Key Points
Uber has worked closely with Joby over the past six years.
The two companies will launch their first aerial ride-hailing service in Dubai this year.
Over the past decade, electric vertical take-off and landing (eVTOL) aircraft have evolved from fanciful concept designs into commercially viable short-range aircraft. One of the first movers in this nascent market is Joby Aviation(NYSE: JOBY), which produces the S4 eVTOL.
The S4 carries a single pilot and four passengers, travels up to 100 miles on a single charge, and reaches a maximum speed of 200 miles per hour. It can travel faster than most of its competitors -- including Archer Aviation's(NYSE: ACHR) Midnight eVTOL -- because it uses tilt-rotor propellers, which alternate between lifting and cruising modes. The Midnight uses separate propellers for lifting and cruising, which increases its overall weight and drag.
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Image source: Joby Aviation.
Joby has already attracted prominent investors and customers, including Toyota and Delta Air Lines(NYSE: DAL). However, its most important partner is arguably Uber(NYSE: UBER), which is using Joby's S4 eVTOLs to launch its new air taxi services. Let's see how Uber and Joby Aviation could kick-start the eVTOL revolution in the near future.
Why do Joby and Uber need each other?
Uber's relationship with Joby started just over six years ago. In January 2020, Uber invested $50 million in Joby's Series C financing round. In December 2020, Uber sold its Elevate aerial ride-hailing business to Joby and invested another $75 million in the eVTOL maker.
At the time, Elevate was researching potential air taxi routes, developing software for on-demand flights, and testing out a premium helicopter-hailing service in New York City. Uber divested its Elevate unit as part of a broader effort to streamline its business, and Joby acquired it to accelerate the development of its own aerial ride-hailing network.
Last August, Joby acquired Blade's passenger helicopter-hailing service to expand that fledgling platform. Shortly afterwards, Uber integrated Blade's helicopter rides into its ride-hailing app.
Uber, which served 202 million monthly active platform customers (MAPCs) at the end of 2025, plans to tether itself to Joby's top air taxi partners -- which already include Delta, Virgin Atlantic, and All Nippon Airways. In late February, Uber and Joby officially launched Uber Air, which aims to launch its first eVTOL flights in Dubai later this year. That would mark a significant commercial milestone for both companies.
In the U.S., the Federal Aviation Administration (FAA) hasn't fully approved Joby's S4, Archer's Midnight, and other eVTOLs for commercial flights yet. However, Joby expects the FAA to approve its first commercial flights this year -- and Delta has already been working with Joby and Uber to launch their first air taxi routes in New York and Los Angeles. Uber has even secured a spot as the official air taxi provider for the 2028 L.A. Olympics.
But is it the right time to buy Joby's stock?
From 2025 to 2027, analysts expect Joby's revenue to nearly quadruple, from $53 million to $210 million, as it ramps up production and Uber launches its first air taxi routes. But with a market cap of $9.9 billion, it's already valued at 47 times its 2027 sales.
That premium valuation might be justified if the FAA finally approves its first commercial flights and its partners rapidly expand their air taxi networks. However, it could quickly lose its luster if those approvals or flights are delayed, or it struggles to produce enough eVTOLs to meet that demand. It's also expected to remain unprofitable for the foreseeable future, and it will likely continue to dilute its investors through extensive secondary offerings.
I wouldn't rush to buy Joby's stock in this frothy market, but I wouldn't ignore it either. It's clearly establishing an early mover's advantage in the eVTOL market, which could grow exponentially over the next decade as these greener aircraft gradually replace conventional helicopters.
Should you buy stock in Joby Aviation right now?
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
