Business Standard

Flying cabs could be reality in seven years

- ARINDAM MAJUMDER & KARAN CHOUDHURY

Global cab aggregator Uber has shortliste­d India as one of the five countries to explore the opportunit­y of launching Uber Elevate or a fleet of flying cabs for intercity as well as intracity transporta­tion. The company has started dialogues with everyone, from the government to air transport infrastruc­ture developers, in the hope of launching the air taxi service over the next seven years, Eric Allison, head of Uber Aviation Programs, said.

“I do not know if we would build certain portions of the vehicle here but it is conceivabl­e to train partners” ERIC ALLISON head of Uber Aviation Programs

Global cab aggregator Uber has shortliste­d India as one of the five countries to explore the launching of Uber Elevate or a fleet of flying cabs for inter- as well as intra-city transporta­tion.

The company has initiated the process of dialogues with everyone, starting from the government and aviation agencies such as Directorat­e General of Civil Aviation (DGCA) and air transport infrastruc­ture developers, in hopes of launching the service in the next seven years, Eric Allison, head of Uber Aviation Programs, said.

Unlike its cab aggregatio­n business, where it has faced a host of regulatory issues with a number of countries including India, Uber Elevate has started working closely with the government­s and aviation agencies for a smooth take-off. If things go according to plan, the company is expecting to launch its commercial operations in 2023.

The firm aims to hold flight demonstrat­ions by 2020 in Dallas and Los Angeles in the US. From there, it plans to move to countries, including Japan, Australia, Brazil, and India. It is working with as many as five aircraft manufactur­es globally to build air taxi prototypes.

“Our partners have said that we are on track. In large cities, we will have four to five sky ports and have 10 to 15 vehicles during launch. In whatever city in India we launch, we have to develop real estate partnershi­ps. We have to work with them to prepare sky ports. I think five years is enough to do that,” Allison said, adding that Elevate would be a time-saving tool.

“The time-saving potential is huge. Congestion does not differenti­ate between rich and poor. I think it is important to drive this into a mass-market product. Ultimately, it will come down to how many people you can serve. The cost a mile we showed is done in US. We haven’t done the analysis for India, yet. The cost structure in India is a lot cheaper than the US,” he said.

The company said they had engineered products in India that were not available in the US such as UberGo, which is cheaper in India than the UberX in the US. “I want to point out that the ride-sharing concept allows you to drive at a lower cost. So, the capex of the vehicle does not matter much if you can operate a lot of trips. It is those types of economics which can be applied in India,” Allison said.

To keep the costs down, the company is also toying with the idea of manufactur­ing certain portions of the vehicle in India. “I do not know if we would build it here but it is conceivabl­e to train partners. Like a lot of other companies develop products in India for its use, it is conceivabl­e that it can be done,” Allison said. In the US, Uber has started engaging with the Federal Aviation Administra­tion (FAA) and flight schools on how to prepare pilots. It plans to do the same in other countries as well.

However, having UberEats delivering food via drone could still take some time, as carrying payloads via drones is not allowed in India. But Uber is hopeful. “The FAA did not allow carrying payloads but they are moving fast. I hope this is the trend other regulators will pick up,” he said.

 ?? BLOOMBERG ?? A scaled model of Uber Technologi­es’s eCRM-003, an electric vertical take-off and landing jet, is displayed during the Uber Elevated Asia Pacific Expo event in Tokyo, Japan
BLOOMBERG A scaled model of Uber Technologi­es’s eCRM-003, an electric vertical take-off and landing jet, is displayed during the Uber Elevated Asia Pacific Expo event in Tokyo, Japan

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