The Sky
Winging it: will flying taxis ever have lift off?
Last updated: 12 Jan 2023
Market 101
From urban commuters stuck in traffic to rural areas left entirely disconnected, could today’s infrastructure woes be solved by looking upwards? A crop of madly ambitious startups think so. They’re imagining a future where drones will not only inspect hard-to-reach sites but drop off anything from medical goods to your latest Vinted order, while flying taxis will take us from one block — or one city — to the next.
Thanks to advancements in batteries, autonomous driving systems and satellite communications, what once appeared outlandish is now decidedly less so. European regulators have paved the way for more widespread drone usage starting this year and laid out certification requirements for flying taxis. Still, takeoff will be gradual, with wildly different timelines for each use case. In seeking to conquer our skies, startups and their investors are going to feel some turbulence.
Early stage market map
Key facts
2,000
daily number of commercial drone deliveries globally in early 20221
$90bn
projected revenue of the “urban air mobility” sector by 20502
2024
when Germany’s Volocopter plans to launch its flying taxis commercially
Trends to watch
Ready for takeoff?
Drones started by offering financial benefits based on incremental improvements in speed and convenience. Many of them needed their own pilot in line of sight to operate them.
But now startups are developing drones with better automation that can fly beyond the line of sight, making for a much more compelling business case.
Don't forget launchpads
Once ready for takeoff, startups will rely on supporting infrastructure to integrate their vehicles into daily life.
This means that startups both need to perfect their technologies, and make sure they nudge governments to create enough landing pads and charging stations.
Can battery planes take on more luggage?
Flying taxis using lithium-ion batteries are so far limited to two-seater aircrafts flying no more than 50km. For intercity flights, designing for minimal energy consumption will be crucial, and other kinds of batteries may become increasingly important.
Similarly, battery-powered drones are so far struggling to carry much more than 5kg.
Flight risk
Flying trials have already been carried out successfully in Europe and beyond, for both drone deliveries and taxis.
The real challenge will be to establish a system in which all these criss-crossing flights can take place safely, complete with guidelines and standards on the operation of and communication with non-drone aerial vehicles.
Startups tracked by Sifted
Sifted take
Drones and flying taxis still face plenty of technological limitations, but these won’t be the sticking point when it comes to long-term adoption. Rather, startups need to win over public opinion by using trials and demonstrations as showcases of convenience, safety — and eventually, normality.
Rising stars
Designs, manufactures, sells and operates ground, air and digital infrastructure for flying taxis and drones. Founder Ricky Sandhu was previously one of the youngest partners at architecture firm Foster + Partners.
Round
Grant
Valuation
Undisclosed
Date
2022
Size
€2,500,000
Is developing a new aircraft based on a proprietary propulsion technology, with 80% lower carbon emissions than conventional helicopters. Its cofounders previously worked together at Airbus in senior positions.
Round
Seed
Valuation
Undisclosed
Date
2021
Size
€10,000,000
Uses drones to inspect power grids before analysing the data using machine learning and computer vision.
Round
Seed
Valuation
Undisclosed
Date
2021
Size
€2,000,000
Early stage startups to watch
Airflight
Drones
Various applications
€3m
€2m
-
Ascendance Flight Technologies
Aircrafts
€10m
€10m
-
Connect Robotics
Drones
Delivery
€95
€18
-
Dronamics
Drones
Delivery
€850k
€550k
-
Drone Defence
Drone detection
€550k
€550k
-
Dronetag
Components
Drones
€580k
€580k
-
Fusion Engineering
Drones
€2.2m
€500k
-
GLOBHE
Drones
Data insights
€3m
€1.8m
-
KrattWorks
Drones
Data insights
€250k
€450k
-
Meshmerize
Infrastructure
Connectivity
€1m
€1m
€5.1m
Monopulse
Drones
Various applications
-
-
-
Perceptual Robotics
Drones
Inspections
€3.4m
€2.4m
-
Skyqraft
Drones
Inspections
€2.6m
€2m
-
Thrust - Intelligent UAV Systems
Drones
Inspections
€350k
€250k
-
Tinamu Labs
Drones
Inspections
€2.3m
€2m
-
Urban-Air Port
Infrastructure
Vertiports
€5.5m
€2.5m
-
Zuri
Aircrafts
€2.4m
€1.3m
-
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Has developed a two-seater, 65km-range aircraft for intracity trips, with which it has successfully completed trial flights
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Is developing a seven-seater jet for intercity trips, with a range of 250km
Sources
Research reports
2 The high-flying industry: Urban Air Mobility takes off | November 2020 | Roland Berger
News articles
1 Drones take to the sky, potentially disrupting last-mile delivery | January 2023 | McKinsey
Up in the air: How do consumers view advanced air mobility? | June 2021 | McKinsey
Investors piling into flying taxi businesses are in for a bumpy ride | April 2021 | Sifted
To take off, flying vehicles first need places to land | August 2020 | McKinsey
Hydrogen is the only way to make flying cars viable says Urban Aeronautics founder | July 2020 | Sifted
Cargo drones: The future of parcel delivery | February 2020 | Roland Berger
Drone technology: 4 reasons it hasn't been successful yet | July 2019 | Sifted
Unmanned air mobility: The challenges ahead for drone infrastructure | February 2019 | McKinsey
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