Blade hits eight-month high on sale of helicopter rideshare business to Joby Aviation

Blade Air Mobility, a smaller aviation company, soared more than 17% yesterday, August 4. The company has agreed to sell its helicopter rideshare business to air taxi developer Joby Aviation. The deal will mean cheaper flights, the prices for which are still comparable to Uber Black, explains Blade.

Blade stock jumped more than 17% yesterday to $4.43 per share, an eight-month high. The company's market capitalization amounted to $359 million at the close. 

Investors were encouraged by the news that Blade will sell its passenger division. The buyer will be electric vertical takeoff and landing (eVTOL) air taxi developer Joby Aviation. The deal is valued at as much as $125 million. 

The buyer will acquire Blade's passenger operations in the U.S. and Europe, lounges, terminals, and brand, the statement said. The company will become a subsidiary of Joby and will continue to be led by founder and CEO Rob Wiesenthal. The deal is expected to close in the coming weeks.

Blade will remain a public company and its organ transport business will be renamed Strata Critical Medical. It will focus on high-value, mission-critical air medical services. Blade calls itself one of the largest air transporters of human organs for transplant in the U.S. It is the company's most profitable and fastest-growing business line, the company said. For example, in 2024, the medical division's adjusted EBITDA increased 79.3% to $19.3 million, compared to only $3.6 million for the passenger  segment (while the figure was negative in 2023). 

A new ticker for Strata will be announced at a later date.

Joby and Archer Aviation are in a race to become the first to launch commercial passenger service using eVTOL aircraft. Both companies are approaching type certification and plan to begin operations in the same market, the UAE, in the coming months.

The deal with Blade will provide Joby with a loyal global customer base and immediate access to key aviation markets as it prepares for the first passenger flights in Dubai in 2026, it said in its announcement of the deal. Joby stock also rose on the news, gaining nearly 19% to $20.39 per share. 

Wiesenthal, in an interview with CNBC, added: now, prices for air rideshares are comparable to the Uber Black premium service, but Joby’s technology, along with lower maintenance costs, should bring prices down over time.

The AI translation of this story was reviewed by a human editor.