Joby Aviation confirms acquisition of Uber Elevate
Joby Aviation has announced that Uber has agreed to invest $75 million into the company, as part of a broader transaction which involves the acquisition of Uber Elevate.
The financial terms of the acquisition were not disclosed and the transaction is expected to close in early Q1 2021, subject to regulatory review and customary closing conditions.
It ends speculation about a possible deal, which surfaced last week, and follows on from Joby also announcing today (Tuesday) that it has signed a long-term supplier agreement with Toray Advanced Composites.
Under the terms of this week’s deal, both companies have also agreed to integrate their respective services into each other’s apps, enabling seamless integration between ground and air travel for future customers.
This latest investment from Uber is in addition to previously undisclosed $50 million which was made as part of Joby’s Series C financing round in January 2020. It brings Uber’s all-time total investment into Joby to $125 million, while Joby Aviation’s total funding, including previous rounds, is now at $820 million.
JoeBen Bevirt, Founder and CEO of Joby Aviation, said: “We were proud to partner with Uber Elevate last year and we’re even prouder to be welcoming them into the Joby team today, while deepening our cooperation with Uber.
“The team at Uber Elevate has not only played an important role in our industry, they have also developed a remarkable set of software tools that build on more than a decade of experience enabling on-demand mobility.
“These tools and new team members will be invaluable to us as we accelerate our plans for commercial launch.”
Established in 2016, Uber Elevate has played an important role in laying the groundwork for the aerial ridesharing market by bringing together regulators, civic leaders, real estate developers and technology companies around a shared vision for the future of air travel.
Their software tools enabling market selection, demand simulation and multi-modal operations are at the center of their work, and form the basis of this future-focused deal.
Dara Khosrowshahi, CEO, of Uber, added: “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’re excited for their transformational mobility solution to become available to the millions of customers who rely on our platform.”
Joby’s aircraft will form part of its affordable, quiet and clean transportation service, using its eVTOL aircraft which it has spent the last decade developing. With a range of up to 150 miles and a top speed of 200 mph, the company says its vehicle and service has the potential to make a significant difference to the lives of travellers.