How Joby And Delta Are Making Flying Taxis A Reality

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The world has dreamed of the day flying cars will become a part of daily life. And despite many attempts, that day hasn't come. But we might not have to wait much longer. Advances in battery and electric propulsion tech have enabled entirely new types of aircraft to take to the skies. Things we once only saw in cartoons, thought of as science fiction, are actually coming to life right before our eyes. Electric propulsion has enabled us to think differently about aircraft design and to develop a new class of aircraft. Startups Joby, Archer, Vertical, Lilium and more are developing eVTOLs, electric vertical takeoff and landing aircraft, with the vision of making air taxis a reality. This new mode of transportation allows us to move into the third dimension and rethink the way our cities operate. The vehicle of the future. The Tesla meets Uber of the air, where we can redefine human mobility. Major airlines have been securing deals and preorders in the hopes that these take off. The eVTOL space is going to fundamentally change how people get to an airport. CNBC got an inside look at Joby Aviation, one of the eVTOL players that has grand ambitions of not only building the aircraft but operating an uber-like air taxi business. The problem in cities is often overcrowded or bottleneck infrastructure. We have an opportunity to help solve that problem by getting people over and above traffic to where they want to go as much as 5 to 10 times faster than driving on the ground. Investment in eVTOL startups has taken off. Last year, $5.8 billion was invested and it is estimated the U.S. Passenger eVTOL market could reach $17.7 billion by 2040. But enormous challenges lie ahead. The future of urban air mobility is still being mapped out by regulators, and Joby must prove its aircraft will be safe for commercial transit. That is one of the biggest hurdles for the eVTOL industry, particularly as it gets into the development and entry into service spaces. The FAA will want to make sure there's a great safety record behind these. We are working with the same level of energy as the industry itself. Innovation can never come at the expense of safety. It has to work hand in hand. Our designs are locked in and we're now in the stages of going through the testing analysis and then moving into the certification. We are very close to making this reality. When I was a child, I dreamt about building an airplane that could take off and land vertically. That was quiet and that was sustainable. The solution to that, in my mind, was electric propulsion. When I was in college in 1993, I worked on it. The challenge was that batteries weren't ready. JoeBen Bevirt went off to study robotics at Stanford. He later founded a robotics company and after that, invented a popular flexible camera tripod called the GorillaPod. Those two successes gave me both the confidence and the financial resources to go back to my childhood dream. In 2009, he founded Joby Aviation in Santa Cruz, California. We started the company in this redwood barn, and it was a really tight-knit group of engineers dedicated to building a new class of aviation company with vertical integration in its DNA. Early on, the focus was on the proof of concept. That went on for the first few years, leading to 2017 when we started flying effectively the aircraft that resembles what we have today. The aircraft you're seeing today began flying in 2019. Our first production intent aircraft will be rolling off our pilot manufacturing line shortly. The company has secured sizable investments from some big names. In 2020, Toyota invested nearly $400 million and is helping the company with manufacturing. They've been able to give us a lot of assistance, even in this stage, in terms of how do we design the right manufacturing facility. It also received a Department of Defense contract for more than $75 million. Since 2016, they provided us access to flight test facilities, restricted airspace, that has significantly accelerated the development of this really exciting new technology. In 2021, the company went public via a SPAC with Reinvent Technology Partners, which is run by LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus. Bringing Joby $1.6 billion. The company manufactures and performs flight tests at a pilot production facility just outside Monterey, in Marina, California. Our pilot manufacturing facility is where we are going to optimize our build rate. And we're also going to build tens of airplanes per year. Unlike an electric car, weight considerations are far more important in an aircraft to maximize range. As a result, the entire airframe is made of composites. Composites are really a combination of composite material and honeycomb pieces. You'll also see at a smaller scale use of metallics, such as 3D printed titanium, as well as some other materials, such as aluminum. Some of the material we're using here and the way we process it, cut it and cure it is really state of the art of what you would see in aviation. Once the parts are manufactured, they go through rigorous inspections. This is one of those inspections that we call nondestructive inspections. And the idea is to leverage this UT robot to actually see through the material and identify any defects. Once we've done with that, if we have a clean check, then we can proceed into the assembly part of