Joby vs Archer: An Analysis of eVTOL Makers’ Strategies

There are more solutions than obstacles, Nicolas Zart

In part 1, we saw how Joby’s approach to being vertically integrated is a unique challenge and how well-positioned the company is to achieve this goal. Today, we take a look at a competitor often associated with Joby, Archer.

Archer’s Agile Approach

Compared to Joby Aviation, Archer Aviation takes a more traditional and agile approach, relying on established Tier 1 aerospace suppliers and assembly processes to handle most of their supply chain. According to the company, this strategy enables them to leverage existing industry expertise and supply chains, resulting in a leaner business model and lower capital investments. Archer says it is focused on getting to market quickly with a certified aircraft and scalable operations.

Archer’s Strategic Partnerships

• Abu Dhabi Investment Office (ADIO): Archer has secured a framework deal that covers investment and framework agreement with ADIO to accelerate commercial AAM across the UAE. This includes the development of vertiports and in-country manufacturing of their Midnight eVTOL aircraft.
• Mubadala and UAE Sovereign Wealth Fund: Archer has the backing of Mubadala, one of the UAE’s sovereign wealth funds, providing them with strong financial support and regional connections.
• Falcon Aviation and Air Chateau: Archer has partnered with Falcon Aviation and Air Chateau for maintenance, repair, and overhaul support. These partnerships ensure a robust after-sales service network.
• ADIO’s Smart and Autonomous Vehicles Industry (SAVI) Cluster: Archer’s collaboration with ADIO’s SAVI cluster demonstrates their commitment to innovation and the development of smart and autonomous vehicles across land, sea, and air.

Archer’s Aircraft and Operations

• Midnight eVTOL: Archer’s Midnight is a piloted, four-passenger aircraft designed for rapid back-to-back flights with minimal charge time. It aims to offer safe, sustainable, and low-noise urban air mobility.
• Cylindrical Battery Cells: Archer has opted for cylindrical battery cells, similar to those used by Tesla, to facilitate faster production and potential cost savings.
• Traditional Aerospace Materials: Archer sticks with traditional aerospace materials and manufacturing processes, aiming for a smoother and faster certification process. Archer says this approach reduces development risks and time-to-market.

Archer, From Maker to Midnight

Much like I saw the Joby S4 fly, I saw the Archer prototype Maker fly and transition from vertical to horizontal operation. However, it was a few hundred yards away and had a helicopter as a chaser. Gauging the sound was difficult to do. But as I witnessed with Joby’s eVTOL, the sound was negligible and all we heard was the helicopter.

Market Analysis and Outlook

The eVTOL market is attracting significant interest and investments from various industries. According to a report by McKinsey, see here for the PDF, the urban air mobility market is projected to reach $9 billion by 2030 and $45 billion by 2040. With a growing demand for efficient and sustainable transportation solutions, eVTOL aircraft are expected to play a significant role in the future of urban mobility.

Both Joby and Archer have secured substantial funding and partnerships, positioning them well for future growth. Joby has an extra $400 million more to date. However, challenges remain, including regulatory hurdles and public perception while keeping afloat financially over the next four to five years when UAM operations are stated to commence. The companies must also address safety concerns and establish viable business models to ensure long-term success. Joby’s vertically integrated approach should demonstrate how it can deliver speed by being quicker to respond, adapt, and more agile without relying on potential suppliers and cross-supplier integration bottlenecks)

Forging the Future of Urban Air Mobility Together

The race between Joby and Archer showcases two distinct paths in the emerging eVTOL industry. Joby’s vertical integration strategy offers the potential for enhanced efficiency, tighter control over operations, speed to market, and overall business model agility similar to the approach taken by SpaceX. Meanwhile, Archer’s traditional model leverages existing industry expertise and supply chains, akin to Tesla’s use of off-the-shelf rechargeable batteries. This strategy may result in faster market entry and lower capital investments.

As these rivals continue to innovate and expand their global presence, the battle for AAM dominance will undoubtedly shape the future of urban air mobility. Archer’s approach might seem like the safer bet at first glance, but the challenges faced by Boeing’s current situation of having outsourced too much too quickly leaves many wondering what the right solution is. However, Joby stands as a testament to the feasibility of vertical integration in aerospace, and their success could pave the way for new possibilities.

At Electric Air Mobility, we’re thrilled to witness the birth and race of these pioneering companies. Our cutting-edge vertiport infrastructure and energy management solutions are designed to support such innovative ventures. Just as Tesla and SpaceX forged new paths for electric vehicles and space exploration, Joby and Archer, among the likes of Beta, AutoFlight, and SkyDrive are leading the way toward a future of sustainable and efficient urban air mobility.

We eagerly anticipate the continued growth and developments in this exciting industry, and we’re confident that the sky’s the limit for these pioneers.

For your continued reading:

https://www.ainonline.com/aviation-news/futureflight/2024-04-25/abu-dhabi-backs-evtol-air-taxi-services-archer-and-joby

https://arstechnica.com/space/2024/05/the-surprise-is-not-that-boeing-lost-commercial-crew-but-that-it-finished-at-all

https://www.forbes.com/sites/stevebanker/2024/02/12/boeing-is-haunted-by-two-decades-of-outsourcing/?sh=2f27763264a1