Archer Aviation has announced a collaboration with Kakao Mobility to introduce electric air cab flights in South Korea starting in 2026, provided they can complete development of their aircraft on time.
As part of its international expansion strategy, Archer also plans commercial launches in the United Arab Emirates and India later in the year. Likewise, competitor Joby Aviation also has plans for South Korea in conjunction with SK Telecom and UT, a ride-sharing company that combines the efforts of Uber and T Map Mobility to integrate air and ground travel.
Archer Midnight Aircraft
Under the recent agreement, Kakao Mobility will purchase and operate the electric vertical take-off and landing (eVTOL) aircraft (eVTOL) Midnight by Archer. This service will be available to more than 30 million users of the Kakao T mobile app, starting in Seoul.
Archer’s Midnight aircraft is designed for urban travel, with a range of 100 miles and a payload in excess of 1,000 pounds, allowing it to carry four passengers in addition to the pilot. However, development of the vehicle is still ongoing and has not yet received FAA certification.
“The vision is clear: to reduce wasted hours in traffic and improve daily commutes with an electric air cab service featuring Archer’s Midnight aircraft,” Christopher SungWook Chang, senior vice president of Kakao Mobility, said in a statement. Previously, Kakao had signed a similar agreement with the British startup eVTOL Vertical Aerospace although it has not been confirmed whether this agreement is still in force.
Kakao invests in Archer electric air cabs
Archer and Kakao are collaborating on the K-UAM (Korea Urban Air Mobility) Grand Challenge, a South Korean government initiative to develop and test commercial UAM technologies. A public demonstration of the Archer aircraft is expected in South Korea in late 2024.
To support Archer’s initial commercialization efforts in Korea, Kakao is providing $7 million this year, with a second delivery planned for the first quarter of 2025. In total, Kakao agreed to purchase up to 50 Midnight aircraft, valued at approximately $250 million, including pre-delivery payments.
Although Archer has not specified when it will fulfill these orders, the company has entered into an agreement with Stellantis for mass production of its eVTOLs and access to up to $150 million in additional capital. However, Archer has yet to cover all costs associated with this collaboration. In the first quarter of 2024, Archer spent $83.5 million on R&D, accumulating losses since its founding of around $807.4 million.
These losses are expected to continue as they develop vehicles and build air cab networks, which will not be profitable for some time.
Archer Aviation in Miami and San Francisco by 2025
Archer has shared plans to launch air cab services in Miami and San Francisco in 2025, in partnership with United Airlines and Atlantic, a fixed-base operator. However, they have not yet provided updates on these releases.
In addition to its initiatives in South Korea, Archer Aviation is exploring the possibility of deploying fast charging stations in key cities to support its air cab network. This would not only facilitate the continued operability of their eVTOLs, but could also encourage greater uptake of urban air mobility by providing infrastructure solutions necessary for the growth of the sector.
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Source and photo: techcrunch
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