Joby: Vertically Integrated Leader of the eVTOL Era

1. Joby's Business Model: A Vertically Integrated "Flying Uber"

Joby's core product is the Joby S4 all-electric vertical takeoff and landing (eVTOL) aircraft, featuring a unique full-tilt rotor configuration and targeting high-end urban air mobility scenarios with a capacity of one pilot and up to four passengers. With a target range of up to 100 miles on a single charge, a cruising speed of 150-300 km/h, and low noise advantage, this aircraft strategically enters the intercity short-haul connection and intracity efficient travel markets. It differentiates itself from multi-rotor eVTOLs (focused on short-distance sightseeing) and compound-wing models (targeting the mid-range intercity market), thereby establishing a competitive advantage. This high-end positioning not only aligns with the demands of high-frequency, high-value scenarios such as business travel and airport shuttle services but also establishes a foundation for high gross profit margins in subsequent commercial operations—its gross profit margin has remained above 50% since 2024.

Table: Comparison of Product and Technology among Joby Aviation, Archer Aviation, and EHang

Joby does not currently intend to sell these aircraft to independent third parties or individual consumers as a primary business model. Instead, it plans to manufacture, own and operate its aircraft, building a vertically integrated transportation company. To be specific:

A) Direct Operation Services (B2C):

Joby's core objective is to operate its own air taxi network. Through the acquisition of Uber Elevate and integration of its interface into the Uber app, users can directly book routes via the app, with Joby providing end-to-end services from takeoff to landing.

B) Government and Defense Contracts (B2G):

Joby has a strong partnership with the U.S. Department of Defense (DoD), with contracts valued at hundreds of millions of dollars under the Agility Prime program. By providing aircraft and operational services to the U.S. military, Joby secures stable cash flow and a significant volume of flight test data in the early stages of commercialization.

C) Acquisition and Infrastructure Construction:

In 2025, Joby acquired Blade Air Mobility's passenger business, directly obtaining over 50,000 annual passenger trips and terminal facilities in core markets such as New York, achieving seamless " airworthiness certification-to-operation" integration.

Joby believes this vertically-integrated business model will generate the greatest economic returns over time, while providing it with end-to-end control over the customer experience to optimize for customer safety, comfort and value. 

2. Core Competencies Supporting This Model

The barrier to entry for this business model is extremely high, and Joby's competitive advantages are primarily evident in the following three dimensions:

A) Leading Airworthiness Certification Progress

In the U.S., new aircraft designs are required to pass through the rigorous FAA design certification process, known as type certification, before the aircraft can be issued a standard airworthiness certificate to fly in the National Airspace System (“NAS”). This is an exacting process that requires extensive ground and in-flight testing with the FAA. Joby began working with the FAA in 2017, and became the first eVTOL company to receive a signed, stage 4 G-1 certification basis from the FAA in 2020. The G-1 certification basis is an agreement with the FAA that lays out the specific requirements that need to be met so that the aircraft can be certified for commercial operations. Joby is targeting initial passenger operations in 2025 or 2026.

Furthermore, as an industry pioneer, Joby has been deeply involved in establishing eVTOL safety standards. This first-mover advantage grants it significant influence in mitigating regulatory risks.

Figure: Joby moves to the final stage of certification, source: Joby’s 2025 Q3 Shareholder Letter

B) Support from Strategic Industrial Shareholders

Throughout its development, Joby has received strategic support from numerous industrial shareholders. These partners have provided not only financial backing but also substantial assistance in manufacturing, technology development, and market expansion.

• Toyota: As Joby's most important strategic partner and investor, the two parties have collaborated for nearly 7 years. In addition to the $894 million in funding already provided, Toyota also shares its lean production system and supply chain resources with Joby. In 2023, they signed a long-term agreement under which Toyota will supply critical powertrain and drive components for Joby's aircraft.

• Delta Air Lines: In October 2022, Delta Air Lines invested $60 million in Joby, with plans to launch an air taxi service in cities such as New York and Los Angeles, integrating ground and air transportation for 'home-to-airport' travel.

