Uber sells its air taxi business to Joby Aviation

Electric passenger aircraft developer, Joby Aviation, said it would acquire Uber Technologies Inc’s flying taxi unit, Elevate, the second cash-burning business the ride-hailing company has sold off in two days, Reuters reported

Joby did not reveal the terms of the deal but said Uber had agreed to invest an additional $75 million in the Santa Cruz, California-based company, bringing its total investment to $125 million

Since its inception in 2009, Joby has raised more than $720 million in funding, most of it from Toyota Motor Corp

On Monday, Uber announced the sale of its self-driving unit to autonomous vehicle startup Aurora in a move it said would accelerate the company’s goal to achieve profitability

Elevate began in 2016 and its team until earlier this year promised the launch of flying taxi services in Los Angeles, Dallas, and Melbourne in 2023.

On Tuesday, Uber and Joby said they would each integrate the other company’s services into their own app to allow customers to book seamless ground and air transportation in the future.

In January, Uber announced its partnership with Hyundai Motor Co to develop electric air taxis as part of its Elevate programme.