Archer Aviation Aims to Launch Flying Taxis Amid High Stakes and Progress

San Francisco, California – Archer Aviation is making significant strides toward launching flying taxis, a concept that previously seemed like science fiction. As investors often think of electric cars when discussing innovative transportation, flying taxis are now gaining attention, with Archer at the forefront of this technology.

The company is backed by major players like United Airlines and Stellantis, allowing it to attract interest on Wall Street despite yet to generate meaningful revenue. The risks remain substantial, but recent advancements indicate that Archer warrants further scrutiny.

Archer designs and manufactures electric vertical takeoff and landing (eVTOL) aircraft, which are intended for short trips of about 20 miles—ideal for airport transfers or commutes from urban centers to suburbs. Its key aircraft, named Midnight, is capable of carrying four passengers and a pilot.

Plans include establishing an air taxi network in collaboration with airlines, rideshare services, and government entities. Unlike typical aerospace manufacturers that mainly sell aircraft, Archer aims to run the service itself, positioning it as the ‘Uber of the sky.’ The company also intends to selectively sell its aircraft to third parties, with agreements in place with both United Airlines and the U.S. Air Force to purchase its planes.

The potential market for urban air mobility is vast, with Morgan Stanley estimating it could reach $1 trillion by 2040, expanding to $9 trillion by 2050. These predictions underline the immense possibilities that may lie ahead.

While Archer does not need to dominate the market, it must remain a key player to succeed. The company is still in the early stages of commercialization but has achieved milestones that lend it credibility over lesser-known counterparts. Each step forward mitigates risk and illustrates its steady advance toward operational viability.

However, investment in Archer continues to be speculative. The company has yet to record any revenue, while spending hundreds of millions to push its aircraft towards market readiness. In the first half of 2025 alone, Archer reported a cash burn of $198 million, supplementing its operations with an additional $34 million in investing cash flow.

As of June 2025, Archer had $1.7 billion in cash, which should suffice for at least three years, provided expenses do not escalate. Nevertheless, greater capital will be necessary to increase production and launch commercial services, leading to potential fundraising through debt or equity.

The regulatory environment also poses obstacles, as the FAA has yet to certify an eVTOL aircraft. Any postponement in gaining approval for Midnight could delay Archer’s operational goals considerably.

Archer Aviation stands as a leader in the pursuit of flying taxis, supported by its partnerships and recent achievements in certification and manufacturing. However, the journey ahead presents significant challenges. With no revenue, ongoing cash shortages, and regulatory uncertainties, the company finds itself at a crossroads. For investors open to workable risks, Archer might present a unique opportunity in a burgeoning sector. Others may consider monitoring the situation until Archer’s Midnight aircraft and its overall business model are fully realized.