Archer Aviation and Joby Aviation represent two fundamentally different approaches to building the flying taxi industry, with one relying on manufacturing partnerships and the other controlling every step from design to operations. Both companies are advancing through Federal Aviation Administration (FAA) certification and competing for dominance in a market that Morgan Stanley estimates could reach $9 trillion by 2050.

What's the Difference Between Archer and Joby's Business Models?

The two eVTOL (electric vertical takeoff and landing) leaders have chosen starkly different paths to scale their operations. Joby is building a vertically integrated company that designs, engineers, manufactures, and operates its own branded air taxi network. The company owns manufacturing facilities in Marina, California and a 700,000 square-foot facility in Dayton, Ohio, which together can produce up to 500 eVTOL aircraft per year. Joby also acquired Blade Air Mobility's passenger division last year, gaining access to 12 urban terminals and lounges plus an experienced customer transportation business.

Archer Aviation is taking the opposite approach. The company has partnered with Stellantis, a major automotive manufacturer, which serves as its exclusive manufacturer and provides both funding and supply chain expertise. Stellantis helped Archer build a high-volume manufacturing facility in Covington, Georgia where Archer aims to produce 650 aircraft annually. This asset-light model lets Archer avoid the upfront costs of developing its own manufacturing infrastructure while still scaling quickly.

How Are These Companies Planning to Generate Revenue?

Revenue strategies differ as sharply as their manufacturing approaches. Joby plans to own and operate its own air taxi network, similar to how ride-sharing services work today. The company has partnerships with Uber and Delta Air Lines to support this vision. By controlling the entire operation from aircraft production to customer service, Joby could capture higher profit margins once commercial operations begin, though it also carries greater operational risk and capital requirements.

Archer is pursuing a dual revenue model. The company is building its own proprietary ride-share services while simultaneously selling its Midnight eVTOL aircraft directly to third-party fleet operators and major airlines like United Airlines. This approach allows Archer to generate revenue immediately from aircraft sales while its ride-share business scales up. The company has already amassed a $6 billion backlog of orders.

Key Strategic Differences Between the Two Companies

• Manufacturing Control: Joby manufactures aircraft components in-house with Toyota as a major investor and manufacturing consultant, while Archer relies entirely on Stellantis for manufacturing and supply chain management.
• Revenue Diversification: Joby focuses on operating its own air taxi network, whereas Archer generates revenue from both aircraft sales to third parties and its own ride-share services.
• Capital Requirements: Joby's vertical integration requires significant upfront investment in facilities and operations, while Archer's partnership model reduces capital burden by outsourcing manufacturing.
• Intellectual Property: Joby owns its manufacturing process and intellectual property, potentially enabling higher long-term profit margins, while Archer's asset-light approach prioritizes speed to market over margin control.

Both companies have been selected as partners in the FAA's eVTOL Integration Pilot Program (eIPP), which accelerates deployment of eVTOL aircraft by allowing real-world operations in the National Airspace System. This regulatory progress is crucial for both firms as they work toward commercial launch within the next year.

What Should Investors Know About These Early-Stage Companies?

Both Joby and Archer remain higher-risk investments as they navigate the FAA's rigorous, multistage certification process and continue burning cash before generating meaningful revenue. The companies are competing in a young, undeveloped industry where regulatory approval timelines remain uncertain. However, the scale of the opportunity is enormous. Unlike traditional helicopters, eVTOL aircraft use distributed electric propulsion, making them significantly quieter and producing far fewer carbon emissions, which makes them far better suited for urban transportation.

The choice between these two companies ultimately depends on investment philosophy. Joby's vertical integration could deliver higher long-term profit margins if the company successfully executes its end-to-end service model. Archer's partnership approach offers faster scaling and immediate revenue from aircraft sales, though it may face margin pressure from sharing manufacturing control with Stellantis. Both are racing toward the same destination, but they're taking fundamentally different routes to get there.