Uber to Sell Flying Taxi Business

Uber will  reportedly sell its flying taxi business to secretive startup Joby Aviation.

Uber announced on Wednesday that is in advanced talks to sell its Uber Elevate unit to Joby Aviation. That news comes as Uber CEO Dara Khosrowshahi attempts to push his company closer to profitability, which includes the sale of the money-losing parts of the business.

Last year, the firm starting offering helicopter trips from Manhattan to John F. Kennedy International Airport. The trips were meant to offer a taste of what the experience would be like to use the Uber app to summon a flight rather than a car ride, according to News reportes.

On other hand, in 2016 when the firm first announced its interest in launching a network of electric flying taxis. Under the firm’s calculations, a two-hour, 12-minute slog from San Francisco to San Jose would become a breezy 15 minutes by flying car. A two-hour, 10-minute battle through São Paulo gridlock would be transformed into an 18-minute pleasure ride.

Later, Uber announced a net loss of $1.1 billion during the third quarter (Q3) of the year, according to figures released after the US stock exchange closed.

Shares of the company dropped as much as 4% as the company reported third-quarter revenue that missed Wall Street’s expectations, but picked up during the company’s earnings call when the CEO said there are early signs its core ride-hailing business would fully recover from the COVID- 19 pandemic.

Mobility adjusted net revenue, including the firm’s core Rides business, declined 52% year-over-year to $1.37 billion for the third quarter, while delivery adjusted net revenue, including from Uber Eats, grew 190% year-over-year to $1.14 billion. Adjusted net revenue is a non-GAAP measurement that measures revenue minus driver incentives, driver referral payments, and the cost of reimbursing drivers for COVID- 19 protection equipment.