Electric vertical takeoff and landing aircraft, or eVTOLs, are seeing a shift in their flight path as consolidation accelerates and new revenue streams emerge. The sector is moving past early development and toward a phase where companies must prove their business models can survive the long, expensive process of certification and commercial deployment.
Archer Aviation announced it now owns Wisk Aero, a deal that resulted from Boeing selling Wisk and two other subsidiaries to Archer in exchange for a 16.5% stake. The transaction included SkyGrid, a software company focused on airspace management, and Insitu, a drone manufacturer.
For those tracking the industry, the timing is notable. Wisk and Archer had a contentious history, with Wisk suing Archer in 2021 over allegations of “brazen theft” of intellectual property. That two-year legal battle concluded with a settlement that not only ended the lawsuits but also paved the way for this merger.
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Wisk’s history is winding. It began as Kitty Hawk, an electric aviation startup led by Sebastian Thrun and backed by Larry Page. When Kitty Hawk shut down in September 2022, its Cora program lived on through a joint venture with Boeing, which was eventually renamed Wisk Aero.
Joby Defense targets military contracts
While Archer focused on horizontal consolidation, Joby Aviation pursued vertical expansion by acquiring Resonant Sciences for $500 million. Resonant manufactures radio frequency and sensor systems, and the deal will form a dedicated defense business under the name Joby Defense.
Joby has been slowly moving into the defense sector over the last couple of years. The company says it remains committed to its mission of manufacturing urban air taxis, but it also sees clear commercial opportunities in military applications. The acquisition adds hardware and sensor capabilities that could help secure defense contracts.
What this means for the industry
Both deals highlight a pragmatic approach to survival in a sector that is still years away from widespread regulation. Companies are no longer just burning cash on research; they are buying assets to reduce costs and entering markets that offer immediate, tangible revenue. By entering the defense sector, Joby can access government budgets that are currently available, whereas the passenger air taxi market is waiting on FAA approval. The Archer-Wisk merger creates a larger entity with more resources to handle the complex airspace integration required for urban air mobility to function safely.
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Uber’s decision to sell its stake in Serve Robotics, the autonomous delivery robot company it spun out years ago, further illustrates this trend. Uber sold the entire holding, reportedly surprising the robot company, which learned about the sale only after a regulatory filing was posted. Despite the sale, Uber and Serve remain partners on the Uber Eats platform, with their contract set to expire in 2027. This suggests that while Uber is pivoting its investment strategy, it is not abandoning its existing delivery logistics.
The consolidation trend extends to software platforms as well. Safety and management software providers face significant vulnerabilities, as a recent security analysis shows. An AI security platform can be a target for hackers, creating risks for the broader industry.
Palantir CEO Alex Karp has criticized the broader AI industry for its lack of rigorous testing and safety standards. His remarks suggest that the rapid pace of development has outpaced the necessary oversight to ensure reliable systems.