the manufacturing process. We have the Toyota team here working with us on a daily basis, helping us with their automotive expertise so that we can really design the right footprint, use the right equipment and right processes that really allow us to scale from this facility to the much larger one. This aircraft is one of our prototype airplanes that we are using throughout the development process. All electric aircraft designed from the get go. Intended for five occupants, one being the pilot, and then for passengers with plenty of luggage space. Each of these propulsion units is articulated to allow us to take off vertically like a helicopter, then go through a transition phase and then go wing born and fly like an airplane. We've demonstrated in the past that we were able to exceed 200 miles per hour, 150 miles on the range. But in typical use, you'll see it used more for flights within 50 miles or less. Each of our six propulsors is powered by two separate motors with separate inverters powering each motor and separate battery packs powering each inverter. Since the aircraft will be operating in urban environments, noise was a key concern the team designed for. The acoustic signature is core to being able to land where our customers want to go. And it's not just the level of the noise, it's also the quality of the noise, a noise that blends into the background. The company said a majority of the aircraft and its components were developed in-house. The batteries were also developed by Joby, with a team of ex-Tesla engineers. Our battery team, they were responsible for developing the battery packs for the Tesla Model S, the Tesla model 3 and the Tesla Model X. Joby uses a simulator to develop and test the software that powers the aircraft. We check that the software actually is doing what it's supposed to do. So we check that the avionics do things that they're supposed to do. We check that the control laws or the way the airplane flies and handles and maneuvers does exactly what it's supposed to do. The simulator is also crucial for training. So we are going to be bringing hundreds and thousands of pilots through this type of simulator in the future. The important aspect is that the simulator is very close to the real aircraft and actually flies exactly like the real aircraft. Here we go, we're on our way up. I'm actually making no inputs at all right now. And what you can see is the aircraft is in a perfectly steady hover. This isn't me. I'm not doing anything. This is the aircraft. If you sat here in a helicopter, and I am a helicopter pilot, or a jump jet like a Harrier, you would be working on the controls, multiple inputs, like an input every second, in order to keep it steady and keep it in this location. But I'm actually doing nothing. And this is one of the key elements that makes our aircraft easy to teach. Joby's vision doesn't stop at just developing the aircraft. It's also the operations, it's the customer experience, the vertiports, we're building a whole ecosystem. In 2020, the company acquired Uber Elevate, Uber's air taxi division, along with a $75 million investment. That team is providing all of the technology to deliver on the multimodal experience, as well as coordinating the pilots, the maintenance, the customer service staff. Just recently, Joby inked an exclusive five-year partnership with Delta Airlines. The carrier is investing $60 million with plans to use its air taxis to transport passengers to and from airports. It's been a multi-year journey and our teams have been talking to different people in the industry. We are investing $60 Million into Joby. We have the ability to grow that investment over time. We will have a board seat. Delta has invested billions of dollars into airport infrastructure and we're leveraging that infrastructure and the relationships that Delta is built to deliver vertiports at the airport. Delta tends to be one of the more conservative airlines, and their investments certainly stood out to me as very compelling and their sort of support for this eVTOL industry. And I think the fact that each airline is individually partnering with a different OEM tells you that they don't want to be left out if this does, no pun intended, take off. Joby envisions the experience being all-inclusive for every leg of the trip. It starts with booking a flight in either Joby's app or one of its partners, such as Delta or Uber. You can use our app or the Uber app to book a seamless, multimodal journey from door to door. Our goal is once a customer picks their flight, they can then add on a Joby connection itinerary to that and have all of that transaction happen on the same experience on Delta.com or the Fly Delta app. Joby says the cost of these trips will be comparable to what one might pay for a premium Uber. Our goal is to make this equivalent to ridesharing today, similar cost per mile for every seat that we're delivering. The cost of the actual eVTOL, the average selling prices, they're anywhere from $3 to $5 million depending on the manufacturer. Whether they'll make money on that? That's a question that remains to be seen. So that'll answer how much the consumer has to end up paying and how much the operator is willing to subsidize. The company is targeting late 2024 for its launch, but hasn't revealed where it plans to offer the service first. We certainly think of this business as one that's applicable for large, medium and small sized cities, both