Why are flying taxis set to be the next major disruptor for urban mobility?

Local authorities across the country are making it a top priority to improve urban mobility, lower traffic levels, and increase safety. The urban air mobility (UAM) sector will revolutionize commuter experiences within cities. The future will include agile and environmentally friendly transport options, ranging from compact air taxis to electric vertical take-off and landing (eVTOL) vehicles, the urban air mobility (UAM) sector will likely revolutionize commuter experiences within cities.

This booming industry has attracted significant investment, with McKinsey & Company reporting a notable increase in funding. By June 2023, investments had reached US$2.5 billion, marking a 15% rise from the preceding six-month period in 2022. Over the course of the past year, disclosed funding reached US$4.8 billion, while a total of US$19.8 billion has been raised over the last decade, proving that investors are committed to this sector.  ^[1]

The recent SITA’s “Meet the Megatrends” report, confirms that Urban Air Mobility is the next big thing for airlines and airports, with the first flights likely taking off in 2024. As a result, investment in the space across all stakeholders (including OEM, infrastructure, and systems) will accelerate from $5 billion in 2022 to $28 billion in 2030. ^[2]

The UAM transportation sector grew rapidly throughout 2023 for several reasons. These include a high demand for short-range routes, notable advancements in battery technology and electric propulsion systems, a concerted global effort to diminish aviation's environmental impact and streamlined operational expenditures.

In the Middle East, flying rather than driving will soon be possible. The UAE is leading the way in this sector. It has been working to prepare the infrastructure needed to launch flying taxis in its airspace in recent years.

Deploying electric vertical take-off and landing (eVTOL) aircraft that connects Dubai and Abu Dhabi will reduce travel time from more than two hours, particularly during high-traffic periods, to just 30 minutes. These aerial platforms are designed to service short-haul routes within cities, with flight times of approximately 10 to 15 minutes. This will allow passengers to be swiftly transferred from key transportation hubs such as Dubai International Airport (DXB) to designated vertiports in strategic locations like Palm Jumeirah, Downtown Dubai, and Dubai Marina. ^[3]

Airlines are clearly interested in UAM. SITA’s report, “Meet the Megatrends”, shows that 32% of airlines are investing in major programs and R&D for UAM services and infrastructure. A third of airlines are investing in eVTOL integration technologies for airline operations. UAM services and infrastructure are taking off for airports. In fact, 32% of airports are confirming major programs and R&D on this front. What’s more, 57% of airports have confirmed major programs and R&D plans for integrating intermodal transport systems for data sharing, with 26% investing in technologies for eVTOL integration.

SITA is deploying its expertise in air transport for the emerging UAM industry. We are developing new operating standards and a digital-first passenger experience because UAMs will offer a new form of sustainable aviation, including multiple mobility options to cities worldwide. SITA’s portfolio includes of the best IT solutions for airport management and operations, passenger operations, flight and aircraft operations, baggage processing, and border management.

SITA has over 75 years of experience managing air transport operations. Our deep understanding of the complex, strictly regulated air transport sector allows us to swiftly adapt our knowledge to meet the unique demands of the UAM market. We are well-positioned to provide specialized solutions that can address similar operational challenges, including baggage handling and passenger requirements.¹

With regional governments increasing investment in UAMs, flying taxis and eVTOLs will soon become the next wave of major disruptors in the mobility and aviation sectors.

[1] The era of the flying taxi is fast becoming a reality

[2] Shifting megatrends see the rapid evolution of electric air taxis and emergence of Generative AI as driving forces in travel and transport

[3] Air taxis get closer to takeoff in Dubai. But are we ready?