The air mobility sector witnessed a significant consolidation yesterday as Joby Aviation completed its acquisition of Blade Air Mobility’s exclusive booking platform. This strategic move, valued at approximately $300 million, marks a pivotal moment in the emerging electric vertical takeoff and landing (eVTOL) industry and signals growing confidence in the future of urban air transportation.
The deal, initially announced in June, transfers Blade’s consumer-facing technology and its coveted network of exclusive passenger terminals to Joby Aviation. Most notably, Joby gains access to Blade’s network of 20 private terminals across the United States, including prime locations in New York and Southern California.
“This acquisition accelerates our path to commercialization by several years,” said JoeBen Bevirt, founder and CEO of Joby Aviation, in a statement released by the company. “Blade’s platform gives us immediate access to high-value routes and a ready-made customer base that aligns perfectly with our vision for urban air mobility.”
For perspective, Joby Aviation has positioned itself as a pioneer in the eVTOL space, developing aircraft that promise to revolutionize urban transportation with zero operational emissions and significantly reduced noise compared to helicopters. The company has already secured crucial certification progress with the Federal Aviation Administration and expects to launch commercial passenger service by 2025.
What makes this acquisition particularly noteworthy is how it addresses one of the most challenging aspects of launching an air taxi service – the ground infrastructure. According to a recent Morgan Stanley research report, vertiport networks represent nearly 30% of the projected investment needed to scale urban air mobility operations.
Blade’s existing terminals, already serving thousands of passengers through helicopter services, provide Joby with ready-made takeoff and landing locations in dense urban areas where securing permits for new infrastructure would otherwise take years.
Rob Wiesenthal, CEO of Blade, emphasized this advantage in his statement: “Our terminal network represents over a decade of relationship building and permitting work. This partnership with Joby ensures these assets will serve as the foundation for the next generation of air mobility.”
Industry analysts view the deal favorably. “This is a textbook example of vertical integration in an emerging industry,” noted Richard Aboulafia, managing director at AeroDynamic Advisory, in a conversation with me last week. “Joby now controls not just the aircraft technology but also the customer-facing platform and physical infrastructure – that’s a significant competitive advantage.”
Financial details reveal Joby paid approximately $300 million for the Blade unit, including $190 million in cash and $110 million in Joby stock. The transaction excludes Blade’s organ transport business, which will continue operating independently.
The Federal Reserve’s recent interest rate cut likely created a more favorable environment for finalizing this deal, as growth-oriented technology companies like Joby typically benefit from lower borrowing costs. According to data from PitchBook, investment in advanced air mobility reached $6.9 billion in 2023, up 15% from the previous year, suggesting growing investor confidence despite broader economic uncertainties.
From a competitive standpoint, this acquisition positions Joby ahead of rivals like Archer Aviation and Lilium, who are still developing their customer-facing operations. Joby now possesses what could be described as a “ready-to-launch” commercial infrastructure.
The integration process will begin immediately, with Blade’s technology team joining Joby to ensure a seamless transition. Current Blade customers will continue to access helicopter services through the existing platform, with eVTOL options to be added once Joby’s aircraft receive final certification.
Looking at broader market implications, this consolidation reflects growing maturity in the urban air mobility sector. What was once dismissed as futuristic speculation is now attracting serious capital and strategic business planning. A recent McKinsey report projects the global advanced air mobility market could reach $115 billion annually by 2035, creating more than 280,000 jobs.
For consumers, the Joby-Blade partnership promises to make air taxi services more accessible. Current helicopter routes operated by Blade, such as the popular Manhattan to JFK Airport service, cost approximately $195 per seat. Industry experts predict eVTOL technology could eventually reduce these prices by 30-40% while offering environmental benefits.
As the industry evolves, regulatory challenges remain. The FAA continues developing certification frameworks for these novel aircraft, while local authorities grapple with noise regulations and airspace management concerns. However, Joby’s strengthened position through this acquisition puts it in a more favorable position to navigate these hurdles.
The completion of this deal represents more than just corporate maneuvering – it’s a significant milestone in the practical realization of urban air mobility. With aircraft technology advancing, infrastructure secured, and customer platforms in place, the long-promised future of electric air taxis appears increasingly tangible.
