(Oil & Gas 360) – Traffic jams and hailing Ubers could be things of the past should air taxi developers deliver on promises that are enticing enough that Toyota is investing in another round of the technology.
The Japanese carmaker is investing half a billion dollars in Joby, a California-based producer of electric vehicle takeoff and landing craft (eVOTL) that has been in business since 2009.
The capital infusion from one of the world’s best-performing auto manufacturers comes atop Toyota’s nearly $400 million investment into Joby in 2020. The proceeds will go toward more commercial production, technical refinements, and work to meet Federal Aviation Administration certification requirements.
Toyota’s investment could start paying off as early as next year based on an agreement to start inaugural commercial flights in Dubai. The company successfully executed an exhibition flight over New York City last November.
Quick and widespread adaptation of eVOTLs could profoundly affect oil and gas demand, given that ground transportation accounts for 45-50 percent of global oil consumption, and aviation accounts for approximately another ten percent.
Slumping electric vehicle demand could also face additional pressures with the advent of another electric vehicle transportation option.
With projections of the world population reaching nine to ten billion people by 2050 and further estimates showing that two-thirds of those people are expected to live in urban environments, small local electric air transport presents a solution to the air quality, traffic jams, and decrepit and deteriorating infrastructure problems many cities face today.
Joby faces considerable competition from other companies looking to gain a first-mover advantage in the area of what the industry terms urban air mobility solutions.
Several are publicly traded (Archer Aviation), are from outside the U.S. (Lilium in Germany) and have been in the business for over ten years. Further competition comes from Volocopter, Lilium, eHang, Vertical AeroSpace, AutoFlight and others.
Joby has enjoyed technical support from Toyota as well, ranging from manufacturing and production guidance. Toyota also has a long-term agreement with the company to supply powertrain and other mechanical and engineering expertise.
Joby’s acquisition of Uber’s air taxi division in 2020 also included $375 million from Uber to complete the merger. The company went public the next year via a special purpose acquisition company (SPAC).
Joby’s stock (NYSE: JOBY) is down a little over six percent for the year.
By Jim Felton for oilandgas360.com
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