Toyota is going all in on electric air taxis, investing another $500 million into Joby Aviation. The latest investment brings Toyota’s total stake in the California-based startup to $894 million, including a $394 million boost back in 2020. The deal also deepens their collaboration on manufacturing as Joby works to bring its electric air taxis to market.

• The funds will help Joby complete the FAA’s Type 2 certification process, now in its fourth of five stages, and support the commercial production of its electric vertical takeoff and landing (eVTOL) aircraft.
• Joby targets a 2025 launch for its commercial air taxi service.
• The company recently rolled out its third aircraft from its pilot production line in Marina, California, and started expanding its facility to more than double its manufacturing capacity.

Urban Tech: Toyota’s investment in Joby signals that the world’s largest automaker by sales, sees air taxis as a viable form of future transportation. 

According to Axios, Toyota will own more than 20% of Joby after the second round of funding is invested in 2025. Founded in 2009 by JoeBen Bevirt, Joby has spent over a decade developing, certifying, and producing an eVTOL aircraft for use as a commercial air taxi in cities.

“Today’s investment builds on nearly seven years of collaboration between our companies,” Bevirt said in a statement. “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.”

Joby aims to reach a production capacity of one eVTOL per month by the end of 2024 while continuing its manufacturing expansion. The company plans to launch a public service that will allow users to book an air taxi through its app or Uber’s app, similar to hailing a car today.

Joby’s Electric Air Taxi Strategy 

In 2020, Joby acquired Uber’s air taxi spinoff Elevate. At the time Uber also invested $75 million into the startup. A year later, Joby became a public company through a merger with Reinvent Technology Partners led by LinkedIn co-founder Reid Hoffman. 

This has left Joby with a unique position compared to other electric air taxi startups. On top of massive financial investments, Toyota has also shared with Joby the automaker’s Toyota Production System which covers the complete planning and development manufacturing process for Toyota’s vehicles. 

Now, Toyota engineers work side by side with Joby engineers in California. Toyota will also provide a long-term supply of powertrain and actuation components for Joby aircraft.