• SK Telecom: In June 2023, South Korean telecommunications company SK Telecom invested $100 million in Joby as part of an expanded partnership. The aim is to introduce Joby's electric air taxi service to the South Korean market, leveraging SK Telecom's technology and market advantages to accelerate the development of urban air mobility.

The support from these industrial shareholders has provided Joby with robust guarantees in capital, manufacturing capabilities, technology development, and market expansion, accelerating the commercialization of its eVTOL aircraft.

C) Global Commercialization Layout

In 2022, Joby signed a multi-year, multi-city cooperation agreement with Delta Air Lines to provide home-to-airport air taxi services.;

In 2024, two aircraft were delivered to the U.S. Department of Defense, and a 561-mile flight test was completed using a hydrogen-electric hybrid prototype, bringing the total number of test aircraft in the fleet to five.

In 2024, a 6-year exclusive right to operate air taxis was secured in Dubai, with plans to deliver aircraft by mid-2025, and passenger operations are projected to begin by late 2025 or early 2026.

In 2024, Joby became the first company to operate electric air taxis as part of South Korea's Urban Air Mobility (UAM) initiative.

In 2025, a partnership was established with Virgin Atlantic to launch electric air taxi services in the UK. Joby plans to enter the Saudi market through entities such as Abdul Latif Jameel, with projected deliveries of up to 200 electric aircraft and related services valued at approximately $1 billion over the next few years.

3. Potential Drivers of Future Revenue Growth

Joby's valuation potential lies not only in aircraft sales, but also in its restructuring of urban transportation.

A) Urban Short-Haul Transportation as An Alternative to Ground Transportation

With increasing urban congestion, Joby is targeting the 10–100-mile one-way commute market (e.g., from Manhattan to Kennedy Airport).

• High-Frequency Revenue: Unlike one-time purchases, the pay-per-mile or per-seat pricing model delivers exceptional customer lifetime value (LTV).

• Efficiency: As pilot training costs decrease (potentially leading to unmanned operation in the future), the cost per mile is expected to match that of premium ride-hailing services, stimulating massive demand.

B) Global Market Expansion

• Dubai and the UAE: Joby has signed an exclusive agreement with the Dubai government, planning to launch operations in 2026. The Middle East's high acceptance of new technologies and strong purchasing power will make it Joby's first overseas profit growth driver. Initially focusing on premium airport shuttle services and intercity commutes, Joby will target high-net-worth individuals with premium pricing. Subsequently, it will lower costs through shared flight models to penetrate the mass mobility market, expecting to take over Blade's existing 50,000+ annual passengers with continued growth.

• Global Hub Cities: Beyond its existing footprint in the U.S., Dubai, and Japan, Joby plans to enter key cities in Europe and other Asia-Pacific regions (e.g., Singapore, Sydney) to leverage market demand differences across regions and achieve revenue complementarity.

C) Scenario Expansion

Beyond core intercity commuting and airport shuttle services, Joby leverages its low-noise advantage to expand into intracity short-haul travel and low-altitude tourism. Concurrently, Joby is also exploring specialized scenarios such as emergency rescue and medical transportation to further expand market space. The combination of demand from diverse scenarios will effectively improve capacity utilization, mitigate demand volatility in any single application, and bolster the stability of revenue growth.

Conclusion

Joby's vertically integrated business model accurately aligns with the core needs of the eVTOL industry in the early commercialization stage--technology validation and operational capability. This business model is firmly supported by its leading airworthiness certification progress, support from industrial shareholders, and global commercialization layout. Over the next 1-2 years, the final approval of FAA type certification and the successful launch of commercial operations in Dubai in 2026 will be critical milestones, transitioning the company from R&D-driven to revenue-driven growth. With the scaling of core scenarios and the diversification of markets and use cases, Joby is well-positioned to become the first to validate the feasibility of the eVTOL business model, initiating a new growth trajectory for air travel.