Joby Aviation buys Blade’s air taxi business in $125 million deal for medical services

Joby Aviation has announced its purchase of Blade Air Mobility's urban air taxi business for up to $125 million, as reported by Axios, marking a significant step toward replacing traditional helicopters with quieter electric air taxis for medical transportation. This acquisition gives Joby immediate access to a loyal customer base and existing infrastructure, helping the company avoid the high costs of building new landing spots and finding new customers from scratch.

The deal represents the next chapter in aviation technology, where electric air taxis will allow passengers to fly quietly over traffic jams when traveling to airports or across busy cities. Companies like Joby and Archer Aviation are working hard to get approval from aviation authorities for their new electric aircraft that take off and land vertically, similar to large drones that can carry four passengers plus a pilot. According to Axios, President Trump recently signed an order to advance this technology, announcing plans for at least five test projects for different uses, including cargo delivery, medical emergencies, and connecting rural areas.

Blade's stock price jumped as much as 30 percent early Monday morning after news of the deal broke, according to Yahoo Finance reporting on the market reaction. Joby will not take over Blade's medical transport business, which will become a separate public company called Strata Critical Medical. Joby's own stock also rose more than 5 percent following the announcement. Blade operates helicopter rides on a per-seat basis from several landing spots around New York City, taking passengers to nearby destinations like the Hamptons or local airports such as Newark Liberty International Airport.

The company flew more than 50,000 passengers in 2024 from 12 different terminals, though Yahoo Finance notes that Blade has struggled financially since going public in 2021 and has not reported an annual profit. The acquisition allows Blade founder Rob Wiesenthal to remain in charge of the passenger operations as the company becomes fully owned by Joby.

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 The Wall Street Journal highlighted how this deal positions Joby for commercial flights as the company works toward getting its electric aircraft approved for regular use. Joby CEO JoeBen Bevirt pointed to recent government support and positive signals from regulators worldwide as reasons for optimism about the business. Some aircraft testing is already approved in Dubai, and Bevirt believes the Trump administration's recent executive order might speed up the timeline for starting commercial operations in the United States.

The sale allows Blade to focus more on its core medical logistics business, which brought in nearly $36 million of the company's roughly $54 million in first-quarter revenue. Current pricing for Blade's passenger service is similar to Uber's premium Black service, but Wiesenthal expects prices to decrease over time as Joby's technology requires less maintenance. The Wall Street Journal reported that the deal should close within the coming weeks, with Blade's medical division getting a new stock ticker symbol to be announced later.