here in the US and abroad. Our approach is going to be to go deeper into a smaller number of cities as opposed to going wide. That's the way that we can show the utility of this service and really drive down cost on the other side. It's also looking at eventually servicing rural communities. We've got an opportunity to get people to where they want to go there by basically roads in the sky that don't exist on the ground. But before Joby can begin ferrying passengers through the skies, it has some major hurdles to overcome. The aerospace industry is heavily regulated and the Federal Aviation Administration has strict standards for aircraft used in commercial operations. Commercial aerospace, despite proven aircraft and long certification processes that range anywhere from 5 to 10 years for each aircraft model, still have major setbacks. We have to certify the vehicle or the aircraft itself. Second, we have to certify the operation. That is, how will the operators, the pilots, operate for something that takes off like a helicopter, translate to forward flight, lands like helicopter. And then thirdly, how do we ensure that we safely integrate this new technology into our national airspace system. We began certification with the FAA in 2018 in a formal way and received our Stage 4 G1 issue paper in May of 2020. We recently announced the completion of our Part 135 Operating Certificate. eVTOLs are especially tricky since it's the introduction of an entirely new aircraft. Because you have a novel, new aircraft that will operate in both modes, we want to make sure that we get that right from a pilot's training. And then as we gain more and more experience and we've gained more time in this, we can continue to evolve our regulatory framework there. And the general public will need convincing that these are safe. We talk about safety of ten to the minus nine. That's something happens one in a billion time. This is what the public has come to expect every time they get aboard an aircraft. We want them to feel as safe on an eVTOL as they are on a commercial airliner. And that's what we are building toward and that's what the industry must adhere to. Also critical to its plan is gaining buy in within the urban environments it hopes to operate. We're interfacing across multiple different areas of the FAA, along with municipal governments, incorporating the feedback from communities. And that is why we're so focused on the acoustic signature. We want communities to want our vertiports. And when it does receive all the necessary approvals for the aircraft, it still has the uphill battle of scaling manufacturing. One report claims Joby cannot hit its ambitious 2024 target. This facility has the capacity for tens of aircraft per year. The next step is to select our site for our phase one production facility that will allow us to scale to hundreds of aircraft per year. Joby also has a lot of competition, with an estimated 200 companies worldwide developing vertical takeoff and landing aircraft. Archer Aviation, another California based startup, is also in the testing phase. It went public last year through a SPAC and received funding from Stellantis and United Airlines. Earlier this year, it received a $10 million deposit from United for 100 of its aircraft. American Airlines has also thrown its hat into the ring, backing UK based Vertical Aerospace. But given the difficulty and expense of building a successful aerospace company, some predict consolidation. I think the share prices say it all. The share prices have not been great since launch. So there definitely will be consolidation as development timelines could be prolonged and liquidity might be needed. And once these aircraft are operating, price will be the determining factor in whether these ultimately succeed. What really has this industry take off is getting that price cost equation lower. I would certainly take a $100 ride to JFK and save an hour of my time. And of course, higher adoption, as we've seen with Uber, as we've seen with companies like Wheels Up, have more demand come in. I dream of that day where myself and my kids are going to be getting on a Joby aircraft from an airport somewhere and traveling downtown. And we're doing that, not only with ease, but also by leaving a clean footprint across the board. I want to be one of the first passengers out there. We're still in very early innings when it comes to the long arc of the business. We need to stay extremely focused every day and making sure we're putting one foot in front of the other so that we can get to the next chapter of the story and the chapter that comes after that. If there's any skeptics out there, just watch our execution, watch our results. We're going to continue to deliver. We are so excited about what this next stage of aviation is going to bring.
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Channel: CNBC
Views: 241,776
Rating: undefined out of 5
Keywords: CNBC, business, news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, Stock market news, stocks, aviation, transportation, Delta, Joby, flight, airlines, planes, flyingcars, future, technology, electric, EVs, electricvehicles, electric air taxi, joby aviation, flying taxis, real flying car, joby aviation air taxi, uber elevate, flying cars, flying taxi
Id: SIdc-BaD0T0
Channel Id: undefined
Length: 17min 10sec (1030 seconds)
Published: Sun Nov 06 2022
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