Joby Stock Gains Momentum with $125M Acquisition of Blade Air Mobility Business

Joby Aviation, Inc. (NYSE: JOBY), an electric air taxi company based in Santa Cruz, California, has announced a definitive agreement to acquire Blade Air Mobility’s (NASDAQ: BLDE) urban air mobility passenger business. The acquisition, valued at up to $125 million, supports Joby’s goal of accelerating commercial operations, particularly in key urban markets within the United States and Europe, including New York City. This move provides Joby with terminal and lounge infrastructure that is essential for its expansion and commercialization efforts. With access to Blade’s established infrastructure and a loyal customer base, Joby intends to integrate Blade’s operational expertise and customer experience into its operations. Blade, which flew over 50,000 passengers last year through a network of 12 urban terminals globally, is known for its established bases at major locations including John F. Kennedy International Airport, Newark Liberty Airport, the West Side of Manhattan, the East Side of Manhattan, and Wall Street. Blade’s passenger operations will continue under its current management and will be a wholly-owned subsidiary of Joby, with Rob Wiesenthal staying at the helm as CEO.

The strategic acquisition positions Joby to build on Blade’s achievements and adapt its passenger base from conventional helicopters to Joby’s next-generation electric aircraft. This transition aligns with Joby’s vision to lead the urban air mobility market by leveraging Blade’s infrastructure without large additional infrastructure investments. Joby founder and CEO JoeBen Bevirt stated that this acquisition is pivotal in launching Joby’s commercial operations in Dubai next year, marking a significant step in the company’s global expansion strategy.

In addition, Joby will partner with Blade’s organ transport division, named Strata Critical Medical, to become the preferred VTOL partner in medical transportation. This collaboration is set to enhance Joby’s involvement in high-value, mission-critical air medical services, demonstrating additional use cases for Joby’s aircraft beyond passenger transport.

The terms of the agreement include a payment from Joby to Blade in stock or cash, valued up to $125 million, subject to customary indemnity provisions. This sum includes $35 million in holdbacks tied to specific performance and employee retention milestones. The transaction is anticipated to close shortly, pending standard closing conditions.

This deal underscores Joby’s commitment to advancing the urban air mobility sector while enhancing its operational readiness and customer experience. The planned integration of ElevateOS, Joby’s proprietary software, will support Blade in optimizing its operational efficacy, subsequently improving service delivery to passengers. Blade’s CEO Rob Wiesenthal expressed confidence in the acquisition, highlighting Joby’s progress from successful demonstration flights in New York and Dubai to certification efforts. He emphasized that Joby’s acquisition supports Blade’s original mission to democratize air travel by transitioning from traditional rotorcraft to environmentally friendly electric aircraft.

Joby’s ongoing certification process with the Federal Aviation Administration (FAA) is crucial to its timeline for launching commercial air taxi services. The acquisition strengthens Joby’s position in urban air mobility as regulatory compliance progresses. As this strategic integration unfolds, Joby is poised to significantly influence the future of urban transportation, making innovative commuting solutions like air taxis a part of everyday life.

In summary, Joby Aviation's acquisition of Blade's passenger business marks a significant milestone in expediting its commercial operations and extending its reach into vital urban markets. This strategic move is designed to leverage Blade’s infrastructure, passenger experience, and operational history while preparing for the upcoming passenger service launch in Dubai. The acquisition reflects Joby’s commitment to revolutionizing urban transportation through quiet, sustainable electric air taxis as part of its long-term growth strategy.