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The all-electric air taxi service could go a long way in helping India combat its growing problems of pollution and congestion in its major cities.

InterGlobe Enterprises, which backs India’s top airline IndiGo, and U.S.-based Archer Aviation will launch an all-electric air taxi service in India in 2026 that will be “cost-competitive” with on-road services, the companies said Thursday.

The partnership, should they get regulatory clearances, aims to capitalise on a growing need for transport solutions in the world’s most populous country that is battling severe ground travel congestion and pollution in its main cities.

Archer Aviation, backed by the likes of Chrysler-parent Stellantis, Boeing and United Airlines, makes electric vertical takeoff and landing (eVTOL) aircraft that have been touted as the future of urban air mobility.

These ‘Midnight’ e-aircraft can carry four passengers and a pilot for up to 100 miles (roughly 161 kilometers). The service aims to start with 200 aircraft and begin in Delhi, the national capital, Mumbai, the country’s financial capital, and Bengaluru, known as India’s Silicon Valley.

The companies said that a trip that typically takes 60 to 90 minutes by car in Delhi, for example, will take about 7 minutes in an air taxi.

InterGlobe Enterprises, which owns nearly 38% of IndiGo-parent InterGlobe Aviation as well as hospitality and logistics businesses, also plans to use the e-aircraft for cargo, logistics, medical, emergency and charter services.

Archer secured a $142 million-deal from the U.S. Air Force in July to provide six Midnight aircraft and said in October it would launch an air taxi service in the UAE.

Archer Aviation’s shares were up 1.5% in U.S. premarket trading on Thursday, while InterGlobe Aviation’s closed up 0.12% ahead of the news.

(Reporting by Chris Thomas in Bengaluru; Editing by Savio D’Souza)

This article was written by Chris Thomas from Reuters and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to [email protected].

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Tags: air taxis, Archer Aviation, business travel, eVTOL, india

Photo credit: India will likely see more electric air taxis starting in 2026. Reuters

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