe move will allow Joby to use Uber’s app to offer air taxi rides when the company’s aircraft eventually enters service, which could be as soon as 2023. While terms of the transaction were not released, Uber has agreed to invest $75 million in Joby Aviation. Earlier this year, Uber invested $50 million in Joby as part of the company’s Series C financing round.\n\n“We were proud to partner with Uber Elevate last year and we’re even prouder to be welcoming them into the Joby team today,” JoeBen Bevirt, founder and CEO of Joby Aviation, said in a release announcing the deal.\n\nFor Uber, the transaction comes one day after selling its autonomous-driving division known as the Advanced Technologies Group to Aurora, a self-driving car start-up.\n\n“Aurora is going to know exactly what to build, what are the routes, what are the skills that the driver needs to learn in order to go after the largest segment of the market and essentially build that technology in the simplest way,” Uber CEO Dara Khosrowshahi told CNBC’s “Squawk Box.”\n\nParting with the Advanced Technologies Group and Uber Elevate will allow the ride-hailing giant to save hundreds of millions of dollars that would have been required over the next several years to develop autonomous ride-hailing and urban air taxi services.\n\nFor Joby Aviation, incorporating Uber Elevate could help the company achieve its goal of offering short rides in urban areas with vertical takeoff and landing aircraft. Joby’s aircraft operating in conjunction with Uber’s ride-hailing app could offer customers a seamless way to use ride-hailing services and air taxis in a single trip. \n\n“These tools and new team members will be invaluable to us as we accelerate our plans for commercial launch,” Bevirt said in a company release.\n\nOf course, Joby Aviation is still far from taking off. The company has built and is testing an all-electric aircraft that can carry four passengers and a pilot up to 150 miles at a top speed of 200 mph. Joby is regularly conducting test flights, but the aircraft has yet to be certified by the FAA. Separately, Joby has not set pricing for an air taxi trip, which will be an indication of whether air taxis truly take off with the masses.\n\n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\n\nTurn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.\n\nThe News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast \n \nConnect with CNBC News Online\nGet the latest news: http://www.cnbc.com/\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\n\nhttps://www.cnbc.com/select/best-credit-cards/ \n\n#CNBC\n#CNBCTV

Air taxi startup Joby intends to enter the stock market

Electric passenger helicopter developer Joby Aero Inc is looking into a $ 5 billion merger with a purchasing company, sources told Reuters..

Air taxi startup Joby intends to enter the stock market

Sources said Joby hired investment banks to spark interest from so-called Special Purpose Acquisition Companies (SPACs) regarding a potential deal.

Reuters sources asked to remain anonymous because discussions are confidential. Joby declined to comment.

Joby is developing a zero-emission, all-electric vertical take-off helicopter to be deployed as an air taxi service no earlier than 2023. Last month, the Santa Cruz, California-based company agreed to take over the Elevate Uber Technologies Inc. flying taxi project. In turn, Uber acquired a stake in Joby as part of a related deal.

Joby has raised more than $ 800 million in private funding since its founding in 2009, and was valued at $ 2.6 billion in 2020, according to PitchBook, which tracks private fundraising. Joby’s supporters include Toyota Motor Corp and Intel Corp..

SPAC is a shell company that raises funds through an initial public offering (IPO) to acquire a private company, which then goes public through a merger. For the acquired company, the merger is an alternative way to go public compared to a traditional IPO.

SPAC emerged last year as one of the most popular investment vehicles on Wall Street.

The deal for Joby was to follow another deal with SPAC in the sector. Air taxi company Blade Urban Air Mobility last month agreed to merge with Blade, Experience Investment Corp, which saw shares rise 50%.