Joby Aviation, an air taxi company based in California, is flying to new heights with its latest acquisition. The futuristic transportation company plans to acquire Blade Air Mobility’s commercial passenger division. Blade has become renowned for its helicopter flights to New York City airports and vacation destinations such as the Hamptons.

On August 1, 2025, the parties entered into an Equity Purchase Agreement pursuant to which Joby will purchase the passenger segment of Blade Air Mobility for approximately $125 million. Joby may elect to pay the purchase price in cash or stock. A portion of the purchase price is contingent upon Blade’s future financial performance. There is an EBITDA earn-out component of the purchase price, whereby Joby will pay up to $17.5 million in additional consideration if Blade achieves certain EBITDA metrics. There is also a retention earn-out of up to $17.5 million that will become payable to Blade if certain key employees are retained for at least 1.5 years after the closing date.

In connection with entering into an acquisition agreement, Joby and Blade entered into a Restrictive Covenant Agreement, pursuant to which Blade agreed to certain non-compete and non-solicitation provisions.

Joby aspires to have its all-electric, vertical take-off and landing (“eVTOL”) technology available around the world. The company’s air taxis can transport a pilot and up to four passengers quietly and efficiently. The eVOTL aircraft can operate at up to 200 mph and carry up to 1,000 pounds. Joby is particularly focused on providing commercial air taxi services in urban locations, offering a potential alternative to driving in busy cities.

Joby was founded in 2009 by JoeBen Bevirit. For many years, the company focused on research and development of its eVOTL technology. As a result, Joby has been operating at a loss and has had negative cash flows every year thus far. It became a public company listed on the New York Stock Exchange (NYSE) in 2021 via a merger with a special purpose acquisition vehicle (SPAC).

Based in New York City, Blade provides helicopter and air transportation services. The company currently has two business segments: the passenger segment and the medical segment. Similar to Joby, Blade also went public in 2021 via a SPAC merger. It is listed on the Nasdaq stock market.

The acquisition will provide Joby with Blade’s U.S. and Europe passenger flight operations as well as Blade’s airport lounges and terminals. Once the deal closes, Blade’s main focus will be its medical transportation business. Blade’s medical business will be renamed Strata Critical Medical following the closing of the transaction.

Close coordination with the U.S. Federal Aviation Administration (FAA) and other government regulators around the world will be critical to the future of Joby’s business. Joby has established good relationships with regulators and is on a path to establishing commercial operations. In the United States, the aerospace company is in the process of certifying its aircraft with the FAA. Joby’s goal is to provide commercial air taxi services in 2026.