Cars Aren't Good Enough: Toyota Invests $500 Million in Electric Air Taxi Startup

Toyota is reportedly doubling down on its investment in electric air taxi developer Joby Aviation with a new $500 million funding round. The automobile giant apparently believes the future of travel in cities is via small aircraft zipping between skyscrapers.

TechCrunch reports that Toyota has announced it is investing an additional $500 million into California-based electric air taxi startup Joby Aviation. This brings Toyota’s total investment in Joby to $894 million, following a prior $394 million capital injection in 2020. The new funds will be used to help Joby complete the lengthy Type 2 certification process with the FAA and support the commercial production of its electric vertical takeoff and landing (eVTOL) aircraft.

Joby Aviation, founded in 2009 by JoeBen Bevirt, has been working for over a decade to develop and produce an eVTOL aircraft designed to operate as a commercial air taxi service in urban areas. The company is currently in the fourth of five stages of the FAA’s type certification process and aims to launch its commercial service in 2025.

In addition to the funding, Toyota has been sharing its expertise in manufacturing and production with Joby since 2019. Engineers from Toyota have been working alongside the Joby team providing insights from the renowned Toyota Production System, which covers planning, manufacturing methods, and tooling design. In 2023, the two companies signed a long-term agreement for Toyota to supply key powertrain and actuation components for the production of Joby’s aircraft.

Joby Aviation has made significant progress in recent years, becoming more visible in the eVTOL industry. In 2020, the company acquired Uber’s air taxi division, Elevate, as part of a complex deal that included a $75 million investment from Uber. The following year, Joby announced plans to go public through a merger with Reinvent Technology Partners, a special purpose acquisition company (SPAC) led by notorious leftist and LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus.

JoeBen Bevirt, founder and CEO of Joby Aviation, expressed his gratitude for Toyota’s support, stating, “Today’s investment builds on nearly seven years of collaboration between our companies. The knowledge and support shared by Toyota has been instrumental in Joby’s success and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel.”