The Electric: One Step Forward for Air Taxis, but a Long Road Ahead

Joby Aviation is likely to have the first certified electric flying taxi in the U.S. Photo: Courtesy Joby

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The flying electric taxi industry has entered the proverbial valley of death: To survive the next few years before any can receive regulatory certification, each startup must have at least $500 million in cash on hand, according to one of the companies. But only two do. This week, we look at the struggle of the flying taxi companies to hang on—and the probability that most will fail.

In recent weeks, the Federal Aviation Administration has taken the first concrete steps toward certifying an electric air taxi company. After a nearly three-year review, the agency this month published the requirements that Joby Aviation must meet to fly paying passengers on its five-seat aircraft.

But Joby, based in Santa Cruz, Calif., is still far from commercial flights. It estimates it won’t win final approval from the FAA before 2024. Hundreds of other air-taxi startups will have to wait longer than that—and it’s not clear many will have the cash to survive.