Joby Aviation Acquires Blade Passenger Business to Boost Urban Air Mobility

Joby Aviation Acquires Blade’s Passenger Business: Strategic Leap in Urban Air Mobility

Joby Aviation’s agreement to acquire Blade Air Mobility’s passenger business for up to $125 million marks a watershed moment for the urban air mobility (UAM) sector. This transaction unites Joby’s advanced electric vertical take-off and landing (eVTOL) technology with Blade’s established passenger infrastructure, creating a vertically integrated platform poised to accelerate the commercialization of air taxi services in major metropolitan markets. The acquisition also signals a strategic realignment, with Blade shifting its focus to medical logistics under the new Strata Critical Medical brand. As the urban air mobility industry matures, the deal illustrates the growing importance of operational scale, infrastructure, and regulatory momentum in shaping the next generation of transportation.

The significance of this acquisition extends beyond the financial terms. By combining Joby’s technological prowess and manufacturing pipeline with Blade’s customer base, terminals, and operational expertise, both companies are positioning themselves to capitalize on the increasing demand for sustainable, efficient urban transport. The move also highlights the broader trend of convergence between aviation technology firms and mobility service providers, a trend that is expected to accelerate as eVTOL certification and regulatory frameworks advance.

This article explores the background of both companies, details of the acquisition, recent developments in the UAM sector, expert perspectives, and the global context that frames this landmark deal. Through a neutral and fact-based analysis, we aim to provide a comprehensive understanding of the implications for industry stakeholders and the future of urban air mobility.

Background

Joby Aviation: Pioneering Electric Air Taxis

Founded in 2009 by JoeBen Bevirt, Joby Aviation has become one of the most prominent names in the eVTOL space. The company’s flagship aircraft is designed to carry four passengers and a pilot, offering speeds of up to 200 mph and a focus on quiet, emissions-free operation. Joby’s vision is to make air taxi services accessible in congested urban environments, reducing travel times and carbon footprints. The company went public in 2021 via a SPAC merger, attracting investment from notable partnerships such as Toyota and Uber, and has established collaborations with the U.S. Air Force for dual-use applications of its technology.

Joby’s approach emphasizes both manufacturing and operational excellence. The company is actively pursuing FAA certification for its eVTOL aircraft, targeting commercial launch in 2025. A key part of Joby’s strategy is to secure exclusive operating rights in major markets, exemplified by its agreement to provide air taxi services in Dubai until 2032.

With a strong focus on integrating software and hardware, Joby has developed the ElevateOS platform to manage scheduling, routing, and customer experience. This digital backbone is expected to play a central role as Joby scales its operations globally.

Blade Air Mobility: From Helicopter Taxis to Medical Logistics

Blade Air Mobility was founded in 2014 by Rob Wiesenthal, introducing an asset-light, on-demand helicopter and jet service in urban corridors such as New York City and the Hamptons. Blade’s business model centered on aggregating demand through a digital platform, while leveraging third-party operators for aircraft and pilots. Over time, Blade expanded into airport transfers and international routes, establishing a recognizable brand in urban mobility.

A significant pivot occurred in 2021 with Blade’s acquisition of Trinity Air Medical, which marked its entry into the medical logistics space. By 2024, Blade’s MediMobility division was responsible for over half of the company’s revenue, specializing in the rapid transport of human organs for transplantation. This shift reflected both the operational challenges and the economic realities of scaling passenger helicopter services in dense urban areas.

Blade’s asset-light approach allowed it to adapt quickly to changes in the market, but also meant that significant capital investments in infrastructure were avoided. The sale of its passenger division to Joby is a strategic move to focus on the growing medical logistics sector, which will continue as Strata Critical Medical.

Market Growth and Regulatory Momentum

The urban air mobility market is experiencing rapid growth, driven by technological advances in electric propulsion, battery systems, and digital infrastructure. According to industry research, the global UAM market is projected to surpass $10 billion by 2029, with increasing interest from both private investors and public agencies.

Regulatory support has played a crucial role in accelerating adoption. In 2025, an executive order was enacted in the United States to promote eVTOL deployment for cargo, medical, and rural access, reflecting a broader governmental commitment to the sector.

The integration of Blade’s passenger operations with Joby’s eVTOL technology and software is emblematic of the industry’s evolution toward seamless, multimodal mobility solutions.

Key Facts and Data

Acquisition Terms and Structure

Joby Aviation will acquire Blade’s passenger business for up to $125 million. The deal includes $35 million in holdbacks contingent on performance milestones and employee retention, ensuring a smooth transition of operational expertise and customer relationships.

Assets transferred in the deal encompass Blade’s U.S. and European passenger operations, including 12 terminals in key markets such as JFK, Newark, and downtown Manhattan. The acquisition also covers Blade’s brand and customer base, providing Joby with a ready-made infrastructure for rapid expansion.

Blade’s medical logistics division is excluded from the sale and will continue to operate as Strata Critical Medical, maintaining its public listing and focusing on organ transport and other critical missions.

