🚗 Carmakers bankroll "flying taxis"

Plus: CES begins | Thursday, January 05, 2023

Open in app View in browser     Axios What's Next By Joann Muller, Jennifer A. Kingson and Alex Fitzpatrick · Jan 05, 2023 "Flying taxi" startups are getting a big boost from automakers, Joann reports today, in an emerging relationship that could help bring about the future of aviation. Today's newsletter is 998 words ... 4 minutes.     1 big thing: Carmakers pour millions into "flying taxis" Illustration: Tiffany Herring/Axios   Nobody's putting wings on automobiles, but carmakers have emerged as key partners for a bevy of aviation startups working on electric "air taxis," Joann Muller reports. Why it matters: It's a critical time for the emerging urban air mobility sector. Several leading developers of electric vertical takeoff and landing (eVTOL) aircraft are aiming to get Federal Aviation Administration certification within the next couple of years. But they need capital and manufacturing expertise to bring their aircraft, which look like oversized drones, to market and begin whisking passengers across cities or to the airport. Automakers can help on both counts, while ensuring they remain on the cutting edge of transportation. Driving the news: Stellantis, which makes Jeep and Chrysler vehicles, said yesterday it will manufacture an electric air taxi with Archer Aviation — one of several eVTOL companies nearing commercialization. It also plans to invest $150 million in Archer, following an initial $75 million investment in 2021. Stellantis, which has been providing Archer with engineering expertise, will now help it launch a new manufacturing facility in Covington, Georgia, starting in 2024. The plan is for Stellantis to become the exclusive manufacturer of Archer's newly revealed eVTOL, called Midnight. Details: Midnight, which can carry four passengers plus a pilot, is designed for back-to-back hops of around 20 miles, with approximately 10 minutes of charging between flights. Its first route, starting in 2025, will link a Manhattan heliport to Newark Liberty International Airport, in partnership with United Airlines — also an Archer investor. Archer's "Midnight" eVTOL aircraft. Photo courtesy of Archer Aviation Between the lines: To make air taxis affordable, eVTOL developers need to produce them in large numbers and keep them flying as much as possible. Most plan to scale from making hundreds of aircraft annually to tens of thousands — far more than traditional airplane manufacturers. Carmakers are experts at high-volume production and complex supply chains. They can also learn more about aerodynamics, composites and battery efficiency from their aviation partners. What they're saying: "The partnership here I think really helps considerably de-risk and accelerate Archer's ability to get to market and produce vehicles at scale," Archer co-founder and CEO Adam Goldstein told reporters. Stellantis CEO Carlos Tavares framed the partnership as a hedge against what he considers an existential risk facing automakers. "We are all about freedom of mobility, and I really think sincerely that freedom of mobility is at risk in the Western world," said Tavares, a 41-year auto industry veteran. He pointed to vehicle bans in some cities meant to combat congestion and pollution, as well as safety issues and the rising cost of transportation. The big picture: Stellantis isn't the only carmaker collaborating with budding aviation startups. Toyota is a major investor in Archer rival Joby Aviation, and helped design Joby's pilot manufacturing plant in California. Porsche is partnering with Embraer's Eve Air Mobility to begin mass production of its four-passenger eVTOL aircraft. Hyundai has created its own eVTOL spinoff, Supernal. Honda, which developed its own business jet, also plans to produce an air taxi. Mercedes-Benz parent Daimler has partnered with Germany's Volocopter. Share this story.     2. No drones allowed Illustration: Sarah Grillo/Axios   A cottage industry has emerged to protect businesses, stadiums and other sensitive areas from drone intrusions, Axios' Dan Primack reports. Driving the news: Dedrone, a Virginia-based airspace security startup that's raised over $130 million in venture capital funding, tells Axios exclusively that it's acquired Aerial Armor, a developer of drone detection systems. Dedrone says the deal helps it cover nearly 50% of the U.S. population and that Aerial Armor's radio frequency-based hardware helps it solve some lingering detection problems. What they're saying: "A lot of counter-drone companies are very good with one type of sensor or mitigation, like RF (radio frequency) or radar or acoustics or visual," says Mary-Lou Smulders, Dedrone's chief marketing officer. "We bring all of that into a single solution and use an AI algorithm to determine things like if it's a drone or a bird, [and] where exactly the drone is. We can even do pilot tracking." Share this story.     3. 🗺️ Minimum wage hikes, mapped Data: Economic Policy Institute; Note: Hawaii and Florida increases took effect in October 2022; Map: Kavya Beheraj/Axios Millions of Americans got a raise this week, Axios' Emily Peck reports, as minimum wage increases went into effect in 23 states and Washington, D.C. Why it matters: The biggest factor driving the increases? Inflation. Thirteen states tie their minimum wage rate to the Consumer Price Index. Other states had increases set by legislation or ballot initiatives. The big picture: While the federal wage floor remains stuck at $7.25 an hour, a growing number of states now have minimum wages of at least $15 an hour, including Washington ($15.74), California ($15.50) and Massachusetts ($15). In the coming years, more states will reach $15 an hour, including Connecticut (June 2023), New Jersey (2024) and Illinois (2025). Share this story.     A message from Axios New year, new smarter you     This year, set yourself apart and go further. Smart Brevity can help you sharpen your communication skills and become a better leader: Get your message across quickly Write emails and reports that others want to read Run more productive meetings Start today.     4. 📸 Suit up, it's VR time Photo: Alex Wong/Getty Images   A CES attendee gives a "haptic suit" a whirl during a press preview Tuesday ahead of the main show. The suit, made by bHaptics, uses dozens of tiny motors to deliver "haptic feedback" — think tiny vibrations — that simulate whatever's happening to a player's character in a virtual reality (VR) game. The gloves, meanwhile, do the same for the player's hands, making VR experiences more lifelike. 💬 Alex's thought bubble: CES is like a big tech carnival, and trying out weird gadgets is the best part.     5. One fun thing: EV-palooza The Volkswagen ID.7 in "smart camouflage." Photo courtesy of Volkswagen   A ton of new electric vehicles (EVs) are set to arrive this year, Wired notes, ranging from big trucks to an electric Mini — and everything in between. Why it matters: A wider variety of EVs could entice new converts who haven't found an electric car they like yet. Driving the news: The Tesla Cybertruck, Mini Aceman and VW ID.7 are just some of the new electric models headed to dealerships (or directly to consumers) in 2023. New upstart offerings — such as the DeLorean Alpha5 and Fisker Ocean — are also expected this year. Toyota, meanwhile, has totally revamped the Prius — and while it isn't fully electric, there's a plug-in option that looks like a solid choice for drivers who aren't yet ready to go full electric.     A message from Axios New year, new smarter you     This year, set yourself apart and go further. Smart Brevity can help you sharpen your communication skills and become a better leader: Get your message across quickly Write emails and reports that others want to read Run more productive meetings Start today.   Big thanks to What's Next copy editor Amy Stern. Was this email forwarded to you? Get your daily dose of What's Next by signing up here for our free newsletter. Are you a fan of this email format? Your essential communications — to staff, clients and other stakeholders — can have the same style. 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