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

Joby Aviation said it plans to buy the helicopter rideshare business of Blade Air Mobility for as much as $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 U.S. and Europe, as well as the Blade brand, Joby said in a statement, 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 in a Bloomberg TV interview on Monday.

“With the quiet aircraft we’re 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 U.S. but also in Europe.”

Joby shares advanced as much as 21% Monday to a record in New York. Blade surged as much as 31%, raising its market value to nearly $400 million. The transaction is expected to close in 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, hasn’t reported an annual a profit since it listed. The company’s shares had fallen 10% this year prior to Monday’s announcement, giving it a market value of $309 million.

Backed by Toyota Motor Corp., 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 $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 didn’t rule out further acquisitions by Joby around the world, citing the growing demand for fast transportation amid rising traffic congestion.

Philip and Ludlow write for Bloomberg.