Boeing - Investment in Archer

Boeing is taking calculated steps to create a monopoly in the air taxi market, and the FAA has released a plan for its growth. Boeing wants to have control over the networks and operating systems that the air taxi sector will use, which might make them the most successful aeroplane manufacturer in the entire globe. With the sole supplier of autonomous technology for air taxis, Boeing's acquisition of WISK and exclusive relationship with Archer ensure its supremacy in the market. Boeing aims to be the only provider of the hardware and software necessary to implement stage 5, and recent strategic decisions have increased the likelihood, if not outright certainty, of success. Boeing has ensured it will be the only player in the US autonomous air taxi system market and, as a result, likely the only one in the world by purchasing the entirety of Wisk and tying Archer into a long-term exclusivity agreement over autonomous technology.

Based on their earning’s call, the key take aways are that Boeing will be investing in Archer’s latest aerospace funding round, and they will be the exclusive provider of autonomous tech for all future variants of Archer aircraft. This is a win-in situation for both Boeing and Archer, as Boeing obtain more deals by being the provider of Archer aircraft, while Archer discusses in their earnings call that this is in line with their overall strategic plan as Boeing has the best aerospace and autonomous technology.

The FAA has established a road plan for the air taxi industry, and by 2028, it wants fully autonomous eVTOL aircraft offering on-demand services in multiple US cities. The two market leaders, JOBY and Archer, have identified 2025 as the beginning of small-scale, low-density services in accordance with the FAA whitepaper. A number of businesses are developing aircraft and advancing down the certification pathway. Boeing is the sole business creating the autonomous technology required to launch high-density services since it purchased WISK. UTM businesses continue to prioritise drone delivery services above air taxi services.

Boeing will have a significant collection of proprietary data that will surround its operations and provide it a competitive advantage. Towns and regions will likely demand that UAMs use that system once the Boeing technology is in place. With this, Boeing is likely to succeed in whatever it does and monopolises a sizable and important global market.

https://www.flightglobal.com/airframers/boeing-invests-in-archer-settling-lawsuit-with-wisk/154503.article13/#:\~:text=SoftBank%20began%20preparations%20for%20an,%2410%20billion%20for%20its%20listing