Transportation Secretary Sean Duffy has shared that the U.S. will allow air taxis to operate within the country in what could be a major boost for Joby Aviation Inc. (NASDAQ:JOBY) and Archer Aviation Inc. (NASDAQ:ACHR).
Air Taxis Will Happen Under Trump, Says Duffy
During an appearance on The Clay Travis and Buck Sexton Show on Thursday, Duffy was asked about air taxis seeing the light of day in the U.S. under President Donald Trump. "100%" Duffy said, adding that air taxis were "safer and quieter and cheaper than a helicopter."
He added that the aviation industry hadn't gone through any major changes in the past 7-8 decades, but predicted a major shift in the sector, as well as in the way "products are delivered" with companies like DoorDash Inc. (NASDAQ:DASH), which recently signed a deal with discount retailer Family Dollar, allowing customers to use the DoorDash app to order groceries, health products, and more from Family Dollar stores.
"With drone deliveries, you're gonna be able to get a hot cup of coffee, your DoorDash” or other "3.5-5-lb deliveries." Duffy also said that air taxis were "fairly inexpensive" and would help people move through the airspace in areas that could be difficult to access otherwise.
JOBY, ACHR Surge
According to Benzinga Pro Data, JOBY surged 7.72% at Market close on Thursday to $15.76, but recorded a slight dip of 0.57% to $15.67 during the after-hours session. On the other hand, ACHR jumped 7.19% to $8.95 at Market close, but declined 0.34% to $8.92 in after-hours trading.
It's worth noting that Archer recently announced plans for a new Miami Air Taxi Network, promising 10-20-minute flights across multiple regions in South Florida like Miami, West Palm Beach, Fort Lauderdale and Boca Raton.
Meanwhile, Hunterbrook Media recently released a report on Archer Aviation, alleging that the company failed to fulfill its promise of showcasing a demo for its Midnight eVTOL at the Dubai Airshow.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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