Uber Air to launch in Melbourne

The new type of aircraft – a piloted, electric passenger aircraft designed by Uber’s manufacturing partners, including Bell and Boeing – are designed to carry four passengers with hand luggage of up to 18 kilograms.

Melbourne will join Dallas and Los Angeles as pilot cities for the program, with test flights due to start from 2020 and plans for commercial operations to commence from 2023.

Sources familiar with the negotiations said Melbourne and Sydney had both been in the running but support from the Victorian government helped ensure it was the first city off the block, with Victorian Assistant Treasurer Robin Scott flying to Washington to help make the announcement.

“The state government of Victoria has been highly supportive,” said Susan Anderson, general manager for Uber in Australia, New Zealand and North Asia.

“This, coupled with Melbourne’s unique demographic and geospatial factors, and culture of innovation and technology, makes Melbourne the perfect third launch city for Uber Air. We will see other Australian cities following soon after.”

The 19-kilometre journey from Melbourne’s CBD to Tullamarine airport currently takes anywhere from 25 minutes to more than an hour in peak hour by car but is expected to take just 10 minutes by air.

Uber expects the other most popular route will be between Melbourne and regional centre Geelong – a trip of around 75 kilometres that takes over an hour by car but would be cut to less than 20 minutes by air.

Uber claims that congestion currently costs the country $16.5 billion each year, with that cost expected to increase to around $30 billion by 2030.

“As major cities grow, the heavy reliance on private car ownership will not be sustainable,” said Eric Allison, the global head of Uber Elevate.

Telstra CEO Andy Penn called it a “truly momentous point in time for Melbourne on the world stage”.

“Our network strength, coverage and leadership in 5G, along with our ongoing work on drones and related standards, will support Uber’s incredible technology and innovation to develop a service we have all imagined would one day be possible,” he said.

Global head of energy technology at Macquarie Capital, Greg Callman, said the firm would work with Uber “on the development and electrification of the skyports that will support vertical takeoff and landing”,

Head of parking and ground access at Melbourne Airport, Lorie Argus, said it was also fully supportive: “As the gateway to Melbourne for tens of millions of travellers each year, we can see fantastic potential for Uber Air in the future.”