Joby Aviation, the leader in air taxis, is increasing its investment in low-altitude racing tracks, with plans to expand its business territory to Dubai next year

According to the financial news app Zhitong Finance, on Wednesday Eastern Time, the global leader in the air taxi industry, Joby Aviation Inc (JOBY.US), plans to launch a commercial air taxi flight team in Dubai next year. The company's CEO stated that they plan to introduce their battery-powered air taxi commercial service in the Dubai market starting from the end of next year, expanding their business focus from the low-altitude economy track in the United States to the Middle East region.

This electric air taxi startup is one of the world's top electric vertical take-off and landing aircraft manufacturers. These aircraft are designed to provide passengers with efficient short-distance air travel services, significantly saving time and energy compared to ground commuting. The company had previously indicated that it may be ready to start commercial operations as early as 2025, although certification work by the Federal Aviation Administration in the United States and other countries' aviation regulatory agencies is still ongoing.

"Our goal is to launch commercially in Dubai," CEO JoeBen Bevirt told analysts during the company's second-quarter earnings conference call. "We expect to announce the launch of our first infrastructure project there later this year, as well as the first test flight mission in the first half of next year, and commercialization in the second half of the year."

As of Wednesday afternoon New York time, the headquarters of Joby Aviation, the air taxi leader based in Santa Cruz, California, saw its stock price rise over 2% in after-hours trading to $5.01. However, the company's stock price has fallen more than 26% since the beginning of this year.

In terms of the latest financial results, Joby Aviation reported a GAAP loss of 18 cents per share for the second quarter, in line with Wall Street analysts' expectations. The startup had cash, cash equivalents, and marketable securities of $825 million at the end of the second quarter of 2024, a decrease of approximately $98.9 million.

The company emphasized that it completed four out of five important certification stages in numerous testing programs submitted and accepted in the second quarter, and expects progress in the next stage to accelerate throughout the remainder of 2024.

Joby Aviation, headquartered in California, USA, is dedicated to developing all-electric electric vertical take-off and landing (eVTOL) aircraft for urban air transportation and shared mobility services. The company's main product is a four-seat electric air taxi aircraft designed for air taxi services, featuring vertical take-off and landing capabilities, a flight speed of up to 200 miles per hour, and a range of approximately 100 miles. This aircraft has very low noise levels, making it almost imperceptible and ideal for use in urban environments.

Joby Aviation aims to revolutionize traditional urban transportation through air taxi services, significantly improving transportation efficiency. Air taxis are a core part of the globally promoted "low-altitude economy," which involves efficient passenger and cargo transportation activities in low-altitude airspace, typically involving new types of aircraft such as drones and eVTOL. Joby's development plans are closely related to this low-altitude concept, as they are developing air taxi networks for cities and regions that will greatly drive economic development activities in low-altitude airspace Mordor Intelligence's forecast report shows that the market size of the air taxi market is expected to be around $1.41 billion in 2024, and is projected to reach approximately $4.04 billion by 2029, with a high compound annual growth rate of 23% during the forecast period (2024-2029).

Mordor Intelligence stated that the main driving factors for the demand in the air taxi market are people's need for alternative transportation methods and the increasingly severe traffic congestion in mega-cities. As the population of mega-cities continues to grow, traditional ground transportation faces many limitations, making air taxis a promising, efficient, and convenient solution for short-distance travel and tourism around large cities.

The agency predicts a significant growth in the air taxi system market in the coming years, with major companies in the global aerospace industry expected to invest in developing air taxi systems. Various initiatives related to government and sustainable smart city projects may further promote this growth trend, leading to the large-scale commercial deployment of air taxi systems during the forecast period