What is urban air mobility (UAM)?

Urban air mobility refers to transportation systems that use small, electric aircraft to move people and goods within urban areas. These aircraft, often called electric vertical takeoff and landing (eVTOL) vehicles or "air taxis," can take off and land like helicopters but aim to be quieter, safer, and more environmentally friendly. They're designed to reduce traffic congestion by utilizing the airspace above cities for short-distance travel.

What are eVTOL aircraft?

eVTOL stands for "electric vertical takeoff and landing" aircraft. These are battery-powered aircraft that can take off and land vertically like helicopters, but often use multiple rotors or propellers (similar to drones) instead of a single large rotor. They're designed to be quieter, more efficient, and environmentally friendlier than traditional helicopters, making them suitable for urban transportation in densely populated areas.

Why is Joby Aviation's Dubai flight significant?

Joby Aviation's successful piloted flights in Dubai represent a crucial milestone for the entire urban air mobility industry. These flights demonstrated that eVTOL technology is viable in real-world conditions, moving beyond controlled test environments. This validation reduces investment risk, accelerates the timeline for commercial operations, and increases confidence that electric air taxis will become a reality. For investors, it signals the industry is progressing from experimental technology to revenue-generating businesses.

How do battery stocks relate to air mobility?

Battery technology is critical for electric air taxis, as these aircraft need lightweight, high-capacity, safe batteries to achieve practical flight times and ranges. Companies developing advanced batteries, particularly solid-state batteries (like QuantumScape and Solid Power), are working on solutions that could significantly improve the performance of electric aircraft. Better batteries mean longer flight times, increased safety, and ultimately more commercially viable air taxi services.

When will air taxis be available for commercial use?

While timelines vary by company and region, several major eVTOL manufacturers are targeting commercial operations beginning between 2024-2026. Regulatory approval remains a significant hurdle, as aviation authorities like the FAA and EASA are still developing certification frameworks for these new aircraft types. Initial services will likely be limited to specific routes in select cities that have partnered with eVTOL companies, with broader adoption expanding over the following years.

17 handpicked stocks

Urban Air Mobility Takes Off

Electric air taxis are moving from science fiction to reality. This collection features companies pioneering the future of urban transportation, carefully selected by our investment analysts to give you exposure to this exciting emerging industry.

Han Tan | Market Analyst

Updated 2 days ago | Published at July 1