Uber sells its ‘flying taxi’ business to startup Joby

A day after unloading its self-driving vehicle unit, Uber Technologies Inc.

Silicon Valley startup Joby Aviation said it would acquire Uber Elevate, and that Uber has agreed to invest 75 75 million as part of the deal. Joby told Uber UBR,
It had previously invested an undisclosed $ 50 million as part of a funding round that closed in January. The cost of the acquisition has not been disclosed. The deal is expected to close in the first quarter of 2021.

Joby said it will work in partnership with Uber, integrating services into each other’s applications.

“Advanced air mobility is likely to remain positive for the environment and for future generations,” Dara Khosroshahi, Uber’s chief executive, said in a statement. “This deal allows us to deepen our partnership with Jobie, a clear leader in this field, to accelerate our path to the market for these technologies.”

Joby was founded in 2010, raised about 8 820 million and is valued at about 6 2.6 billion, according to Pitchbook. It focuses on building all-electric, four-passenger, vertical-takeoff-and-landing aircraft and aims to roll out the “affordable” air taxi service by 2023.

On Monday, Uber struck a similar deal, selling its self-driving unit to Isc Rora Innovation for an undisclosed amount with an investment of 400 400 million and a 26% stake in the startup.

Getting out of two moonshot businesses, bigger than Uber’s books, will carry the weight of losing money. The company is looking for ways to reduce costs as epidemic controls have hit its ride-hailing business hard, although there is little difference in its fast-growing Uber It’s delivery business.

Uber recently lost just under 1 billion in the third quarter, but it still expects to be profitable by the end of 2021.

Uber shares are up 78% year-over-year compared to the SPX of the S&P 500,
+ 0.28%
About 15% benefit.