Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Hyundai partners with Uber for air taxi service
Hyundai Motor Group Executive Vice Chairman Chung Euisun, left, and Uber CEO Dara Khosrowshahi hold their partnership agreement at the former's booth at the 2020 Consumer Electronics Show in Las Vegas, Wednesday (KST). Courtesy of Hyundai Motor
By Nam Hyun-woo
By Nam Hyun-woo
LAS VEGAS _ South Korea's Hyundai Motor Group signed an agreement with Uber under which the two companies will work together to boost a promising air taxi business.
The deal came on the sidelines of this year's technology exhibition in Las Vegas. The collaboration is widely viewed as an ambitious action plan by the South Korean carmaker's rapprochement toward becoming a “serious” smart mobility service provider by diversifying its sagging revenue channels.
On the sidelines of the Las Vegas fair, Hyundai Motor Group Executive Vice Chairman Chung Euisun and Uber CEO Dara Khosrowshahi signed a partnership agreement on urban air mobility (UAM). Hyundai is the first company joining Uber as a strategic partner on UAM.
After the signing ceremony, Hyundai unveiled the S-A1 air vehicle concept, whose design was revealed through a mini replica at the company's press conference a day earlier. The S-A1 is an electric vertical take-off and landing (eVTOL) aircraft developed with Uber under the partnership.
“Through the partnership with Uber, we will accelerate efforts to harness Hyundai's businesses and technologies to deliver true freedom of mobility,” Chung said. “We will innovate tirelessly to redefine the boundaries of mobility and provide quality time to customers.” Hyundai Motor said its urban air mobility service is one of the most innovative businesses that will liberate people from traffic congestion.
The agreement is calling for Hyundai Motor to both develop and manufacture air vehicles, while Uber will provide its mobility service platform. Also, the two companies will join forces for developing landing sites.
From Uber's standpoint, its air taxi unit ― Uber Elevate ― will lead the partnership. Uber Elevate seeks to launch its Uber Air service by 2023, and to work with conventional aircraft makers such as Bell, Boeing and Embraer. Uber Air will run pilot projects in multiple cities including Seoul.
A mockup of Hyundai Motor's S-A1 displayed at the company's booth at the 2020 Consumer Electronics Show in Las Vegas, Wednesday (KST). Courtesy of Hyundai Motor
“Hyundai's large scale manufacturing capabilities offer a major step forward for Uber Elevate,” Uber CEO Dara Khosrowshahi said. “As Hyundai taps its automotive industry experience to mass produce air taxis, we will be able to take Uber's platform into the skies more quickly, expanding affordable and seamless transportation in cities around the world.”
Analysts remained upbeat over the partnership saying Hyundai Motor has presented a detailed action plan for its mobility initiatives.
“Instead of covering the whole value chain of air mobility services, Hyundai Motor opted to partner with Uber, which allowed the company to preoccupy market leadership,” Korea Investment & Securities analyst Kim Jin-woo said from Seoul. “There are realistic problems remaining such as the timeframe of mass production, the value chain and the rivalry with other air mobility service providers, the partnership comes as a bold blueprint that clears doubts on Hyundai Motor's future mobility services.”
According to U.S. data analytics firm INRIX, American drivers have wasted an average 97 hours per person stuck in traffic jams in 2018, which was also interpreted at a cost per person of $1,348.
Morgan Stanley also expects the value of the global urban air mobility market will grow to $1.5 trillion in 2040.
Visitors crowd Hyundai Motor's booth at the 2020 Consumer Electronics Show in Las Vegas, Wednesday (KST). Displayed above the crowd is Hyundai Motor's air taxi concept, the S-A1. Courtesy of Hyundai Motor