Uber Is Going 3D

This week, Uber is in D.C. hosting its Elevate Summit, which as you’ve probably guessed, is about Uber elevating its business to the skies.

Getting off the ground

Uber first made its schemes for an air division public back in October 2016. True to form, it was a vision of an on-demand ride-sharing transportation network for congested urban markets. But this time, it wanted to add electric vertical takeoff and landing (eVTOL) aircraft.

Uber Air plans to launch in 2023 in two important markets: Dallas, an aviation hub, and LA, a gridlock hub. On Tuesday, Uber added Melbourne as its third launch city.

Checklist for takeoff

1. Infrastructure. At Elevate this week, design firms showcased 16 skyport concepts. Distributed throughout cities, these “vertiport” and “vertistop” hubs would serve as eVTOL hopscotch points and service stations.
2. Third parties. Uber Air has teamed up with five manufacturers to bring eVTOLs to market. Not sure if you’ve noticed, but even with tons of flying car players, there aren’t a lot of flying cars. Uber’s outsourcing the manufacturing to avoid putting all its eggs in one air taxi basket.
3. Conquered obstacles. Uber Air will have to grapple with noise pollution issues, high costs, regulation, air traffic control headaches, skepticism from the public, energy storage capabilities, and more.

To infinity and beyond (maybe)

With flying cars, everything’s bigger. By 2040, the global market size could be $2.9 trillion, per Morgan Stanley bulls. If unprofitable Uber can actually deploy Air on a cheaper per-mile, per-passenger basis than its ride-hailing business, it could make money. But right now, the industry only has prototypes and a big plan to transform sci-fi vision into transportation reality.

+ The other aerial bets: Uber Copter is coming to NYC and Uber Eats just announced plans to deliver food via drone in San Diego this summer. On the ground, there’s the autonomous play: Uber’s Advanced Technologies Group unveiled its first purpose-built self-driving Volvo XC90.