Lilium, the German company developing flying taxis, has announced that it will cease operations. The company, developing vertical take-off and landing (VTOL) electric air taxis, laid off 1,000 workers in a move that signals the end of its ambitious project. The company struggled to secure the necessary funding to continue developing its technology, and its co-founder Patrick Nathen confirmed the closure of operations in a LinkedIn post.
Financial difficulties lead to workforce reductions
Lilium, which made headlines with its plans to revolutionise urban air mobility, has faced severe financial difficulties over the past year. The company had been developing its VTOL air taxis, vehicles designed to take off and land vertically, as a more eco-friendly alternative to traditional air travel. Unfortunately, Lilium could not secure additional financing to support its continued growth and innovation despite its early successes.
Reports indicate that the company struggled to attract the necessary investment, which led to the decision to lay off a significant portion of its workforce. German media outlet Gründerszene first reported that 1,000 employees were let go, marking a dramatic shift for the company that once seemed poised to reshape the future of transportation.
It is a promising start, but challenges remain
Lilium’s flying taxi project captured the imagination of many with its first successful test flight in 2017. The company’s flagship vehicle, the Lilium Jet, was designed to reach up to 300 kilometres per hour and travel up to 300 kilometres on a single charge. By 2019, the company had completed its first phase of flight tests, proving that its VTOL aircraft could reach speeds of over 100 kilometres per hour.
While these early milestones were promising, Lilium faced significant hurdles along the way, particularly when it came to securing long-term financial backing. Despite the CEO’s optimism just a month ago about the potential to raise more funds, the company ultimately could not sustain operations.
What’s next for Lilium’s technology?
With the closure of operations, there are still many unanswered questions about the future of Lilium’s technology. Although the company halts its day-to-day activities, a small team of employees will remain behind in managing its liquidation. This group will also handle Lilium’s intellectual property transition, with the company’s patent attorney, Fabien Müller, overseeing the process.
What will become of Lilium’s advanced VTOL technology and other assets remains unclear. Other companies in the aviation or transportation sectors may still use or acquire the technology. Still, Lilium’s vision of a greener future in aviation has been put on hold.
Lilium’s closure reminds us of the challenges faced by startups in emerging industries. While the company showed immense potential, the difficulties of scaling new technology in a highly competitive and capital-intensive market have proven too much to overcome. Whether flying taxis will become a reality in the near future remains to be seen, but for now, Lilium’s departure marks a significant setback for the industry.
