Toyota has revealed plans to contribute $500 million (€453 million) towards Joby Aviation, increasing its holdings in the aerial taxi start-up that is setting its sights on starting commercial services by next year. The financial boost by Toyota, Joby’s largest investors, is part of a wider strategy to support the American group in commodifying and producing its aerial taxis.
Joby’s founder and CEO, JoeBen Bevirt, expressed his enthusiasm about establishing a manufacturing partnership with Toyota to significantly expand this innovative transportation model. The start-up was established in 2009 and made its debut on the New York Stock Exchange in 2021. Based in California, Joby is one of several emerging companies and traditional aerospace firms seeking to revolutionise ‘urban air mobility’ by leveraging ‘electric vertical take-off and landing’ (eVTOL) aircraft.
As the complexity of aircraft development becomes more evident, several start-ups have had to resort to obtaining additional funds from investors and postponing certification deadlines. Other impediments include the construction of necessary infrastructure and obtaining public approval. Nevertheless, Joby is one of the more financially secure entities in the industry as it had already raised over $2 billion prior to Toyota’s most recent contribution.
Moreover, the company’s aircraft is the first eVTOL that has had its certification plans approved by the US Federal Aviation Administration, and it’s now journeying towards obtaining full approval. The company is concentrating on launching its first commercial service in Dubai in the coming year. Currently, a pilot production line is active in Marina, California, with ambitions to boost production capacity to one vehicle per month by the end of the year.
Bevirt stated that Toyota’s new investment, which will be divided into two parts, continues a near-seven-year collaboration between the two firms. This will bring Toyota’s total financial commitment close to $900 million. This investment will elevate Toyota’s holdings in Joby, which also has support from asset manager Baillie Gifford, to over 20 per cent.