United Airlines is doubling down on electric air taxis with a new $15 million investment in Embraer-backed startup Eve Air Mobility.
The carrier has agreed to buy 200 four-seat electric aircraft with options for 200 more. The first deliveries are expected as early as 2026.
|UAL||UNITED AIRLINES HOLDINGS INC.||42.03||-0.62||-1.45%|
|EVEX||EVE HOLDING INC||8.26||+0.07||+0.85%|
"Our agreement with Eve highlights our confidence in the urban air mobility market and serves as another important benchmark toward our goal of net zero carbon emissions by 2050 – without using traditional offsets," United Airlines Ventures President Michael Leskinen said in a statement. "Together, we believe our suite of clean energy technologies will revolutionize air travel as we know it and serve as the catalyst for the aviation industry to move toward a sustainable future."
Eve's electric vertical takeoff and landing (eVTOL) aircraft have a range of 60 miles, leverage conventional fixed wings, rotors and pushers and can reduce noise levels by 90% compared to the current conventional aircraft. Eve also has access to Embraer's service centers, parts warehouses and field service technicians.
"While it’s still early to be speculating on exact pricing, Eve anticipates that as the market grows that a typical trip will be similar to that of a rideshare," a United spokesperson told FOX Business.
Shares of Eve Air Mobility jumped nearly 9% in premarket trading on Thursday following the announcement.
United's latest investment comes after the company put down a $10 million deposit for 100 electric air taxis from Archer Aviation.
Last year, United agreed to order up to 200 of Archer's flying taxis to transport travelers to the airport quickly, safely and ideally with minimal environmental impact. The deal is worth approximately $1 billion, with an option to purchase an additional $500 million worth of aircraft.
Archer recently completed a preliminary design review for its production aircraft, which it is aiming to launch as early as 2024. Once up and running, Archer’s aircraft will be expected to transport up to four United customers at a time as far as 60 miles at speeds as fast as 150 mph.