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Joby Aviation & SK Telecom: $100m Bet on Aerial Ridesharing in Korea

Source: Joby Aviation

Joby Aviation (NYSE: JOBY) secures a $100 million investment from SK Telecom(NYSE: SKM) for the South Korean air ridesharing initiative.

Why it matters: The partnership between Joby Aviation, an all-electric aircraft developer, and South Korean telecommunications giant SK Telecom could redefine the future of urban mobility in South Korea and worldwide.

The Key Points:

  • Joby Aviation announced a $100 million equity investment from SK Telecom. The deal strengthens an expanded partnership agreement that the two companies initiated on June 27, 2023.
  • The investment enables Joby Aviation to participate in the "K-UAM Grand Challenge," a program supported by the Korean Ministry of Land, Infrastructure, and Transport to facilitate the adoption of air ridesharing in South Korea.
  • Joby Aviation and SK Telecom launched their strategic collaboration in February 2022, with an expansion to include TMAP, South Korea's largest mobility platform, in May 2022. The recent investment will catalyze further partnerships in Korea's mobility ecosystem.
  • Joby Aviation and SK Telecom's shared commitment to innovation could highlight aerial ridesharing as a viable solution to urban congestion.
  • However, the long-term impact of this partnership on Korea's transportation infrastructure remains to be determined.

The Big Picture: Joby Aviation, a California-based company, is developing an all-electric, vertical takeoff and landing air taxi.

This service aims to provide a fast, quiet, and convenient mode of transportation in urban environments worldwide.

SK Telecom, a pioneer in the mobile industry since 1984, has expanded its focus beyond connectivity.

With an emphasis on artificial intelligence, the company is rapidly transforming into an AI company, driving advancements in multiple sectors, including telecommunications, media, AI, metaverse, cloud, and connectivity.

This strategic collaboration between Joby Aviation and SK Telecom can highlight the potential of aerial ridesharing to address urban congestion.

The ultimate impact of this collaboration on the South Korean and global transportation landscape remains to be seen.