Joby says Blade deal ‘massive accelerant’ in air taxi drive

[NEW YORK] Joby Aviation said that it plans to buy the helicopter rideshare business of Blade Air Mobility for as much as US$125 million in stock or cash as the electric aviation firm seeks to expand its battery-powered air taxis into a ready-made market for its aircraft.

The acquisition encompasses all of Blade’s passenger business, including operations in the US and Europe, as well as the Blade brand, Joby said, confirming an earlier report by Bloomberg.

Blade’s medical division will remain a public company and rebrand, while partnering with Joby on medical transportation.

Blade’s helicopter business will continue to expand, even as Joby works to certify and bring its electrically powered aircraft into commercial service, JoeBen Bevirt, the company’s chief executive officer, said on Monday (Aug 4).

“With the quiet aircraft we are building, we see an explosion in the number of takeoff and landing locations we can operate from,” Bevirt said. “Blade has built an absolutely spectacular business, not just in the US but also in Europe.”

Joby shares advanced as much as 21 per cent on Monday to a record in New York. Blade surged as much as 31 per cent, raising its market value to nearly US$400 million. The transaction is expected to close in the coming weeks, Joby said.

Blade sells per-seat helicopter trips from New York City to nearby airports and resort towns. The company, which went public through a merger with a special purpose acquisition company in 2021, has not reported an annual profit since it listed. The company’s shares had fallen 10 per cent this year prior to Monday’s announcement, giving it a market value of US$309 million.

Backed by Toyota Motor, Joby expects to have five aircraft in one of the final phases of certification next year as it aims to start commercial flights in early 2026. The US$13.6 billion company announced plans last month to double production capacity at its plant in Marina, California, to manufacture as many as 24 aircraft a year.

According to Joby, Blade flew more than 50,000 passengers in 2024 from a network of 12 urban terminals. Joby, which plans to carry its first passengers in Dubai next year, said the purchase will allow it to speed its commercial efforts by using Blade’s existing infrastructure and customer base.

Bevirt did not rule out further acquisitions by Joby around the world, citing the growing demand for fast transportation amid rising traffic congestion. BLOOMBERG