Joby and Uber to bring Blade air mobility services to Uber app

Joby Aviation (JOBY) and Uber Technologies (UBER) announced an expanded partnership to integrate Blade's air mobility services into the Uber app next year, leveraging Uber's platform to accelerate the deployment of Joby's electric air taxi service in key markets like NYC and Southern Europe. While Joby's stock has surged over 160% and it maintains a strong cash position, the company reported significant Q2 2025 earnings and revenue misses and is projected to remain unprofitable. Despite these financial challenges, Joby continues to advance its eVTOL technology, demonstrated by recent successful flights and military exercises, leading Needham to maintain a Buy rating, highlighting the long-term commercialization potential amid near-term profitability hurdles.

Analysis

Joby Aviation (JOBY) is advancing its strategic market entry through an expanded partnership with Uber, which will integrate the recently acquired Blade air mobility services into the Uber app. This move provides Joby with immediate access to an established network that served over 50,000 passengers in 2024 across key markets like New York and Southern Europe, laying the groundwork for its future electric air taxi service. Investor enthusiasm for this long-term vision is reflected in the stock's over 160% surge in the past year. However, this strategic progress is sharply contrasted by the company's current financial performance. Joby reported a significant Q2 2025 earnings miss, with an EPS of -$0.41 against a forecast of -$0.19, and revenue of just $20,000, far below the anticipated $1.57 million. While the company maintains a strong balance sheet with more cash than debt and impressive gross profit margins exceeding 52%, analysis indicates it is trading above fair value and is projected to remain unprofitable. Despite the financial headwinds, continued technological validation, including a successful piloted flight between public airports and a Buy rating from Needham with a $22 price target, reinforces the bull case centered on long-term disruption potential.

Key Decisions for Investors

• Investors with a high-risk tolerance and long-term horizon should view the Uber partnership and technological milestones as critical de-risking events, but must weigh this against the company's significant cash burn and pre-commercialization status.
• Given the substantial Q2 2025 earnings and revenue miss, coupled with analysis suggesting the stock is trading above fair value after a 160% run-up, current valuation presents a significant risk and warrants caution.
• Monitor future execution closely, particularly the rate of cash burn, progress towards regulatory certification, and the timeline for launching its own aircraft on the Uber network, as these will be pivotal catalysts for the stock.