Morgan Stanley stated that integrating air taxi bookings into the Uber application could help accelerate passenger adoption, despite existing regulatory risks.

Shares of Joby Aviation rose approximately 2% on Monday after Morgan Stanley highlighted the potential upside from the company's integration with Uber Technologies.

The partnership links Joby's electric vertical takeoff and landing aircraft with the Uber app through the new Uber Air service. Customers can enter their destination in the app and, if eligible, select the air taxi option, which combines ground transportation and flight booking in a single transaction.

Morgan Stanley analyst Adam Jonas noted that embedding the service within the widely used ride-hailing platform could help Joby capture early passenger demand. He added that regulatory certification and broader consumer acceptance remain key uncertainties for the emerging urban air mobility market.

Joby's aircraft is designed to carry up to four passengers and one pilot. The all-electric vehicle uses six tilting rotors for vertical lift before transitioning to forward flight, with a top speed of nearly 200 miles per hour and an estimated range of up to 100 miles on a single charge.