Are flying taxis the future of commuting? Blade thinks so with announcement to go public
Even as the pandemic continues to devastate the aviation industry, Blade remains committed to providing relatively affordable air transportation alternatives to cut traffic. The six-year-old Uber-like aviation company has just announced plans to go public by merging with a blank-check company.
This deal will value Blade at about $825 million, which is well ahead of its 2018 valuation of $140 million. It's expected to close in the first half of 2021, and will see the company trade on the Nasdaq under the ticker "BLDE."
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
Blade is best known for its helicopter flights between Manhattan and New York's three major airports, which start at $195 per seat (or $95 with the purchase of an annual Airport Pass), and the Hamptons, which range between $595 and $795 per seat (or $295 for monthly commuter pass holders). But the company also offers on-demand charters for helicopters, turboprops and any class of private jet to practically anywhere in the world. For those looking to fly private on a budget, it also lets you book by-the-seat on scheduled BLADEone flights to popular vacation spots or member-proposed "FlightTilt" charters. The company doesn't actually own any of its aircraft and instead acts as an agent of charter operators who do the actual flying with their planes and crews.
Related: Blade now requiring pre-flight COVID-19 testing for scheduled jet flights
The company plans to use proceeds from the transaction to fund expansion into new markets, including the Northeast Corridor and West Coast in the United States, as well as internationally in Asia. Part of the proceeds will also go towards funding Blade's transition to eVTOL (electric vertical takeoff and landing) aircraft.
Airbus, an investor in Blade, is already in the process of developing self-flying, electric aircraft. Other transportation companies like Bell Helicopters are working on eVTOL flying taxi systems as well. Uber also plans to integrate air taxis into its app, but sold its urban air mobility initiative earlier this month. According to Morgan Stanley Equity Research, urban air mobility is expected to be a $125 billion market by 2025 and grow to $650 billion over the next decade.
Related: Flying taxi takes off for first time in North America
News of Blade's plan to go public comes amid a bullish market for tech-focused IPOs.
DoorDash and Airbnb each went public this month with blockbuster IPOs that far exceeded expectations. Airbnb, for example, was valued at more than $100 billion shortly after it went public — a valuation that exceeds the combined value of well-established lodging giants Hilton and Marriott, according to CNN.
The IPOs from both companies benefitted from a market flush with low interest rates and investors seeking a good return.
But at least some skeptics now wonder if the start-ups can live up to the expectations that were set with their first-day trading run-ups. One Wall Street analyst quoted by Bloomberg News warned Airbnb's valuation is "more than stretched" as compared to comparable travel companies. DoorDash faces similar concerns in its space, another warned.
For now, those watching Blade will be left to wonder if its IPO will hit the high marks set by Airbnb and DoorDash.
View this post on Instagram
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.