Operational Impact and Passenger Volume

The acquisition immediately grants Joby access to Blade’s extensive passenger network. According to Joby, Blade transported over 50,000 passengers in 2024. However, Axios reports that the figure may be as high as 100,000 passengers across more than 30,000 flights, indicating a robust demand for short-haul air mobility. The discrepancy in figures likely stems from differing definitions of passenger categories or reporting periods.

Joby’s integration of Blade’s lounges and terminals is expected to reduce the capital expenditure required for new vertiport construction, accelerating time-to-market in key urban areas.

In addition to commercial gains, Joby’s partnership with L3Harris to develop hybrid gas-turbine VTOLs for military applications provides a new avenue for revenue diversification. Flight testing is scheduled to begin in late 2025, with demonstrations expected in 2026.

“Blade has spent 10 years building best-in-class infrastructure… We see that as a launchpad for helping us accelerate the scale-out of our passenger service.”, JoeBen Bevirt, CEO of Joby Aviation

Strategic Synergies and Software Integration

A central pillar of the acquisition is the integration of Joby’s ElevateOS software into Blade’s operations. This platform will streamline scheduling, routing, and customer interactions, enhancing efficiency and reducing operational overhead.

Blade’s medical division, now Strata, will continue to partner with Joby for organ transport missions. The use of quieter, electric aircraft is expected to improve outcomes for time-sensitive medical logistics by expanding operational windows and reducing community disruption.

The combined entity is well-positioned to benefit from regulatory incentives and first-mover advantages in both passenger and medical air mobility.

Recent Developments

Dubai Launch and Regulatory Progress

Joby’s acquisition of Blade’s passenger operations is closely aligned with its preparations to launch air taxi services in Dubai. The company has secured exclusive rights to operate eVTOL taxis in the city until 2032, and recently completed piloted demonstration flights to validate its technology and operational procedures.

On the regulatory front, Joby is actively pursuing FAA Part 135 certification for its eVTOL aircraft, with full approval targeted for 2025. This certification is a prerequisite for commercial passenger operations in the United States and is expected to serve as a model for other jurisdictions.

The company’s collaboration with L3Harris on hybrid VTOLs for defense applications underscores the versatility of Joby’s platform and the growing interest from government agencies in next-generation aviation technologies.

Industry and Analyst Perspectives

Industry analysts have highlighted the strategic logic of the deal. McKinsey & Company projects that eVTOLs will revolutionize urban transport by 2030, with noise reduction and sustainability as key drivers.

Bendeveran, an industry commentator, has noted that Blade’s medical logistics business was undervalued relative to its peers, and that the partnership with Joby could unlock new growth opportunities.

Executives from both companies have emphasized the importance of infrastructure and operational readiness in scaling air mobility services, with Joby’s CEO describing Dubai as a “launchpad for a global revolution.”

“Quiet electric aircraft will be the great unlock to build more lanes,” enabling expansion beyond traditional heliports., Rob Wiesenthal, Founder of Blade Air Mobility

Competitive Landscape and Global Context

The UAM sector is characterized by intense competition, with players such as Archer Aviation, Lilium, and Volocopter developing their own eVTOL platforms and service models. Joby’s acquisition of Blade’s passenger business differentiates it through immediate access to operational scale and customer loyalty.

Government support, as seen in Dubai’s exclusive rights agreement and the U.S. executive order on eVTOLs, is fostering a favorable environment for rapid industry growth.

As the sector matures, collaborations between technology developers, infrastructure owners, and service providers will become increasingly important for achieving commercial viability and regulatory compliance.

Conclusion

Joby Aviation’s acquisition of Blade’s passenger business represents a strategic convergence of technology and operational expertise in the urban air mobility sector. By leveraging Blade’s established infrastructure and customer relationships, Joby is well-positioned to accelerate the rollout of its eVTOL services in key markets, while also expanding into high-value medical logistics through its partnership with Strata.

As regulatory frameworks evolve and public acceptance of urban air mobility grows, integrated platforms like the one formed by Joby and Blade will play a central role in shaping the future of transportation. The deal serves as a blueprint for other industry participants seeking to combine innovation with operational scale, and underscores the importance of infrastructure, partnerships, and regulatory alignment in achieving sustainable growth.

FAQ

What is the value of the Joby-Blade acquisition?
Joby Aviation is acquiring Blade’s passenger business for up to $125 million, with $35 million contingent on performance milestones and employee retention.

What happens to Blade’s medical division?
Blade’s medical logistics division will continue as Strata Critical Medical, remaining a public entity and partnering with Joby for future eVTOL deployments.

How many passengers did Blade serve in 2024?
According to Joby, Blade transported over 50,000 passengers in 2024. Axios reports a higher figure of approximately 100,000 passengers across more than 30,000 flights.

When will Joby’s eVTOLs be certified?
Joby is targeting full FAA certification for its eVTOL aircraft by 2025.

What is the significance of the Dubai launch?
Joby has secured exclusive rights to operate air taxi services in Dubai until 2032, making it a key launch market for its eVTOL platform.

Sources:
Joby IR