By 2025, South Korea will have flying taxis
South Korean telecom giant SK Telecom is planning to launch a flying taxi service by 2025.
That's what an SK Telecom executive told CNBC, adding that he hopes to generate "significant" revenue in the future.
Last year, SK Telecom and the US company Joby Aviation signed a partnership to develop air taxis for the Korean market. Joby Aviation is a maker of “electric vertical take-off and landing” vehicles, which are seen as a way to move people around crowded cities, avoiding traffic.
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By 2025, South Korea will have flying taxis (illustrative photo). Source: Xinhua |
The South Korean government is also pushing for commercialization of air taxis by 2025.
SK Telecom and Joby Aviation are looking to capitalize on government support. SK Telecom Chief Development Officer Ha Min-yong told CNBC in an interview on Sunday that the company’s air taxi service will be available “around mid-2025,” before expanding into other areas such as logistics.
“So by 2025, if we can prove that the service quality is acceptable to the public along with safety and security, then the government will allow the operator to expand the service area, including logistics and tourism as well as medical-related services,” Ha said.
SK Telecom is looking to expand beyond its traditional role as a mobile carrier. It is also targeting new areas such as artificial intelligence (AI) and flying taxis. These aircraft will require connectivity to next-generation 5G networks to operate, and eventually become autonomous. That is where SK Telecom’s expertise comes in.
While this form of transportation is in its early stages, consultancy Roland Berger predicts that there will be nearly 160,000 electric drones in use worldwide by 2050, generating annual revenues of nearly $90 billion.
SK Telecom wants to get in on the game, Ha said, adding that if all goes well, air taxis could be a big revenue generator for the company, “but not right away.”
“So for at least the next 5-7 years, we need to make sure that the service we are going to provide to the society and the community is safe enough. Once it is accepted by the community and the society, then we believe it will generate a significant amount of revenue,” Ha said.