The electric vertical take-off and landing (eVTOL) company Joby Aviation (JOBY 2.25%) and Uber recently announced they would begin offering air taxis in Dubai later this year, marking the potential launch of a new mode of transportation and a new market.
Joby is one of the leading companies that has designed an all-electric aircraft that can reach speeds of up to 200 miles per hour, with a range of around 100 miles on a single charge, and can carry up to four passengers at a time, giving these vehicles the potential to turn traffic-filled hour-long trips into minutes.
Image source: Getty Images.
Through its partnership with Uber, customers can book a Joby aircraft trip in the Uber app. According to Business Insider, Joby and Uber will have four landing spots, or "vertiports," for people to grab a Joby aircraft. They will include Dubai International Airport, a mall, a hotel on Palm Jumeirah, and the American University of Dubai.
In its release, Joby also said it has now begun the final stage of certification with the U.S. Federal Aviation Administration to eventually launch flights in the U.S., although no timeline was specified. Should you buy the stock?
The path to commercial short-range flights feels closer, but it's still a bet
Joby and another eVTOL competitor, Archer Aviation, are both incredibly exciting companies. I mean, this is the sort of futuristic technology one would see in movies depicting what the world would look like one day. The path to actually launching these flights feels closer than ever before. I also suspect that U.S. regulators will be watching how things go in Dubai.
However, it is important to remember that, while Joby has tremendous potential, it could still take longer than expected to reach mass commercialization, and many obstacles could slow progress. So while the news is great, I wouldn't take it at face value until the aircrafts are actually in the sky and serving customers.
NYSE: JOBY
Key Data Points
Another issue is that Joby's stock has already been driven up by hype, with a market cap of $9.8 billion as of this writing. In 2025, the company generated over $53 million in revenue and lost close to $930 million.
Clearly, this is a bet on a late-stage start-up being one of the first entrants into a new market and quickly grabbing market share. I agree the company is exciting, and I think it's OK to buy a little bit of the stock.
But I wouldn't make it a core position right now. A better buy right now could be Uber, since it is partnering with all these new autonomous-driving companies, as well as companies like Joby providing new means of transportation.
