Uber sells its flying taxi business

The air taxi business is at least a couple of years from taking off, but it’s already seeing consolidation among start-ups. California-based Joby Aviation, which is developing all-electric vertical takeoff and landing aircraft, is acquiring Uber Elevate, the aerial ride-hailing division of Uber.

The move will allow Joby to use Uber’s app to offer air taxi rides when the company’s aircraft eventually enters service, which could be as soon as 2023. While terms of the transaction were not released, Uber has agreed to invest $75 million in Joby Aviation. Earlier this year, Uber invested $50 million in Joby as part of the company’s Series C financing round.