Season 7, Post 32: Almost cleared for take-off
“We have a congestion problem… and the only way is up” was how the management team of Archer Aviation began a recent lunch meeting, which your author was privileged to attend. Archer is an electric flying air taxi company that has big plans. We first discussed eVTOLs (electric Vertical Take-Off and Landing devices) in 2022, describing the transportation of people as the “holy grail” for the drone industry. The reality may be just around the corner.
The technology behind Archer’s vehicles was initially pioneered by NASA over 40 years ago. Archer has been operating for 14 and is now on the ninth iteration of its craft. The challenges of combining a powertrain with software and then scaling it should not be underrated. Archer’s vehicles are designed to operate autonomously, launching like a helicopter and then flying more like a plane.
Visitors to Abu Dhabi could be the first to experience Archer’s technology at work. eVTOLs arrived in June and a trial flight took place last month. With more than 70 helipads in the city, the scope for the service to be rolled out (once pads are converted) is significant. Other geographies – most likely in Asia – could follow shortly. The “best possible advertisement”, however, for Archer will be the 2028 Olympics in Los Angeles. The business has an exclusive contract to provide flying taxi services and hopes to have tens of vehicles available.
It seems clear to us that commercial demand for eVTOLs will be driven by the need for urban air taxis and logistics solutions (defence use-cases will create an additional growth lever). For the US, gaining a lead in the “electrification of the air” is becoming a strategic priority. Consultants estimate that the eVTOL market could be worth $170bn within a decade, a more than 70-fold increase relative to today. Although accidents will happen along the way and some consumers may be reluctant to take to the skies, your author is excited already.
28 August 2025
The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
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Alex Gunz, Fund Manager
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