Geely buys minority stake in air taxi firm Volocopter
ZHEJIANG Geely Holding Group has taken a minority stake in German air taxi startup Volocopter as it aims to transform from car manufacturer to mobility technology group.
The two parties have agreed to form a joint venture to bring air taxis and the urban air mobility technology to China. The venture, to be headquartered in China, is expected to be finalized by the end of 2019 with both the companies holding a 50 percent stake.
Geely led a Series C funding round of investment that raised 50 million euros (US$55 million) and became a minority investor in Volocopter, next to existing strategic investors such as Daimler.
Through the financing, each of the two parties acquired 10 percent of shares in Volocopter. Daimler has owned a stake in the startup since 2017.
Founders Stephan Wolf and Alexander Zosel, both individual shareholders, jointly remain the company’s largest shareholder.
The new fund will be used to launch Volocopter’s Volocity air taxis for commercial launch in three years when Volocopter hopes to obtain the commercial certificate by the Aviation Safety Authority for the electric flying vehicle.
Short-distance travel
Li Shufu, Geely Holding’s chairman, said Geely is investing in and developing a wide range of next-generation technologies. Li said the joint venture underlines Geely’s confidence in Volocopter air taxis as the next ambitious step in wider expansion in both electrification and new mobility services.
The two-seat flying car is designed with a flying speed of 110 kilometers per hour in a single range of 35km, which can be used for short-distance travel.
Volocopter, founded in 2011, builds electrically powered air taxis.
The company aims to help cities transform their transport systems for a more sustainable future by adding a new mobility option for their citizens.
“Urban mobility needs to evolve in the next few years to meet rising demand.
“With our Volocopter air taxis, we are adding a whole new level of mobility in the skies,” said Florian Reuter, the company’s CEO.
Volocopter has more than 150 employees in offices in Bruchsal, Munich and Singapore.
The company has raised a total of 85 million euros from investors including Daimler, Geely and Intel.
In November 2017, Geely completed the acquisition of US flying-car developer Terrafugia, a firm founded in 2006 by five MIT graduates and aiming to put a two-seat aircraft that can switch between driving and flying mode on the market this year.