US Air Taxi Developers Face Financial Hurdles Despite Regulatory Progress The US air taxi industry is at a pivotal crossroads, with companies like Archer Aviation, Eve Air Mobility, and Joby Aviation under financial pressure as they aim to bring electric vertical take-off and landing (eVTOL) aircraft to market. A recent setback for German developer Lilium, now in insolvency proceedings, underscores the financial challenges faced by the sector’s leaders. Regulatory advancements, such as the FAA’s October 22 rule on “powered-lift” aircraft operations, have provided a boost, but funding remains critical. According to McKinsey & Company, venture capital in the "urban air mobility" (UAM) sector, encompassing both eVTOLs and drones, has decreased significantly—from $6.8 billion in 2021 to $3.9 billion in 2023. This decline in funding coincides with a crucial period as companies like Archer and Joby strive for FAA certification and commercial service by next year, requiring $1-$2 billion each to reach full certification and launch production operations. Joby, with $1.4 billion in reserves thanks to recent Toyota investments, is one of the more financially stable players but remains cash-negative as it scales. Archer is adopting a dual model, planning to both operate and sell its eVTOLs, recently securing a $500 million contract with Japan’s Soracle. Meanwhile, Eve Air Mobility, backed by Embraer, remains financially sound with $280 million available, focusing on a 2027 certification goal. While regulatory advancements pave the way for US air taxi launches, capital demands present substantial hurdles, with developers racing to secure funding and strategic partners to reach commercial viability.