Joby Aviation (JOBY) Chief Executive JoeBen Bevirt said the era of "flying cars" is nearly here, as the company plans to launch commercial electric air taxi service in Dubai next year, according to a Friday interview with The Information.

The company recently conducted a test flight in Dubai and said it is doubling production at its California facility, according to the report.

Bevirt said the company plans to launch its air taxi service in Dubai first, setting up four small airports called "vertiports." The taxis will carry passengers between the airport, downtown, and the city's marina. Fares will initially be high, similar to Uber Technologies' (UBER) Black service, but are expected to drop to UberX-level prices over time, according to Bevirt. Later next year, the company aims to begin service in US cities, including New York and Los Angeles, Bevirt also said.

While production and scaling of the air taxis remain challenges, Joby has Toyota Motor (TM) as a major partner, which holds a 22% stake in the company and has invested nearly $1 billion, the report said. Joby said he believes its manufacturing partnership with Toyota gives it an edge in avoiding "production hell," a challenge faced by many electric vehicle startups, according to the report.

"Our challenge is maybe a little different than the automotive one. We're not trying to build hundreds of thousands of millions of vehicles a year today. We're very firmly focused on the here and now and making a really important aircraft," Bevirt was quoted as saying by The Information.

Shares were up 2.6% in recent afternoon trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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